JACKSONVILLE, FL – James Elliott Davis, II (36, Ponte Vedra Beach) has confessed to a brazen fraud scheme that bilked investors out of millions by falsely claiming massive profits from the sale of COVID-19 personal protective equipment. The feds say Davis pleaded guilty today to bank fraud, wire fraud, money laundering, and theft of mail – a cocktail of charges that could land him behind bars for up to 30 years.
According to court documents unsealed today, Davis ran a sham outfit called Medisale Inc. from March 2018 through 2022. He pitched Medisale to investors as a booming medical supply company riding the wave of pandemic-era PPE demand. The pitch? Big contracts with hospitals, CEOs on speed dial, and mountains of cash rolling in from N95 masks and other critical supplies. He backed it all up with forged bank statements, painting a picture of wealth that simply didn’t exist.
The reality, the feds allege, was a house of cards built on deceit. Medisale had no legitimate contracts, no real revenue from PPE sales, and no actual business beyond fleecing investors. Davis allegedly engaged in classic “kiting” – bouncing checks and fraudulent wire transfers between banks to artificially inflate his account balances. The stolen money didn’t go to legitimate business expenses. Instead, it funded a lavish lifestyle.
Prosecutors say Davis used investor funds to pay off old debts, pay off earlier investors (a classic Ponzi scheme tactic), and indulge in personal extravagance. The details are particularly galling: a membership at a luxury club in Ponte Vedra Beach and a $27,000 shopping spree for custom clothing, all financed by the stolen money of unsuspecting victims. Davis now faces forfeiture of between $6.7 and $8.8 million – every penny traceable to the proceeds of his crimes.
The investigation was a joint effort by the Federal Deposit Insurance Corporation – Office of Inspector General, the Florida Department of Law Enforcement, and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Kevin C. Frein is leading the prosecution, with asset forfeiture handled by Assistant United States Attorney Jennifer M. Harrington. No sentencing date has been set, but Davis can expect a hefty prison term if the judge accepts the plea agreement.
The Justice Department is actively pursuing fraud related to COVID-19 relief programs and PPE sales. Anyone with information about potential scams is encouraged to report it to the National Center for Disaster Fraud (NCDF) at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Don’t become the next victim – report suspicious activity immediately.
RELATED: Ponte Vedra Fraudster Faces Life in Prison for $7M COVID-19 Scam
RELATED: Ponte Vedra Beach Man Indicted for COVID-19 PPE Fraud Scam
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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