Craig David Davis, Wire Fraud, Virginia 2023

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Craig David Davis Pleads Guilty to Wire Fraud

Craig David Davis, a 49-year-old man from Venice, pleaded guilty today in the Eastern District of Virginia to wire fraud for defrauding Coronavirus Aid, Relief, and Economic Security Act programs, including the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP), of more than $10 million.

According to court documents, Davis submitted at least two PPP loan applications and one MSLP loan application on behalf of Bright Vanguard LLC, a company he owned, which he held out as a computer hardware retailer and storage space provider. In these applications, Davis falsely claimed Bright Vanguard had substantial sales and as many as 17 employees. In reality, Bright Vanguard had no employees and no legitimate revenue.

Davis admitted to presenting fraudulent tax returns, payroll documents, and financial statements to at least three different banks to substantiate his claims. This scheme caused significant losses to the banks and the federal government.

In addition to the PPP and MSLP scheme, Davis also admitted to participating in a years-long scheme to defraud commercial equipment lenders using fraudulent invoices. Davis directed business owners to submit loan applications to banks to purchase computer equipment evidenced on invoices they received from companies such as Bright Vanguard.

The lenders approved the loans and submitted the proceeds to accounts controlled by Davis or his co-conspirators. Davis and his co-conspirators then remitted the majority of the proceeds to applicant borrowers, keeping a portion for themselves, without providing the equipment shown on the invoices. This scheme caused more than $60 million of fraudulently induced lending across more than 350 separate loans.

Davis is scheduled to be sentenced on December 12 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The investigation was conducted by the Department of the Treasury’s Special Inspector General for Pandemic Recovery, the IRS-Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General, with significant assistance from the Consumer Financial Protection Bureau’s Office of Inspector General. The case is being prosecuted by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Virginia.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.