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Multi-Million-Dollar Bank Scam Unravels in Georgia
ATLANTA – In a shocking revelation, two Georgia men, Franck Davidoff and Dwight Pearson, have been sentenced for their involvement in a multi-million-dollar bank fraud scheme that resulted in a loss of over $2,000,000 to Synchrony Bank.
According to Acting U.S. Attorney Kurt R. Erskine, the pair conspired to defraud Synchrony Bank from January 2017 until their arrest in October 2018. The scheme involved using stolen corporate information to open merchant bank accounts at Synchrony Bank, netting them over $2 million.
Specifically, in June 2018, Davidoff and Pearson opened a merchant account with Synchrony Bank in the name ‘S&G Carpet Stores,’ a real business that operates in the state of Florida. They used the CEO’s information to open the account and directed the bank to transfer any funds deposited into the S&G Carpet account into a separate merchant account opened in their own names.
The pair then established $600,000 worth of lines of credit for 57 individuals whose information they stole. The lines of credit appeared to be advance financing for large purchases from S&G Carpet. Once the money was deposited into the S&G Carpet account, it was immediately transferred to the secondary account.
Davidoff and Pearson conducted this scheme multiple times using multiple businesses, targeting businesses in Florida for the merchant accounts and residents in a wealthy neighborhood in Florida for the fake lines of credit. For this conduct, they were charged with a wire fraud conspiracy to defraud Synchrony Bank, 13 counts of wire fraud, and seven counts of aggravated identity theft.
Franck Davidoff, 34, of Milton, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19. Dwight Pearson, 49, of Johns Creek, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19.
Acting U.S. Attorney Erskine warned others who might follow their example that this conduct will be prosecuted. ‘These two defendants not only harmed the bank, but the pair also victimized countless businesses and individuals by stealing their information and posing as them to perpetrate a massive bank fraud scheme,’ he said.
U.S. Secret Service Special Agent in Charge Steven Baisel added, ‘The defendants in this case deliberately defrauded scores of innocent citizens out of millions of dollars for their own personal gain.’ He praised the help of their local law enforcement partners at the Duluth PD in successfully ending their criminal enterprise.
This case was investigated by the U.S. Secret Service and the Duluth Police Department. Special Assistant U.S. Attorney Diane C. Schulman and former Assistant U.S. Attorney Cassandra Schansman prosecuted the case.
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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