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From Times Staff and Wire Reports

Mendel Gets 1 Year in Prison: Perry Mendel, the founder of Kinder-Care, the nation’s biggest day-care chain, was sentenced to one year in prison for evading income taxes on $482,500 he pocketed in a deal with Michael Milken. U.S. District Judge Myron Thompson also fined Mendel $100,000 for his guilty plea to one count of tax evasion. Mendel, 69, was indicted in a spinoff from the prosecution of Milken, the former head of junk bonds for Drexel Burnham Lambert Inc. Mendel was charged with knowingly filing a false tax return for 1985 when he failed to report $482,500 he received as a “commitment fee” in a junk bond deal with Drexel. Mendel’s guilty plea carried a maximum penalty of five years in prison and a $250,000 fine. The judge could have fined Mendel either twice the loss to victims or twice his personal gain.


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