PHILADELPHIA
Former Philadelphia sheriff allegedly enriched himself at the expense of taxpayers by hiding the sale of court-ordered, mortgage-foreclosure real estate in exchange for “gifts” totaling hundreds of thousands of dollars, officials announced last week.
Last week, a superseding indictment was unsealed charging former Sheriff John Green, 68, of Kissimmee, Florida, and James Davids, 65, of Wyncote, Pennsylvania, with conspiracy and four counts of honest services fraud involving the Sheriff’s Office.
Davis is also charged with two counts of filing a false tax return and three counts of willful failure to file a tax return.
If convicted of all charges, Davis faces up to 94 years in prison. Green faces up to 85 years behind bars, according to officials.
Green was responsible for the execution of all the duties of the Sheriff’s Office, including the sale of real property subject to mortgage foreclosure and tax sales at Sheriff’s sales.
James Davis was co-owner of an advertising and public relations company, Reach Communications Specialists, and a title search and settlement company, RCS Searchers, Inc.
Green and Davis allegedly got rich by abusing the public trust and distressed homeowners.
Green agreed to Davis’ companies receiving contracts, business, and fees from the Sheriff’s Office in the sale of the real estate for personal benefits.
This is what alleged in the indictment
From 2002 through 2010, Davis and his companies developed near exclusive control of much of the work connected to the Sheriff’s Office court-ordered sales of properties.
Davis and his companies also handled the advertising for Green’s reelection campaigns, including for Green’s 2007 reelection campaign.
Davis provided Green with a stream of personal benefits that included the following benefits:
- Buying and renovating a home for Green which was then sold to Green at a loss
- Providing more than $210,000 in hidden payments to Green’s 2007 reelection campaign
- Giving more than $320,000 as gifts and interest-free loans to Green for Green’s retirement home in Florida.
- No other vendors were allowed to bid and compete against Davis’ companies for the services that they provided to the Sheriff’s Office on the sale of properties at Sheriff’s sales
- Green expanded the amount of services provided by Davis’ companies and paid for out of the proceeds of the Sheriff’s sales
- Green allowed Davis’ companies to add and increase fees that were paid for out of the proceeds from the Sheriff’s sales.
- Each dollar that went to Davis and his companies from the property sales was a dollar that would never make it to the distressed property owners who were entitled to the remainder of the proceeds after the satisfaction of liens and necessary costs.
- Davis was permitted to place friends and family members on the staff at the Sheriff’s Office who were assigned responsibilities connected to the Sheriff’s sales.
- Davis filed a false U.S. income tax return for Reach Communications for tax year 2007 by falsely reporting a business loss of approximately $146,669.
- Davis allegedly filed a false individual 2007 U.S. income tax return, by falsely reporting a taxable income of $408,072.
- Davis is also charged with failing to file tax returns for tax years 2008, 2009, and 2010.
The indictment also includes a notice of forfeiture seeking $7 million and property from Davis and Green.
The FBI, the Internal Revenue Service Criminal Investigation Division, and the Philadelphia Office of the Inspector General investigated this case.
The defendants are presumed innocent unless proven guilty.