By SDCN Editor
A California man pleaded guilty Wednesday 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.
Craig David Davis, 49, of Venice, was the owner of Bright Vanguard LLC., which he held out as a computer hardware retailer and storage space provider. According to court documents, in 2020, Davis submitted at least two PPP loan applications and one MSLP loan application on behalf of Bright Vanguard. In those applications, Davis falsely claimed Bright Vanguard had substantial sales and as many as 17 employees. In reality, the company had no employees and no legitimate revenue. To substantiate his claims, Davis presented fraudulent tax returns, payroll documents, and financial statements to at least three different banks.
Davis also admitted to participating in a years-long scheme to defraud commercial equipment lenders using fraudulent invoices. He directed business owners to submit loan applications to banks to purchase computer equipment evidenced by 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. They then remitted the majority of the proceeds to applicant borrowers, keeping a portion for themselves, without providing the equipment shown on the invoices. The scheme caused more than $60 million of fraudulently induced lending across more than 350 separate loans.
Davis is scheduled to be sentenced on Dec. 12. He 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.
Anyone who is a victim in this case can contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.
