Fort Lauderdale businessman raked in pandemic loans, but splurged on ‘Bimmer,’ himself
As the coronavirus spiked, a Fort Lauderdale man who claimed to have a marketing business with dozens of employees asked the federal government for hundreds of thousands of dollars in COVID-19 relief loans.
In short order, Damian Davis received $586,545 in a series of bank-approved loans for that business and two others over the summer of 2020. But he didn’t spend the money on employees and other overhead as required under the Paycheck Protection Program approved by Congress as part of the CARES Act to keep the economy afloat.
Davis, 41, spent the emergency funds on himself, including buying a 2001 Blue BMW M3 for $31,000, according to his plea agreement on fraud charges in Fort Lauderdale federal court. By PPP loan fraud standards, that exotic car purchase paled next to the usual acquisitions of Lamborghinis, Bentleys and Teslas with ill-gotten pandemic loans.
Still, the convicted marketer was sentenced this week to two years in prison, joining the ranks of hundreds of illicit business people, gang members and other offenders who have been swept up in the feds’ crackdown on PPP loan fraud in South Florida.
According to court records, Davis operated three marketing firms that applied for pandemic loans meant for struggling businesses: Wolf of Flagler LLC, in Fort Lauderdale, $128,400; Crates Tavern LLC, Pompano Beach, $183,780; and Fifth Marketing Group LLC, Pompano Beach, $274,365.
Earlier this year, Davis pleaded guilty to bank and wire fraud charges stemming from the third PPP loan application for Fifth Marketing.
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In a factual statement filed in federal court, Davis admitted falsifying information about Fifth Marketing’s number of employees, payroll and other overhead costs such as rent on a PPP loan application in July 2020. He said the company had 26 employees and monthly revenue of $109,746 — both lies, the statement said.
Davis also used a tax preparer who wrote up falsified tax forms to submit with his PPP loan application, which was approved by an unnamed bank. The loan for Fifth Marketing would be guaranteed by the Small Business Administration, as long as the funds were used for legitimate business expenses.
They weren’t, the feds say.
”After receiving the PPP loan proceeds, the defendant did not make any payroll payments,” according to the factual statement signed by Davis, defense lawyer Carlos Gonzalez and prosecutor Bertila Fernandez. “He misused the funds.”
”On August 28, 2020, the defendant wired $31,000 to R.E.S. for the alleged purchase of ‘equipment,’ the statement said. “However, the defendant did not buy equipment; he purchased a 2001 Blue BMW M3. The BMW was titled in the defendant’s name.”
