DENVER (CBS4/AP) – CBS4 has confirmed that the FBI has arrested a suspect in their investigation into a powdery substance mailed to a government building a week ago.

Federal agents arrested Matthew O’Neill, 51, of Kremmling Tuesday without incident. The U.S. Attorney’s Office Wednesday says O’Neill has been charged with false information and hoaxes related to a terrorism offense.

matthew oneill Arrest Made In Last Weeks White Powder Incident

Matthew O'Neill (credit: Grand County Sheriff)

The substance was mailed to Capitol Annex at 1385 Sherman Street on May 25. An employee working on O’Neill’s state tax case discovered the white powder that fell out of a manila envelope allegedly mailed by O’Neill.

A hazardous materials team later determined the white powder was baking soda.

“I know that he was having a dispute with them about his taxes because he doesn’t think it’s right that they are taxing him. He has an issue with the tax laws,” said O’Neill’s daughter Ann Heid.

About 500 people were forced to evacuate for several hours while a hazardous materials team responded to the building.

One Department of Revenue employee said O’Neill has sent several documents stating he believes he does not have to pay state or federal taxes because he’s a sovereign citizen.

Court documents indicate that O’Neill owed $15,000 in back taxes for 2006 and 2007. If convicted, O’Neill faces up to five years in prison and a $250,000 fine.

Investigators said O’Neill’s name was listed on the Certified Mail documentation.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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