Alfred Lenoris Davis, HELOC Fraud, Florida 2023

Alfred Lenoris Davis, a 51-year-old man from Miami, Florida, has pleaded guilty to charges stemming from a scheme in which he fraudulently obtained multiple home equity lines of credit (HELOCs) from various lenders by repeatedly using the same property as collateral.

According to the U.S. Attorney’s office, in June and July 2023, Davis engaged in a multi-lender fraud scheme by submitting false and misleading information to financial institutions in connection with HELOC applications. Davis submitted fraudulent tax returns and falsely represented that his property was free of other liens, even though he had already obtained and/or applied for other HELOCs secured by the same property.

The scheme allowed Davis to induce multiple lenders to extend approximately $1,257,500 in lines of credit under false pretenses. Davis used the fraudulently obtained loan proceeds for personal expenses and other purposes.

The defendant, Alfred Lenoris Davis, was charged with three counts of wire fraud and two counts of money laundering. If convicted, Davis faces up to 20 years in prison for each count of wire fraud and up to 10 years in prison for each count of money laundering.

A sentencing hearing is scheduled for July 24 in Miami. The case was investigated by the FBI Miami Field Office, and Assistant U.S. Attorney Jonathan Bailyn is prosecuting the case.

Assistant U.S. Attorney Sarah Klco is handling asset forfeiture. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20456.

The scheme highlights the need for lenders to conduct thorough background checks and verify information provided by borrowers. It also underscores the importance of the FBI’s efforts to investigate and prosecute financial crimes.

Alfred Lenoris Davis is due to be sentenced on July 24 in Miami. The outcome of the case will depend on the judge’s decision, but Davis faces the possibility of significant prison time if convicted.

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