United States v. David Clum, Jr.

492 F. App'x 81
CourtCourt of Appeals for the Eleventh Circuit
DecidedOctober 15, 2012
Docket12-10029
StatusUnpublished

This text of 492 F. App'x 81 (United States v. David Clum, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. David Clum, Jr., 492 F. App'x 81 (11th Cir. 2012).

Opinion

PER CURIAM:

Defendant David Clum, Jr., appeals the district court’s pretrial detention order after being indicted for various offenses related to tax fraud. After review of the briefs on appeal and consideration of the record, we affirm.

I. BACKGROUND

A. The Indictment

Defendant Clum and several codefen-dants were indicted in the Southern District of Florida on one count of conspiring to defraud the United States, in violation of 18 U.S.C. § 286, and forty-one counts of making false claims, related to a scheme to file fraudulent tax returns, in violation of 18 U.S.C. § 287. Defendant Clum was a principal in PMDD Services. The indictment alleged that Clum and his codefen-dants operated a scheme, primarily through PMDD Services, to help taxpayers obtain fraudulent tax refunds. The scheme was premised upon “redemption theory,” which espouses that individuals are not responsible for their personal debts and may seek money from the IRS to repay those debts.

According to the indictment, PMDD Services prepared false IRS Forms 1099-OID (Original Issue Discount) on behalf of its clients. These tax forms falsely reported that the clients’ creditors had withheld large amounts of the clients’ income as taxes. The clients’ tax returns then requested a refund of the money falsely claimed to have been withheld. Clum’s scheme involved at least 180 clients from 30 different states, and resulted in the submission of fraudulent tax claims exceeding $120 million.

B. First Detention Hearing

Clum was arrested at his home in Tennessee. A federal magistrate judge in Tennessee held the initial pretrial detention hearing. During that hearing, the government introduced testimony from several law enforcement agents who had participated in Clum’s arrest and initial detention. According to their testimony, when the agents came to Clum’s residence to arrest him, Clum physically resisted being handcuffed and said obscenities. During the car ride from his home to the U.S. Marshals’ office, Clum talked about the government doing the bidding of the banks, and told the agents that they were slaves to the system.

At the U.S. Marshals’ office, Clum refused to provide any basic details about himself, such as his name or date of birth, and physically resisted being fingerprinted and having his photograph taken. During his initial appearance before the magistrate judge in Tennessee, Clum refused to take a seat as instructed, and had to be forcibly placed into the seat.

*83 In light of the above testimony, the magistrate judge expressed concern about releasing Clum. Addressing the court, Clum apologized profusely for his behavior during and after arrest, asked for the court’s mercy, and explained that he was surprised and angry at being arrested and that he feared for his family. Clum stated that his actions were “absolutely unconscionable” and out of character. Furthermore, Clum’s wife took the stand and assured the magistrate judge that Clum would not flee and that she would adequately oversee him as a third-party custodian upon his release.

At the end of the hearing, the magistrate judge ordered Clum released on a $25,000 unsecured bond. However, the government moved to stay his release pending appeal, and the district court in Florida granted the government’s motion.

C. Government’s Appeal to the District Court

The government filed an appeal in the Florida district court from the magistrate judge’s order of release. In its brief, the government argued, inter alia, that Clum was a flight risk because he resisted arrest, refused to cooperate with law enforcement, and had a history of defying the authority of the courts. The government also argued that there was overwhelming evidence of Clum’s guilt and that he faced over 20 years of incarceration if convicted. The government pointed to evidence that Clum was a principal in PMDD Services, the corrupt tax preparation firm that prepared numerous fraudulent tax returns on behalf of its clients, and that Clum marketed the tax fraud scheme knowing that it was illegal.

To support its appeal, the government submitted a number of exhibits, which included (1) documents showing that Clum had been convicted in 2006 for contempt of court due to his failure to appear in court, and was sentenced to 10 days in jail and fined $250; (2) a letter from Clum to the court in the contempt proceeding, in which Clum gave a frivolous justification for his failure to respond to the court’s show-cause order; (3) a transcript from one of Clum’s seminars promoting the fraudulent tax scheme, wherein he told his audience how the government used tanks, helicopters, and over 40 SWAT members to evict him from his property in Virginia; (4) another seminar transcript wherein Clum (a) advised his audience to not “go into a courtroom,” (b) stated that the last time he was arrested, he refused to be fingerprinted or photographed, or to answer questions willingly, and (c) advised that he would question the authority of the judge if brought to court; (5) documents evidencing Clum’s involvement in the tax-fraud scheme; and (6) a transcript of Clum’s first detention hearing, reflecting the agents’ testimony described above.

The district court granted the government’s appeal and ordered Clum detained.

D. Second Detention Hearing

Clum then moved for a de novo eviden-tiary hearing, which the district court granted. At the second detention hearing, the government proffered its aforementioned appeal and corresponding exhibits as evidence in favor of detention, and argued that Clum’s anti-government ideology showed him to be a flight risk and that his wife would not be an appropriate third-party custodian.

Clum’s counsel, in turn, presented a number of factors in support of Clum’s release, including the following: (1) Clum had lived in Tennessee with his wife and two daughters continuously for six years, had rented their current residence for the past two years, and had renewed the lease for another year; (2) Clum had no contacts *84 outside of the United States; (3) Clum was heavily involved in the lives of his family members and had served honorably in Vietnam; (4) once Clum learned that the scheme he was involved in was likely illegal, he stopped participating in it; (5) Clum’s circumstances were similar to those of his codefendants, who were released on only a signature bond; (6) the IRS asked Clum to undergo an interview prior to his arrest, and Clum complied by speaking with them for several hours, without trying to flee during or after the interview; and (7) Clum had placed himself at the mercy of the magistrate judge in Tennessee, and the magistrate judge believed Clum to be good candidate for pretrial release.

Clum’s wife also addressed the court, stating that Clum was involved in his children’s lives, that he would not flee and would obey court orders, and that she was willing to submit to the authority of Pretrial Services and monitor her husband as required by law.

D.

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Bluebook (online)
492 F. App'x 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-david-clum-jr-ca11-2012.