California Man Pleads Guilty to Defrauding CARES Act Applications and Business Lenders
A California man, Craig David Davis, 49, of Venice, has pleaded guilty to wire fraud charges within the Japanese District of Virginia. Davis admitted to defrauding diverse Coronavirus Abet, Relief, and Economic Security (CARES) Act programs, including the Paycheck Protection Program (PPP) and the Considerable Street Lending Program (MSLP), of extra than $10 million.
Davis, the owner of Shining Leading edge LLC, which he falsely supplied as a reliable computer hardware retailer and storage condo supplier, submitted incorrect loan applications below these programs in 2020. In accordance to court docket documents, Davis falsely claimed that Shining Leading edge had large sales and employed as many as 17 people. In actuality, Shining Leading edge had no workers and generated no reliable earnings. To fortify his incorrect claims, Davis supplied banks with falsified tax returns, payroll documents, and financial statements.
As successfully as to the CARES Act fraud, Davis also confessed to his involvement in a years-prolonged device to defraud industrial equipment lenders. This device enthusiastic directing industry homeowners to put up loan applications for buying computer equipment, supported by invoices from corporations love Shining Leading edge. After the lenders current the loans and disbursed the funds, Davis and his co-conspirators kept a portion of the proceeds whereas remitting the majority to the borrowers. No equipment changed into in actuality supplied, with out reference to what changed into shown on the incorrect invoices. This device resulted in over $60 million in fraudulently ended in lending across extra than 350 separate loans.
Davis is scheduled for sentencing on December 12, 2024. He faces a maximum penalty of 20 years in penal advanced. The ideal sentence will make sure by a federal district court docket take hold of, who will preserve in mind the U.S. Sentencing Guidelines and diversified statutory components.
The announcement of Davis’s guilty plea changed into made by Main Deputy Assistant Attorney Celebrated Nicole M. Argentieri, head of the Justice Department’s Prison Division, and U.S. Attorney Jessica D. Aber for the Japanese District of Virginia. The investigation changed into led by the Federal Deposit Insurance protection Company Set up of business of Inspector Celebrated (FDIC OIG) Mid-Atlantic Area, the Department of the Treasury’s Special Inspector Celebrated for Pandemic Restoration, and IRS Prison Investigation (IRS-CI).
The case is being prosecuted by Trial Attorney David A. Peters of the Prison Division’s Fraud Half, along with Assistant U.S. Attorneys Drew Bradylyons and Katherine Robeson for the Japanese District of Virginia, with large assistance from the U.S. Attorney’s Set up of business for the District of Maryland.
