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Ponte Vedra Beach Man Indicted for COVID-19 PPE Fraud Scam
Jacksonville, Florida – In a shocking display of greed, James Elliott Davis II, a 35-year-old Ponte Vedra Beach resident, has been indicted on 29 counts of bank, wire, and mail fraud in connection with a COVID-19 Personal Protective Equipment (PPE) scam. If convicted, Davis faces up to 30 years in federal prison for each count of bank fraud, up to 20 years in prison for each count of wire fraud, up to 10 years in prison for the money laundering count, up to 5 years’ imprisonment on the theft of mail count, and payment of restitution to the victims he defrauded.
According to court documents, from March 2018 through 2022, Davis ran a purported medical supply company named Medisale, Inc. By using false representations, Davis enticed individuals and business entities to invest over $7 million in Medisale. He falsely represented to victim-investors that Medisale was making significant profits on the sale of COVID-19 PPE. He claimed to have contact with CEOs at various hospitals and that Medisale had contracts with hospitals to sell large volumes of N95 masks and other PPE.
As part of his sales pitch, Davis showed bank statements with large balances, claiming the money was from the sale of PPE. But in reality, Medisale had no such contracts and had no true revenue from the sale of PPE. Davis kited checks and conducted fraudulent ACH/wire transfers between multiple financial institutions to artificially inflate the apparent balances on his bank accounts.
Utilizing victim-investor money, Davis paid off previous debts, paid other investors purported profits from the sale of PPE, and paid for personal expenses. This included Davis using victim-investor money to purchase a membership at a luxury club in Ponte Vedra Beach and spending more than $27,000 on custom clothing.
The indictment marks a significant blow to Davis’s elaborate scheme, which netted over $7 million from unsuspecting investors. The case serves as a stark reminder of the importance of due diligence and the devastating consequences of falling victim to investment scams.
The Federal Deposit Insurance Corporation – Office of Inspector General, Florida Department of Law Enforcement, and the Internal Revenue Service – Criminal Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Kevin C. Frein. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case against Davis is a testament to the tireless efforts of law enforcement agencies and prosecutors who work tirelessly to bring perpetrators of financial crimes to justice. As the investigation continues, it is clear that Davis’s actions will have far-reaching consequences for those affected by his scheme.
The indictment highlights the need for increased vigilance in the face of investment scams, particularly those involving COVID-19-related goods and services. As the nation continues to navigate the complexities of the pandemic, it is essential that individuals and businesses remain cautious and informed to avoid falling victim to similar schemes.
RELATED: Ponte Vedra Fraudster Faces Life in Prison for $7M COVID-19 Scam
RELATED: Henry Thomas Hammond Sentenced in $2.2M Fraud Scheme
Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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