Davidson was housed in a minimum security facility. Minimum security institutions, also known as Federal Prison Camps (FPCs), have dormitory housing, a relatively low staff-to-inmate ratio, and are work and program-oriented. FPCs are generally located adjacent to larger institutions, where inmates help serve the labor needs of the larger institution.

On April 28, 2008, Davidson was sentenced by U.S. District Court Judge Marcia S. Krieger to serve 21 months (just under 2 years) in federal prison. Judge Krieger also ordered him to pay $714,139 in restitution to the IRS. As part of the restitution, Davis has agreed to forfeit property he purchased, including gold coins (which the IRS is selling today), with the ill gotten proceeds of his offense.