Atlanta man indicted for scheme to defraud GEICO of $5M

ATLANTA - Dwayne Davis, 54, of Atlanta, has been indicted by a federal grand jury on charges of wire fraud and money laundering, following allegations that he defrauded GEICO, his business partner, of over $5 million. 

Davis, who held a minority ownership in the PIS QOZ Fund 2018-A, LP—a partnership with GEICO—allegedly diverted nearly $5.9 million intended to resolve legal disputes related to a commercial development project in North Augusta, South Carolina. 

According to the indictment, in April 2021, GEICO transferred the funds to the partnership's account, which Davis controlled, under the agreement that the money would be used exclusively to pay taxes, settle a construction lawsuit, and stop foreclosure proceedings. However, Davis allegedly began siphoning the money into personal accounts at other banks, unrelated to the partnership, almost immediately after receiving the funds.

The indictment claims Davis used the misappropriated funds to cover personal debts and expenses, as well as to fund other business ventures unrelated to GEICO or the partnership. While he did eventually pay the overdue taxes, he allegedly failed to make the required payments to settle the lawsuit or prevent the foreclosure, leaving the partnership at risk.

U.S. Attorney Ryan K. Buchanan highlighted the seriousness of the alleged offenses, noting that Davis had occupied a position of trust within the partnership and had allegedly abused that trust for personal gain. FBI Atlanta Assistant Special Agent in Charge Sean Burke added that such fraudulent actions have broader impacts, potentially leading to higher insurance costs for consumers.

Davis was indicted on Aug. 13, 2024, but it is important to remember that an indictment is merely an accusation, and Davis is presumed innocent unless proven guilty. The case is being investigated by the FBI, and Assistant U.S. Attorney John Russell Phillips is leading the prosecution.