U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

DAVIS SENTENCED FOR TAX FRAUD SCHEME

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama and James D. Vickery, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, announce that MARVIN DAVIS was sentenced today on charges of conspiracy to defraud the Internal Revenue Service and with aiding and abetting in the filing of false and fraudulent claims for payment against the United States. Davis is currently serving time in federal custody for similar offenses he committed in South Carolina.

DAVIS, 63, who is presently incarcerated at FPC Seymour Johnson in Goldsboro, North Carolina, was sentenced by United States District Judge James H. Hancock to twenty-seven (27) months in prison to run consecutively with his South Carolina sentence. Hancock also ordered Davis to pay $280,363.00 in restitution to the Internal Revenue Service and placed Davis on three (3) years supervised release which will begin after all Davis's prison terms have been served. DAVIS pled guilty and was convicted on these charges on March 6, 2003.

According to U.S. Attorney Alice H. Martin, DAVIS was convicted of acting in concert with other individuals who conspired together and devised a scheme to defraud the United States by enticing members of a local investment club, known as Concepts Marketing International, and advising them that they could file tax returns for estates and trusts and have refunded to them their lifetime contributions to the Social Security Administration. Davis secured the tax forms that were used in the scheme, assisted the individuals in filling them out, and charged the club members between $300 and $600 for his "services" along with a 10% fee upon receipt of the refund checks.

U.S. Attorney Alice H. Martin stated that Davis's scheme resulted in $1,667,248.00 in fraudulent claims being filed with the Internal Revenue Service. Over $900,000.00 in United States Treasury Checks were placed in the mail to "claimants" as a result of the fraud, and one check for $280,363.00 was received and negotiated by one of the individuals enticed by Davis's scheme. The remaining checks were intercepted from the mail before delivery was made.

"No provision of law allows taxpayers to file for refund of their lifetime Social Security contributions. It is inevitable that these schemes will be detected, punishment will be rendered and repayment of all money wrongfully received will be vigorously pursued," stated United States Attorney Alice H. Martin.

This case was investigated by the Internal Revenue Service Criminal Investigation Division and was prosecuted by Assistant United States Attorney Pat Meadows.

###