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DENVER—A Kremmling man has been arrested and charged with a federal crime for allegedly sending a letter with white powder in it to the Colorado Department of Revenue.

Federal agents arrested 51-year-old Matthew O’Neill 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.

An employee working on O’Neill’s state tax case discovered a white powder May 25 that fell out of a manila envelope allegedly mailed by O’Neill. A hazardous materials team later determined the white powder was baking soda.

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.

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