Charles A. Davis, 63, formerly of Mooresville, North Carolina, was sentenced to 120 months in prison for committing tax fraud, the Justice Department and IRS announced. The judge also ordered Davis to serve twelve months of supervised release after his prison term and pay $538,569 as restitution to the IRS.
Following a three-day trial in March 2012, a federal jury convicted Davis of ten counts of filing false tax returns and one count of obstructing the IRS. According to evidence presented at trial and court records, from 1983 through 2011, Davis was employed as a commercial airline pilot for US Airways. From 1996 through 2007, Davis failed to file timely income tax returns despite receiving wages ranging from $129,950 to $190,510. For years 1997 through 2005, Davis's employer withheld little or no federal income tax from his wages because Davis previously had falsely represented that he was exempt from income tax withholding.
Trial evidence established that in April 2006, Davis filed five fraudulent amended income tax returns for 1996 through 2000, falsely claiming that he earned little or no adjusted gross income in each of those years. And from April 2008 to February 2009, Davis filed five fraudulent individual income tax returns for 2004 through 2008, reporting false amounts of federal income tax withheld for each of those years and requesting fraudulent refunds from the IRS in amounts up to approximately $1.5 million. The evidence also established that during the time he failed to pay his taxes, the defendant drove a Ferrari and a Mercedes, and lived in a lakefront home on Lake Norman, North Carolina.
According to trial records and at the sentencing hearing, during the IRS's efforts to collect Davis's tax debt, Davis obstructed and impeded the IRS by submitting fraudulent payment documentation to the IRS and concealing his assets and income in a nominee bank account. Davis also used a fraudulent address in Texas to avoid paying state income taxes and currently owes the North Carolina Department of Revenue in excess of $150,000.
In handing down the sentence, Judge Voorhees emphasized the egregious nature of Davis's conduct and Davis's lack of regret and remorse.
According to filed documents, Davis also took various steps to avoid IRS levies on his US Airways payroll account and his bank accounts, including filing for bankruptcy and diverting funds to his 401(k) account.
Davis has been in local federal custody since his conviction in March 2012. Upon designation of a federal facility he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
Source: US Department of Justice