30 April – LAWFUEL – The Law News Network – A Rancho Cucamonga attorney has been convicted of various federal charges including tax evasion, making a false statement in a loan application and witness tampering.
James Davis, 51, was found guilty yesterday afternoon by United States District Judge R. Gary Klausner, who immediately remanded Davis into custody.
The evidence presented during the bench trial showed that Davis earned more than $1 million in taxable income from his law practice, James Davis and Associates, and owed more than $360,000 in taxes to the Internal Revenue Service. Davis failed to file an income tax return for the years 1999, 2000 and 2001, during which he failed to pay any federal income tax.
Davis attempted to conceal his income from the IRS by creating a bogus non-profit corporation, the California Fire Marshal Officer’s Association, which he used to conceal income from his law practice and to pay his employees and personal expenses.
The false statement charge relates to a loan application Davis made, in which he applied for and obtained a loan for his bogus non-profit. In the application, he falsely claimed that the association had income of $400,000.
The IRS executed search warrants on Davis’s residence and business on July 16, 2002. After the IRS executed the warrants, Davis sent threatening letters to various individuals who had information relevant to the IRS’s investigation. The letters accused those individuals of filing “false reports with the IRS” and threatened a multi-million dollar lawsuit against them. Davis also threatened to file criminal reports against these individuals naming them as “suspects” and created a website offering a “$10,000 reward for the arrest and conviction” of these individuals.
The loan fraud charge carries a maximum possible penalty of 30 years in federal prison. The three tax evasion charges carry a maximum possible penalty of five years in prison, and the three witness tampering charges carry a maximum possible penalty of 10 years in prison.
In a separate proceeding, Davis was convicted in February of boarding an airplane with a handgun, impersonation of a government agent and false statements in an FAA application. For more information on this case, Judge Klausner is scheduled to sentence Davis on both cases on August 1.
The cases against Davis are the result of an investigation by IRS-Criminal Investigation Division and the Department of Homeland Security, Office of Inspector General.
CONTACT: Assistant United States Attorney Brian Hershman
Assistant United States Attorney Pegeen Rhyne