Dwayne Davis has been indicted by a federal grand jury for wire fraud and money laundering in connection with a scheme to defraud his business partner, Government Employees Insurance Company (GEICO), of more than $5 million.
“Davis occupied a position of trust in his relationship with his business partner and allegedly abused that trust to facilitate and conceal his fraudulent conduct,” said U.S. Attorney Ryan K. Buchanan. “His alleged diversion of his business partner’s funds to pay personal expenses has resulted in Davis potentially facing decades in federal prison.”
“This defendant allegedly took advantage of his business partners, violating their trust and deceiving them for his own personal gain,” said FBI Atlanta Assistant Special Agent in Charge Sean Burke. “Actions like these ultimately impact customers through higher insurance costs. The FBI will continue to partner with law enforcement partners to pursue those who commit financial crimes and steal from trusting individuals."
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: GEICO was the majority owner, and Davis was the minority owner, of a limited partnership called PIS QOZ Fund 2018-A, LP. In November 2018, GEICO contributed $26 million to the Partnership as an investment in Riverside Village, a commercial development in North Augusta, South Carolina.
In April 2021, GEICO agreed to contribute another $5.91 million to the Partnership to resolve a multiparty dispute involving unpaid taxes, a construction lawsuit, and foreclosure proceedings. GEICO wire transferred the $5.91 million to the Partnership’s account—an account that Davis controlled—with the understanding that Davis would use the money solely to pay the taxes, settle the lawsuit, and stop the foreclosure proceedings. GEICO did not authorize Davis to use the money for any other purpose.
But almost immediately after taking control of the $5.91 million, Davis allegedly began siphoning off money from the Partnership’s account and secretly transferring it to accounts that he controlled at other banks—accounts that were not related to the Partnership. In all, Davis surreptitiously transferred $5,898,000 out of the Partnership's account. Those transfers served no legitimate Partnership purpose and were allegedly made with the intent to defraud GEICO and the Partnership.
Davis eventually used some of the diverted money to pay taxes owed by the Partnership but never made payments to settle the lawsuit or stop foreclosure proceedings. Instead, he used remaining funds for personal debts and expenses unrelated to either GEICO or their joint ventures.
Dwayne Peterson Davis was indicted by a federal grand jury on August 13th. Members of public are reminded that an indictment only contains charges; defendant is presumed innocent until proven guilty beyond reasonable doubt at trial.
This case is being investigated by Federal Bureau Investigation.
Assistant U.S Attorney John Russell Phillips is prosecuting case.
For further information please contact U.S Attorney Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
Internet address for U.S Attorney Office Northern District Georgia is http://www.justice.gov/usao-ndga