Businessman sentenced to 18 months in federal prison for false income tax return

Date: Aug. 19, 2024

Contact: [email protected]

Des Moines, IA - A businessman, formerly of Adel, was sentenced yesterday to 18 months in federal prison for filing a false income tax return.

According to public court documents, Mark Francis Davidson is the majority shareholder of a company called Collegiate Concepts, Inc., which rents dorm minifridges to colleges and college students across the United States. Beginning in 2015 and continuing until 2021, Davidson diverted over $3.8 million from the corporation to himself and failed to report this income to the Internal Revenue Service. Davidson concealed these payments from the corporation's accountant and tax preparer by providing falsified check ledgers that falsely identified checks from the corporation to Davidson as seemingly legitimate business expenses.

After completing his term of imprisonment, Davison will be on supervised release for one year. There is no parole in the federal system. Davidson was also ordered to pay $1,449,620 in restitution to the Internal Revenue Service and a fine of $20,000.

"A prison sentence should send a message to anyone who consistently underreports their income each year that it's just a matter of time before they land on the radar of IRS Criminal Investigation (IRS CI), and the U.S. Attorney's Office," said Special Agent in Charge Thomas F. Murdock of the St. Louis Field Office. "We strive to ensure the integrity and fairness of the nation's tax code, so all taxpayers pay their fair share."

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by IRS CI.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.