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Prosecutors lay out gold and cash seized from a barn in Damascus, part of a treasure trove of gold bullion, coins and even Iraqi dinars that was entered as evidence in the case against Chester Davis.

(Stuart Tomlinson/The Oregonian)

Standing before a federal judge Monday, a software entrepreneur defended his decade-long refusal to pay federal income taxes, saying that complying with demands made by the

would break his "blood covenant" with God.

"My hands, my feet, my words, my ideas, my labor, my actions are all and have been given to the Lord for his glory," said

, 56, of Oregon City,

of tax evasion, evasion of assessment and other charges.

Submitting a tax return would "put the God of this state above my God," Davis said, his voice breaking. "I won't do it."

But U.S. District Judge Michael Simon rejected the businessman's claims that he simply had an honest dispute with the IRS. He sentenced Davis to eight years and one month in prison.

The judge noted that Davis, believed to owe $7.1 million in taxes and penalties, transferred money to try to hide it from the government, attempted to file harassing liens against federal officials and even tried to obtain arrest warrants against IRS employees.

Chester Evans Davis

Simon also noted the irony that much of the success of Davis' company, Gladstone-based ESA International, came from federal contracts.

While everyone has a duty to pay his or her fair share of taxes, "in a very real sense, that obligation is even greater when the bulk of your profitability and resources come from other taxpayers," Simon said.

Davis also was ordered to pay all taxes owed to the IRS and must serve three years of supervised release once he finishes his prison term. Authorities have seized at least $1 million in gold bars but have been unable to locate another $4 million in gold bars that prosecutors said Davis bought.

Davis' claims at his sentencing hearing echo earlier statements he made maintaining that the court has no jurisdiction over him and objecting to the charges. He would not agree to represent himself, but also would not assist his court-appointed attorney, Lynne Morgan, in putting up a defense. Davis directed Morgan to not make an opening statement or to cross-examine witnesses.

At the sentencing, Morgan argued against the government's proposed 10-year prison term, saying that's the type of sentence that would go to someone convicted of manslaughter or child sex abuse.

Two friends spoke on Davis' behalf, arguing that he's a religious man who doesn't deserve a long prison sentence.

Shaun McAravey, who bought ESA International from Davis, argued that Davis is a generous man who gave his employees huge bonuses and paid for their expensive health care plans.

Thomas Schultz, who called himself a "private attorney general," said that he and Davis studied tax obligations together and concluded that "the labor of a human being is not a taxable commodity."

But Assistant U.S. Attorney Stacie Beckerman argued that Davis hasn't accepted responsibility for his crime. People in all professions pay their fair share of taxes to ensure clean air, safe roads and the court system among other shared needs, she said.

Instead of paying -- despite having the means to pay -- Davis shirked his responsibility to pay taxes for a decade, Beckerman said.

The judge should impose a sentence that deters others from doing the same thing, she said.

-- Helen Jung