Jersey County Man Convicted of $1.2 Million Tax Evasion and Unlawful Firearms Possession | WPN World People News

A Jersey County resident pleaded guilty to felony charges of tax evasion and possession of a firearm by a user of controlled substances on July 23, 2013, the United States Attorney for the Southern District of Illinois Stephen R. Wigginton announced. David Ray, 54, of Fieldon, Illinois, waived his right to face a grand jury indictment and pled guilty to charges brought directly by the U.S. Attorney’s Office.

Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a U.S. Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability, resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.

Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector, but he also acknowledged a serious cocaine habit, admitting that he purchased and used three to five ounces of cocaine every two to three weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.

Tax evasion is punishable by not more than five years in prison and/or a $100,000 fine and not more than three years of supervised release. Possession of a firearm by a user of controlled substances is punishable by not more than 10 years in prison and/or a $250,000 fine and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Ray will be sentenced in U.S. District Court on November 8, 2013.

Source: U.S. Attorney’s Office