San Diego Businessman Pleads Guilty to Tax Evasion and Bank Fraud

Defendant Lied About His Income and the Ownership of His Home

Court documents reveal that David Daughtrey, a businessman from San Diego, recently pleaded guilty to tax evasion and bank fraud. Although the charges are unrelated in nature, they do certainly demonstrate the repercussions for being untruthful with the government and banking institutions.

As part of his plea deal, Daughtrey admitted that between 2013 and 2015, he substantially understated income for both he and his wife. After 2015, he stopped filing individual income tax returns, altogether. The IRS estimated that the total tax loss from his illegal activity was greater than $400,000. The plea deal stipulates that Daughtrey will pay the IRS restitution of just over $1 million, which also represents interest and penalties related to the principal balance of the tax loss.

Additionally, Daughtrey admitted to lying to Wells Fargo as to the ownership of his primary residence. Investigators uncovered evidence that indicated that beginning in 2006, Daughtrey worked with a third party to obtain a mortgage for a property that would become his personal residence. Although Daughtrey paid the mortgage for years, the bank was under the impression that the property was owned and being lived in by another party. As a result of the bank fraud charge, the court ordered Daughtrey to make a good-faith effort to have the home transferred into his name. Daughtrey will be sentenced in November.

The Risk of Tax Noncompliance and When to Get Help

Although many taxpayers believe that tax evasion and other tax-related crimes are victimless, the IRS and state tax authorities take a hard-liner approach when identifying and prosecuting tax noncompliance. It is not uncommon for taxpayers who have failed to file a tax return or have intentionally inflated deductions or omitted income to believe that they will simply slide under the IRS or state tax authority radar. With tax fraud detection technology increasing at a rapid pace, it is becoming less a matter of if your fraudulent activity is discovered and more a matter of when.

Working with an experienced tax attorney to come into compliance prior to the IRS discovering your tax misdeeds can save you worry, money, and potentially a federal prison sentence. Likewise, working with a tax defense attorney once the IRS has contacted you can boost your chances of walking away from the situation without feeling the full wrath of the IRS. In either case, your seasoned tax lawyer will be a buffer between you and the IRS. Thus, you will never have to go up against the IRS alone.

We Are Here for You

Regardless of your particular business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

In addition to our main office in Irvine,  the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

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Questions and Answers on Unfiled Back Taxes

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Questions and Answers for Criminal Tax Representation

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