Here is a story you don’t see much, corrupt cop guilty of tax evasion. But that’s the big story on Second City Cop, a well read Chicago P.D. blog. According to records obtained from the U.S. District Court in Chicago, veteran Chicago Police Department Lieutenant Erroll Davis is pleading guilty to a single felony count of filing a false income tax return. (Second City Cop reported the guilty plea; court records were last updated on December 5th indicate a signed plea agreement by Davis.)
The government says that Davis helped facilitate a fraudulent real estate transaction. According to the plea agreement, a person only identified as “Individual A” referred Davis to a bank officer by the name of Robert Michael at Citizens Bank and Trust of Chicago. Davis was seeking to finance an apartment building in order to assist “Individual A”.
Not only did Davis lie on the bank’s loan application, prosecutors say he received a $30,000 kickback from Individual A. By not declaring the kickback as income, the government claims he filed a false tax return.
Although the feds have not yet named the mysterious Individual A, Second City Cop identifies her as former Country Club Hills (Illinois) Police Chief Regina Evans. Evans has her own problems; she was charged by state prosecutors with misusing grant monies.
Robert Michael, the former CEO of Citizens Bank, was also indicted. He was charged with bank fraud and money laundering. Those charges carry a maximum sentence of 30 years and 10 years, respectively.
As part of his plea deal, Lieutenant Davis agreed to cooperate with federal agents and prosecutors. That turns up the heat on all the others who may be involved with this fraud including Chief Evans and Michael. The lawyer who handled the real estate closing and allegedly wrote the kickback check may also be in trouble.
We frequently see that the first one to make a deal with federal prosecutors often gets the best deal. Under federal sentencing guidelines, Davis’ likely sentence is 12 to 18 months. We believe that his cooperation will garner a sentence of under 1 year and perhaps less, however.
If you are charged with a white collar crime by the U.S. Justice Department, having an experienced criminal tax attorney is critical. The rules regarding tax evasion and money laundering cases are very complex and unique.
Not only is finding a great lawyer critical, hiring him or her quickly is also important. As the story suggests, the first one to cooperate usually gets the best deal. Court records indicate that Davis’ indictment was unsealed on November 14th. Two weeks later, he had a signed plea deal with prosecutors that may allow him to avoid ever having to see the inside of a prison cell.
If you are charged with filing false returns, tax evasion, conspiracy to defraud the IRS, or willful failure to file tax returns; contact us immediately. One of our experienced criminal tax attorneys can help protect your freedom. For more information, contact attorney Brian Mahany at or by telephone (414) 704-6731 (direct). All inquiries are protected by the attorney – client privilege and kept in strict confidence. We accept IRS criminal cases nationwide.