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Feds say Harris County man used $3.3 M in fraudulently acquired PPP loans to buy luxe cars, jet travel, real estate

Feds say Harris County man used $3.3 M in fraudulently acquired PPP loans to buy luxe cars, jet travel, real estate
Written by Publishing Team

Harris County, Texas A Harris County man was arrested Tuesday, accused of fraudulently obtaining more than $3.3 million in funds through the government’s coronavirus check protection program.

The Justice Department said, on Tuesday, that the man spent the money on luxury cars, private jet travel and real estate.

The US government has offered PPP loans as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to help companies manage the financial pressures caused by the pandemic.

Scott Jackson Davis, 46, fraudulently submitted PPP loan applications to three companies he claimed to represent: Skilled Trade Investments LP (STILP), Skilled Trade Staffing LLC (STS), and Skilled Trade Investments Group LLC (STIGP).

According to the authorities, Davis was able to obtain more than $3.3 million in funds by claiming that the three companies had too many employees and significant salary expenses. In fact, the companies had few, if any, employees and little payroll expenses, the Department of Justice said.

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Davis is accused of electronic fraud, bank fraud and money laundering.

Previously, in April 2017, Davis pleaded guilty to wire fraud — a conviction that conviction authorities say deliberately lied about his PPP loan applications.

Davis appeared in court for the first time on Tuesday. If convicted, he faces a maximum sentence of 30 years in prison for each bank fraud charge, 20 years in prison for each electronic fraud charge, and 10 years in prison for each money laundering charge.

Anyone with information about allegations of attempted fraud involving COVID-19 relief funds are urged to report them by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or via a web complaint form. NCDF at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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