A 54-year-old Georgia man was indicted Tuesday on charges of wire fraud and money laundering. Dwayne Davis, 54, of Atlanta, a minority owner in a partnership with GEICO, allegedly diverted $5.91 million intended for specific partnership expenses into his personal accounts.
The funds were meant to resolve tax issues, settle a lawsuit, and prevent foreclosure proceedings related to a commercial development project.
Instead, Davis allegedly used the money to pay off personal debts and fund unrelated business ventures.
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“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.
The indictment reveals that Davis was a minority owner in the PIS QOZ Fund 2018-A, LP, a limited partnership where GEICO was the majority owner. In November 2018, GEICO contributed $26 million to the Partnership as an investment in Riverside Village, a commercial development in North Augusta, South Carolina.
By April 2021, GEICO agreed to contribute an additional $5.91 million to the Partnership to resolve a multiparty dispute involving unpaid taxes, a construction lawsuit, and foreclosure proceedings. GEICO transferred the funds to the Partnership’s account, which Davis controlled, with the specific understanding that the money would be used exclusively to address the taxes, settle the lawsuit, and prevent foreclosure. Davis was not authorized to use the funds for any other purpose.
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However, shortly after receiving the $5.91 million, Davis allegedly began diverting the funds from the Partnership’s account to other bank accounts under his control, which were unrelated to the Partnership. In total, Davis is accused of transferring $5,898,000 out of the Partnership’s account for purposes that did not benefit the Partnership. These transfers were allegedly made with the intent to defraud GEICO and the Partnership.
While Davis did eventually use some of the diverted funds to pay the Partnership’s tax obligations, he failed to settle the lawsuit or halt the foreclosure proceedings as agreed. Instead, the remaining funds were allegedly used to pay Davis’s personal debts and expenses, as well as expenses related to other business ventures unconnected to the Partnership or GEICO.
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