CHARLOTTE, N.C. — A Mooresville man and former US Airways pilot faces up to 33 years in federal prison after being convicted in a tax fraud case.
A jury convicted Charles A. Davis, 63, today of ten counts of filing false tax returns and one count of obstructing the Internal Revenue Service, announced Anne Tompkins, U.S. Attorney for the Western District of North Carolina. Her office said Davis will remain in custody until he is sentenced.
In addition to a prison sentence, Davis also faces a maximum fine of $2.75 million, according to a news release.
According to federal authorities, Davis worked as a pilot for US Airways from 1983 until last November. They said he did not file income tax returns on a timely basis between 1996 and 2007, and that his employer withheld little or no federal tax from his wages because Davis falsely claimed that he was exempt from income tax withholding, according to a news release.
Authorities said Davis filed five fraudulent amended income tax returns in 2006 in which he claimed to have earned little or no adjusted gross income from 1997 to 2005. He later filed returns for 2004 to 2008 in which authorities said he falsely reported the amount of income tax that had been withheld from his wages, and requested up to $1.5 million in refunds that he was not entitled to, according to the news release.
The U.S. Attorney’s Office said evidence shown during a three-day trial showed that Davis “obstructed and impeded” the Internal Revenue Service as the agency tried to collect the tax he owed, including submitting false documents. Authorities said he also filed for bankruptcy and diverted money to his 401 (k) account as part of ways to avoid levies on his US Airways payroll account.
Authorities said Davis also owes more than $150,000 to the state of North Carolina after he used a fake address in Texas to avoid paying state income taxes.