December 2, 2002

Alice H. Martin, United States Attorney for the Northern District of Alabama, and C. Andre Martin, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, announce that a federal grand jury has returned a nine-count indictment against MARVIN DAVIS, JR., age 61, of Greensboro, South Carolina, charging him with conspiracy to defraud the Internal Revenue Service and with aiding and abetting in the filing of false claims against the United States. DAVIS is currently serving time in federal custody for similar offenses in another jurisdiction and will be brought to Birmingham for trial on these charges.

According to Martin, "The indictment charges that DAVIS, acting in concert with other individuals, conspired together and devised a scheme to defraud the United States by enticing members of Concepts Marketing International, a local investment club, 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. The indictment charges DAVIS with securing the tax forms that were used in the scheme, assisting the individuals in filling them out, and charging between $300 and $600 for his services along with a 10% fee upon receipt of the refund checks."

The indictment describes eight (8) fictitious trusts that were created by DAVIS and lists some $1,667,248 in fraudulent claims that were filed with the Internal Revenue Service. Over $900,000 in Department of Treasury checks were placed in the mail addressed to the named recipients at the time the scheme was discovered.

According to Martin, "No provision of law allows taxpayers to file for a refund of their lifetime Social Security contributions. Such schemes are patently illegal and will be prosecuted to the full extent of the law when detected. If any member of the public is approached with any such offers and proposals, it should be reported immediately to the IRS Criminal Investigation Division or to my office."

Martin stated that the penalties for making such false claims include fines of up to $250,000 and imprisonment of up to five (5) years for each count, together with mandatory special assessment fees and restitution and terms of supervised release following imprisonment. The penalty for the conspiracy count includes federal custody for up to ten (10) years.

Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.

The case is being investigated by Special Agents of the Internal Revenue Service.

Assistant United States Attorney Pat Meadows is prosecuting the case.

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