States Attorney's Office District of Connecticut
|March 1, 2010||
FORMER WINSTED RESIDENT SENTENCED TO FEDERAL PRISON FOR TAX EVASION, CASH STRUCTURING
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that TERRY L. DAVIS, 40, formerly of Winsted, Connecticut, and currently residing in Las Vegas, Nevada, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release. Judge Arterton also ordered DAVIS to pay a fine in the amount of $6000. On December 4, 2009, DAVIS pleaded guilty to one count of tax evasion and one count of currency structuring.
According to court documents and statements made in court, on May 1, 2008, DAVIS attempted to evade paying a large part of the federal income taxes he owed by filing a fraudulent U.S. Individual Income Tax Return, Form 1040, in which he stated that his taxable income for the calendar year 2007 was $133,804, and with tax due and owing of $47,700, when, in fact, he had a taxable income of $784,537, with a tax due and owing of $287,388.
DAVIS has admitted that, for the tax years 2004 through 2007, he failed to pay a total of $463,623 in federal taxes. DAVIS is required to pay this amount to the IRS, plus penalties and interest.
Also, between 2005 and 2007, DAVIS knowingly structured cash transactions to evade the currency transaction reporting requirements of federal law, which require financial institutions to file a Currency Transaction Report (CTR) when an individual conducts a cash transaction of more than $10,000.
In July 2005, an IRS agent had cautioned DAVIS that cash structuring was a federal crime. However, DAVIS continued the illegal activity and, in order to avoid any “red flags” or the generation of any CTRs, he frequently structured cash withdrawals from several bank accounts, several financial institutions on the same day, and through ATM withdrawals.
For example, on consecutive days in December 2006, DAVIS made cash withdrawals from his account at People’s Bank in the amounts of $8,000 and $9,500 respectively.
The total amount of money structured by DAVIS during this time period was $534,544.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division.
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