A Pensacola businessman embroiled in a political donations scheme 16 years ago is facing 10 counts of tax fraud.

Fred "Sport" Suttles, 51, is accused of failing to pay the Internal Revenue Service more than $2.5 million in income and employment taxes, interest and penalties between 1990 and now.

Suttles' longtime friend, Mary Ham, with whom he has a 17-year-old daughter, is a co-defendant on one charge of conspiracy to defraud the IRS.

Assistant U.S. Attorney Michelle Heldmeyer said the pair are leading "tax-protester-type lifestyles" in which they claim that they are not legally obligated to pay taxes.

Before his arrest on the contempt charge, Suttles was hiding in a motel on Pine Forest Road.

He was arrested at his jewelry store after driving a borrowed truck within a couple blocks of the business, parking it and riding to the store on a bicycle, Burgess said.

Ham was arrested Friday morning.

Ham, who lives with her 17-year-old daughter, disappeared for two months, and attempts to locate her were unsuccessful, Burgess said.