FLORIDA – A South Florida businessman who used a Paycheck Protection Program loan to purchase a BMW M3 has been sentenced to federal prison, the U.S. Attorney’s Office for the Southern District of Florida (USAO) has announced.
Damian Davis, 41, of Broward County, has been sentenced in federal district court to 24 months in prison followed by five years of supervised release for bank and wire fraud as part of a scheme to defraud the Paycheck Protection Program (PPP) out of loan proceeds. The Honorable William P. Dimitrouleas ordered Davis to pay over half a million dollars in restitution.
According to court documents, in June and July 2020, Davis applied for PPP loans in the name of the following three companies, which he owns: Wolf of Flagler, LLC, of Fort Lauderdale, in the amount of $128,400; Crates Tavern, LLC, of Pompano Beach, in the amount of $183,780, and Fifth Marketing Group, LLC, of Pompano Beach, in the amount of $274,365.
As a result of these loan applications, Davis received a total of $586,545 in PPP funds, which he used for his personal benefit, said the USAO.
For example, in one loan application, Davis listed a loan amount of $274,365 and an average monthly payroll of $109,746. He falsely certified the company’s number of employees and payroll payments, the USAO said.
Also, he falsely certified that the funds would be used to support the ongoing operations of the company.
According to prosecutors, after receiving the PPP loan proceeds, Davis did not make any payroll, rent, utility, or mortgage interest payments. Instead, he used the PPP funds to purchase a car. On August 28, 2020, Davis wired $31,000 from the PPP loan proceeds for the alleged purchase of “equipment.” However, Davis did not buy any equipment; he purchased a 2001 Blue BMW M3.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, announced the sentence imposed by U.S. District Judge Dimitrouleas.
IRS-CI Miami investigated the case with assistance from the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region. Assistant U.S. Attorney Bertila Lilia Fernandez prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-60186.
