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San Diego Businessman Sentenced for Bank Fraud and Tax Evasion
David Daughtrey, a 60-year-old resident of El Cajon, California, was sentenced to 18 months in federal prison for his role in a bank fraud and tax evasion scheme.
According to court documents, Daughtrey conspired with others to commit the crimes from July 2006 until April 2016. As part of the bank fraud scheme, Daughtrey directed another individual to submit a mortgage application to a national bank to purchase a $1.8 million residence, and to falsely claim that the funds used as down payment belonged to, and the residence would be used by, the third party.
Daughtrey made monthly mortgage payments of approximately $8,000 for his residence but continued to represent to the bank that the third party owned the house. Daughtrey later submitted a false hardship letter on behalf of the third party in an effort to modify the terms of the loan on the home.
Daughtrey also conspired to commit tax evasion by filing tax returns listing substantially less income than Daughtrey actually earned. Daughtrey’s tax return for the year 2012, for example, omitted at least $498,612 in income. Daughtrey failed to report his total income in tax years 2013, 2014, and 2015, and did not file timely tax returns for subsequent years.
Daughtrey agreed to pay $1,053,989.63 in restitution to the IRS, which includes the total tax loss plus penalties and interest.
The sentencing hearing took place on March 22, 2021, in U.S. District Court in San Diego. U.S. District Judge Larry A. Burns imposed the 18-month sentence and ordered Daughtrey to pay restitution.
Daughtrey was charged with one count of conspiracy to commit bank fraud and tax evasion, and one count of making a false tax return. The maximum penalty for these charges is five years’ imprisonment and a $250,000 fine.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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