By Greg Peterson
News Director, Owner
Upper Peninsula Breaking News
(Milwaukee, WI) – Federal prosecutors and Wisconsin tax collectors are going after the Swiss Bank account of a elderly convicted sex offender who is nearing the final year of his sentence.
69-year-old David Lawrence Comey is serving time at the Waupun Correctional Institution in northeast Wisconsin – where he was served with the federal civil complaint on Wednesday. He has served over 12 years and two months of a 13-year rape sentence. Prison records state he is eligible for mandatory release and that starts 12 years of extended supervision (probation) on July 1, 2017 and his “maximum discharge date” from probation is July 1, 2029.
Comey is self-proclaimed inventor, who apparently inherited millions, and was known in the mid-1980’s as a “critic” of the Elmbrook School District, whose arrest on a shoplifting charge was detailed in a April 16, 1985 story in the Milwaukee Journal.
Comey has served over 12 years and two months of a 13 year sentence.
On March 24, 2004, a Waukesha County jury convicted Comey of felony “2nd degree sexual assault of a mentally ill victim.”
Comey’s Wisconsin corrections department number is 00260220, but he is worth millions to the state and feds. If that weren’t enough, state records show Comey still owes nearly $21,000 in fines and fees on his sexual assault conviction.
One of the federal government’s superstar tax prosecutors filed a suit last week at federal court in Milwaukee to recover $1.1 million dollars in an “action to recover money.” Federal prosecutor Martin M. Shoemaker, a high profile trial attorney with the Justice Department’s Tax Division, filed the action on Wed., June 1, 2016 and the case was assigned to U.S. District Court Judge J. P. Stadtmueller in Milwaukee.
The U.S. Treasury Department and the U.S. Justice Department allege Comey violated a law that requires the filing of a “Report of Foreign Bank and Financial Reports, commonly known as an FBAR”
Comey never filed the FBAR – including in 2008 – that is due by June 30 “of each calendar year with respect to foreign financial accounts exceeding $10,000,” Shoemaker wrote in the complaint. “The penalty for willful violations of the reporting requirements mandated” is the “greater of (1) $100,000 or (2) 50% of the balance in the foreign account at the time of the violation.”
Milwaukee Federal Courthouse
“In 2007 Comey maintained a foreign financial account at UBS AG in Switzerland” and “failed to disclose his financial interest in that foreign financial account for 2007,” wrote Asst. U.S. Attorney Shoemaker in the June 1 civil action on behalf of the U.S.
“The balance of Comey’s foreign financial account was at least $1,963,566,” in 2008, the federal civil complaint states.
“Comey’s failure to disclose his interest in the foreign account was willful,” the complaint states. Comey “knowingly or recklessly failed to report his interest in the account and deliberately meant to conceal the existence of the account.”
U.S. Department of Justice, Washington, D.C.
Comey’s Swiss bank account has not escaped the eyes of state tax officials who are seeking over a million dollars in fines and interest. Wisconsin filed delinquent tax warrants against Comey 10 times between Jan. 1998-Aug. 2011 totaling over one million dollars in taxes, interest and penalties.
“After a dispute with the Wisconsin Department of Revenue over the payment of sales tax” by Comey’s small corporation, he “stopped paying personal income tax sometime in 1977,” states a Wisconsin Court of Appeals ruling dated March 25, 1999.
In 1995, Comey pleaded no contest and was convicted of five counts of failure to file state tax returns. Comey received probation years earlier after he was convicted of two counts of filing fraudulent sales tax returns for vehicles and two counts of failure to file personal income tax returns.
“Prior to those convictions, between 1988 and 1992, Comey transferred $951,000 into Swiss bank accounts, which (the Wisconsin Department of Revenue) cannot trace,” the state court of appeals ruling reads. “The court made it clear to Comey that he had to file state and federal income tax returns.”
Armed with a Northwestern University engineering degree, “Comey said “he was an inventor and he needed to protect the privacy of his inventions,” according to the state court of appeals ruling.
Comey “inherited a lot of money in the form of stocks which had increased in value.”
In banking documents, Comey allegedly stated he “would like to avoid disclosure of my identity to the U.S. Internal Revenue Service under the new tax regulations,” state records state. Comey declared in Nov. 2000 that he “expressly agrees that my account shall be frozen for all new investments in U.S. securities.”
Comey “instructed UBS to hold all mail from the account to ensure there was no paper trail entering the United States,” the state appeals court ruling states. “Comey has failed to file a federal income tax return” between 1992 and 1999 and “thus has failed to report either the amounts earned in his foreign account or the existence of the account on Schedule B of (income tax) Form 1040.”
Comey was convicted in 1995 “for taking a copy of the statutes on C.D. Rom from the Office of the Revisor of Statutes without paying for it,” the appeals court wrote outlining Comey’s extensive criminal history.
Comey has a misdemeanor criminal convictions for disorderly conduct in 1986 and shoplifting in 1998.
Federal suit against sex offender with Swiss Bank Account
Citing his inventing skills, Comey stated he needed to “protect the privacy of his inventions” and did “not want to file returns showing his legitimate deductions for research expenses, so he set up a system with a corporation to avoid having to file returns,” the appeals court ruling states.
“Comey stated that the IRS conducted an investigation, instigated by opponents when he ran for political office,” the ruling states. “Comey accused DOR employees of filing false affidavits” and “maintained he had legally managed to have no tax liability.”
The state court of appeals ruling dated March 25, 1999 was affirmed by Judge P. Charles Jones, a Dane County Circuit Court judge participated the Judicial Exchange Program that swaps judges between the trial courts and the Wisconsin Court of Appeals.
The prior convictions are the two counts of failure to file a personal income tax return and two counts of filing false sales tax returns that the prosecutor referred to at the July 2, 1997 sentencing. On May 26, 1993, Comey was sentenced to four months’ in jail on one count of failing to file his personal income tax return received probation for one count of failure to file a personal income tax return and two counts of filing false sales tax returns. After Comey failed to file tax returns in violation of the probation conditions, his probation was revoked and on June 7, 1995 he was sentenced to 150 days in jail.
The WI Dept of Revenue filed a civil action against Comey, Cristeen B. Comey, and the 777 Corporation. Details of that case and the purpose of the 777 Corporation were not available.
The U.S. government filed a civil suit against Swiss bank UBS AG to reveal 52,000 American customers who allegedly conspired with the bank to defraud the IRS and federal government taxes. The Swiss Financial Market Supervisory Authority (FINMA) agreed to reveal information on 4,450 of the 52,000 accounts sought by the IRS, preserving the anonymity of more than 90 percent of their U.S. Customers.
On August 29, 2013, the U.S. Justice Department announced the Swiss Bank Program that “provides a path for Swiss banks to resolve potential criminal liabilities in the United States,” according to the USDOJ Swiss Bank Program webpage. Swiss banks were “required to advise the department by Dec. 31, 2013” that they may have “committed tax-related criminal offenses in connection with undeclared U.S.-related accounts.”
Banks under criminal investigation related to their Swiss-banking activities and all individuals were excluded from the program.
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Wisconsin Department of Revenue filed 10 delinquent tax warrants against Comey between Jan. 1998-Aug. 2011
Delinquent tax warrant in Waukesha County
Filed 08-17-2011 for 07-25-2011 judgment
$48,625.46
Two delinquent tax warrants in Waukesha County
Filed 08-17-2011 for 07-25-2011 judgment
$30,648.37
Delinquent tax warrant in Waukesha County
Filed 08-17-2011 for 07-25-2011 judgment
$171,172.46
Delinquent tax warrant in Waukesha County
Filed 08-17-2011 for 07-25-2011 judgment
$209,011.61
Delinquent tax warrant in Winnebago County
Filed 11-29-2010 for 08-30-2010 judgment
$30,648.37
Delinquent tax warrant in Winnebago County
Filed 11-29-2010 for 08-30-2010 judgment
$48,625.46
Delinquent tax warrant in Winnebago County
Filed 11-29-2010 for 08-30-2010 judgment
$209,011.61
Delinquent tax warrant in Winnebago County
Filed 11-29-2010 for 08-30-2010 judgment
$171,172.46
Delinquent tax warrant in Waukesha County
Filed 01-13-1998 for 08-18-1997 judgment
$11,212.65
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12-18-1996 shoplifting/retail theft guilty plea (one count dismissed on 03-20-1997)
11-22-1997 violation of domestic abuse injunction; dismissed
12-18-1997 pleaded guilty to harassment violating restraining order and a charge of misdemeanor bail jumping-misdemeanor was dismissed.
06-16-1998 found guilty of misdemeanor disorderly conduct
6-18-2003 misdemeanor disorderly conduct; dismissed on prosecutor’s motion Milwaukee County
11-18-2003 felony bail jumping; dismissed Waukesha County
03-24-2004 2nd degree sexual assault of a mentally-ill victim; found guilty by Waukesha County jury
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U.S. Treasury Department
Report of Foreign Bank and Financial Reports, commonly known as an FBAR
https://www.fincen.gov/forms/bsa_forms/fbar.html
https://www.irs.gov/uac/newsroom/taxpayers-with-foreign-assets-may-have-fbar-and-fatca-filing-requirements-in-june
http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
https://www.treasury.gov/services/Pages/TD-F-90-22.1-Report-of-Foreign-Bank-and-Financial-Accounts.aspx
https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar
FinCEN Regulatory Helpline
800-949-2732
General FBAR filing questions may be directed to the IRS hotline
1-800-800-2877, option 2
FBARQuestions@irs.gov
Foreign financial account at UBS AG in Switzerland
https://www.ubs.com/us
https://en.wikipedia.org/wiki/UBS
https://en.wikipedia.org/wiki/UBS_tax_evasion_controversy
https://www.justice.gov/opa/pr/ubs-ag-admits-anticompetitive-conduct-former-employees-municipal-bond-investments-market-and
https://www.irs.gov/pub/irs-drop/bank_agreement.pdf
http://usatoday30.usatoday.com/money/industries/banking/2009-02-19-ubs-tax-evaders-irs_N.htm
Wisconsin Department of Revenue
https://www.revenue.wi.gov/
Martin M Shoemaker, trial attorney with the Justice Department’s Tax Division
martin.m.shoemaker@usdoj.gov
202-514-6491 (office)
202-514-6770 (fax)
United States Department of Justice (DC)
Tax Division
Ben Franklin Station
555 4th St NW
PO Box 7238
Washington, DC 20044-7238
https://www.justice.gov/tax
https://www.justice.gov/tax/about-division
https://www.justice.gov/tax/swiss-bank-program
https://www.justice.gov/tax/file/631361/download
https://www.justice.gov/tax/file/631366/download
http://thetaxtimes.blogspot.com/2015/10/doj-is-following-money-trail-disclosed.html
https://twitter.com/thejusticedept
http://www.law360.com/articles/755483/a-look-at-the-doj-s-latest-offshore-tax-case
https://taxcontroversywatch.com/category/swiss-bank-program/
http://www.accountingweb.com/tax/individuals/contrary-to-reports-doj-will-continue-probe-of-ubs-swiss-bank-account-holders
https://www.blankrome.com/index.cfm?contentID=37&itemID=3859
https://www.justice.gov/opa/pr/justice-department-announces-four-banks-reach-resolutions-under-swiss-bank-program-0
https://www.justice.gov/opa/pr/justice-department-announces-final-swiss-bank-program-category-2-resolution-hszh-verwaltungs
https://taxcontroversywatch.com/2016/01/27/justice-department-announces-historic-conclusion-of-swiss-bank-program-for-category-2-institutions/
https://www.justice.gov/tax/offshore-compliance-initiative
Background:
https://www.wicourts.gov/ca/opinion/DisplayDocument.html?content=html&seqNo=13931
The court of appeals ruling was affirmed by Judge P. Charles Jones, a Dane County Circuit Court judge participated the Judicial Exchange Program that swaps judges between the trial courts and the Wisconsin Court of Appeals
https://wicourts.gov/courts/appeals/judexchange.htm
U.S. District Court Judge J. P. Stadtmueller in Milwaukee
414-297-1122
https://en.wikipedia.org/wiki/Joseph_Peter_Stadtmueller
www.wied.uscourts.gov/judges/jp-stadtmueller
www.jsonline.com/news/milwaukee/54417857.html
United States Courthouse Room 471
517 East Wisconsin Avenue
Milwaukee, WI 53202
Taxes involving the United States of America represented by Martin M Shoemaker, trial attorney with the Justice Department’s Tax Division
https://assets.documentcloud.org/documents/1688298/txw-3-2015cv00075-complaint-attachment-3.pdf
https://assets.documentcloud.org/documents/1688298/txw-3-2015cv00075-complaint-attachment-3.pdf
https://www.justice.gov/sites/default/files/tax/legacy/2009/11/09/dykeman_filed_complaint.pdf
https://www.treasury.gov/AUCTIONS/IRS/docs/oksrjo8294oth.pdf
http://famguardian.org/subjects/Taxes/CaseStudies/CHansen/Litigation/DOJInjunction20050502/Motions/20050822-StrikeJury/20050822-0021-22-NotMotionStrikeJury.pdf
http://www.quatloos.com/Q-Forum/viewtopic.php?t=9455
https://www.justice.gov/sites/default/files/tax/legacy/2006/05/18/BishopInjunction.pdf
http://www.accountingweb.com/tax/irs/federal-court-halts-tax-fraud-scam-in-missouri
https://www.justice.gov/sites/default/files/tax/legacy/2011/03/04/haney_complaint.pdf
https://www.justice.gov/sites/default/files/tax/legacy/2009/01/16/GosneyComplaint_0.pdf
https://dockets.justia.com/docket/louisiana/laedce/2:2013cv06485/160171
https://www.justice.gov/archive/tax/Stoll_Perm_Inj.pdf
David L. Comey, DOC 00260220
https://wcca.wicourts.gov/caseSearchResults.do?recordsPerPage=25&partyName.firstName=david&partyName.lastName=comey&partyName.businessName=&partyName.middleName=l&partyName.showMissingMiddleNames=true&&countyNo=0&caseNo.caseNo=&rss=1
http://offender.doc.state.wi.us/lop/detail.do
http://www.sorarchive.com/directory/WI/C/David_L_Comey_593441
https://www.wicourts.gov/ca/opinion/DisplayDocument.html?content=html&seqNo=13931
https://www.wicourts.gov/ca/opinion/DisplayDocument.html?content=html&seqNo=13931#_ftnref2
http://offender.doc.state.wi.us/lop/detail.do
https://wcca.wicourts.gov/caseDetails.do;jsessionid=F8C172A065256C2F1813C63A4E87EB18.render6?countyNo=67&caseNo=2003CF000800&cacheId=A1921B6BB39CD5FCA56C7E8F693B1181&recordCount=1&offset=0
Wisconsin Department of Corrections
http://www.wi-doc.com
Waupun Correctional Institution
http://doc.wi.gov/families-visitors/find-facility/waupun-correctional-institution
Seal of the Wisconsin Department of Corrections .png
Fry1989
Hazmat2
https://en.wikipedia.org/wiki/Waupun_Correctional_Institution
Waupun Correctional Institution
Mr. Brian Foster, Warden
920-324-5571 (office)
920-324-7250 (fax)
Waupun Correctional Institution
200 S. Madison St.
P.O. Box 351
Waupun, WI 53963-0351
Sex Offender Registry Program:
(608) 240-5830
Sex Offender Registry Office
DOC Sex Offender Registry Program Administration
3099 E Washington Avenue
Madison, WI 53704
Upper Peninsula Breaking News by Greg Peterson 