California Man Pleas Convicted of Defrauding CARES Legal Programs and Commercial Lenders
A California man, Craig David Davis, 49, of Venice, pleaded guilty to fraud charges in the Eastern District of Virginia. Davis admitted to defrauding multiple programs of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP), of more than $10 million.
Davis, the owner of Bright Vanguard LLC, which he misrepresented as a legitimate computer hardware dealer and storage provider, submitted fraudulent loan applications under the schemes in 2020. According to court documents, Davis lied about Bright Vanguard’s sales and employment. about 17 people. In fact, Bright Vanguard had no employees and no official revenue. To support his fraudulent claims, Davis provided banks with false tax returns, pay stubs, and financial statements.
In addition to the CARES Act fraud, Davis also admitted his involvement in a years-long scheme to defraud commercial real estate lenders. The scheme involved directing business owners to apply for loans to buy computer equipment, supported by invoices from companies such as Bright Vanguard. After lenders approve loans and disburse funds, Davis and his partners keep a portion of the proceeds while sending the majority to borrowers. No equipment was provided, despite what was shown on the fake invoices. The scheme resulted in more than $60 million in fraudulent loans across more than 350 different loans.
Davis is scheduled to be sentenced on December 12, 2024. He faces a maximum sentence of 20 years in prison. The final sentence will be decided by a district court judge, who will consider the US Sentencing Guidelines and other legal factors.
The announcement of Davis’ guilty plea was made by Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Division at the Department of Justice, and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. The investigation was led by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Mid-Atlantic Region, the Department of the Treasury Department’s Special Inspector General for Epidemic Detection, and the IRS Criminal Investigation (IRS-CI).
The case is being prosecuted by Attorney David A. Peters of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Drew Bradlyons and Katherine Robeson of the Eastern District of Virginia, with substantial assistance from the U.S. Attorney’s Office for the District of Maryland.
