Since 2020, Chilivis Grubman attorneys have closely monitored and documented indictments, guilty verdicts, and prison sentences tied to COVID-19 relief programs. Enforcement of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has spanned individuals and businesses nationwide, including NFL players, reality stars, business owners, and law enforcement personnel. Now, a California man has appeared in Alexandria, Virginia, facing charges for allegedly orchestrating a scheme to fraudulently obtain over $10 million in CARES Act loans.
The recent indictment of Craig David Davis, a 50-year-old resident of Marina Del Rey, California, highlights the challenges individuals may encounter in navigating relief initiatives like the CARES Act. Court documents allege that Davis submitted falsified tax documents and business records to secure loans from three different banks, including two Paycheck Protection Program (PPP) loans and one Main Street Lending Program loan.
Davis faces four counts of wire fraud, each carrying a maximum penalty of 20 years in prison, totaling a potential sentence of 80 years if convicted. However, an indictment is merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Nevertheless, this case underscores law enforcement agencies’ ongoing efforts to prosecute instances of COVID-19 funding-related fraud.
In response to the surge in pandemic-related fraud, the Attorney General established the COVID-19 Fraud Enforcement Task Force in 2021. Since the enactment of the CARES Act, the government has aggressively pursued hundreds of defendants and seized millions in cash, real estate properties, and luxury items obtained through fraudulently obtained PPP funds. The government has even gone as far as encouraging individuals with information regarding attempted COVID-19-related fraud to report it to their hotline.
At Chilivis Grubman, our attorneys represent clients of all sizes and types in white-collar criminal investigations and PPP investigations. If you need assistance with such a matter, please contact us today.