David Zamzow, two others named in 25 racketeering counts: Read the indictment here
"If you are looking for a blend of personal service and expertise, you have come to the right place!. I offer a broad range of services for business owners, executives and independent professionals."
So reads the welcome message on Fort Collins CPA David Zamzow's website. No mention of theft, fraud and tax evasion -- charges on which Zamzow and two others have been indicted.
Zamzow's named along with Alan DeAtley and Richard Davis, from Washington state and Oregon, respectively. He faces seven counts -- one charge of conspiracy to commit theft, one of conspiracy to commit forgery, and five forgery counts. That's considerably fewer than DeAtley, who's targeted by all 25 counts, but more than Davis, who racks up just two. Click to read the complete Zamzow-DeAtley-Davis count breakdown.
The allegations are complicated, with the DeAtley-Zamzow-Davis indictment taking 25 pages to break them down. However, Zamzow, who served as a staff accountant, is accused of facilitating DeAtley's plan to claim deductions his various companies had already sold. Here's an example pertaining to a Colorado-based operation dubbed Stud Ranch:
On or about October 1, 2008, Stud Ranch filed its 2007 Colorado Corporate Income Tax Return with the State of Colorado Department of Revenue, showing the sales of credits to the Altschulers, Schwindts, and Mayers, in the total amount of $350,000.00. Based upon the reported income, Stud Ranch owed corporate income tax to the State of Colorado for tax year 2007. To reduce the amount of income tax due to the State of Colorado, Stud Ranch claimed credits in the amount of $12,014.00, to offset its tax liability for tax year 2007. However, Stud Ranch had used all its credits in tax year 2006 by selling them, and therefore did not have any credits available for use in tax year 2007. The State of Colorado Department of Revenue suffered a loss of $12,014.00, by Stud Ranch claiming a non-existent credit against its tax liability.
Losses to the Department of Revenue are estimated at more than $20,000 -- a significant sum. But as the Denver District Attorney's Office release below notes, other victims reportedly were screwed out of a million dollars-plus. Here's the DA's synopsis.
THREE NAMED IN 25-COUNT RACKETEERING INDICTMENT
Three men face racketeering, theft, forgery and tax evasion charges following a Denver Grand Jury indictment alleging an elaborate scheme to sell non-existent tax credits. The charges are the result of an investigation conducted by the Colorado Department of Revenue's Criminal Investigations Unit.
Alan Eugene DeAtley (dob: 03-04-56), Richard Lee Davis (dob: 05-26-55) and David Michael Zamzow (dob: 03-26-49) are named in a 25-count indictment handed down on Wednesday, October 6, 2010, and unsealed today.
The indictment alleges that DeAtley created multiple entities to sell non-existing tax credits to unsuspecting victims and that through this scheme caused the Colorado Department of Revenue to suffer losses as well. Losses to victims are estimated at more than $1,000,000; losses to the Department of Revenue are estimated at more than $20,000.
DeAtley is in custody in Washington state; he is being held on a $250,000 bond. Davis is in custody in Oregon; he is being held on a $50,000 bond. Zamzow was taken into custody in Ft. Collins and has been released from custody after posting a $50,000 bond. Future Denver court dates have not been set at this time.