Atlanta Man Indicted for Wire Fraud and Money Laundering in $5.9 Million Scheme
Dwayne Peterson Davis, 54, of Atlanta, Georgia, has been indicted by a federal grand jury on August 13, 2024, for wire fraud and money laundering in connection with an alleged scheme to defraud Government Employees Insurance Company (GEICO) of more than $5.9 million.
Davis, a minority owner of PIS QOZ Fund 2018-A, LP, a limited partnership with GEICO as the majority owner, is accused of misappropriating funds entrusted to him. In November 2018, GEICO invested $26 million in the partnership for the development of Riverside Village, a commercial project in North Augusta, South Carolina.
In April 2021, to resolve issues including unpaid taxes, a construction lawsuit, and foreclosure proceedings, GEICO transferred an additional $5.91 million to the partnership’s account, which Davis controlled. The transfer was made with the explicit understanding that Davis would use the funds exclusively for these designated purposes.
However, according to U.S. Attorney Ryan K. Buchanan, Davis allegedly began diverting the funds shortly after receiving them. He reportedly transferred $5,898,000 to personal accounts at other banks, not associated with the partnership. These transfers, which were not authorized by GEICO, were allegedly made with the intent to defraud.
While Davis used a portion of the funds to pay the Partnership’s tax liabilities, he did not settle the lawsuit or halt the foreclosure proceedings as required. Instead, he allegedly used the remaining money to cover his personal debts, finance personal expenses, and support unrelated business ventures.
FBI Atlanta Assistant Special Agent in Charge Sean Burke emphasized that such actions not only breach trust but also impact customers through increased insurance costs. The FBI is working with law enforcement to address financial crimes of this nature.
The indictment does not equate to a conviction; Davis remains presumed innocent until proven guilty in court. The investigation is ongoing, and Assistant U.S. Attorney John Russell Phillips is prosecuting the case.
