Broomall Businessman Sentenced to 40 Months in Prison for Stealing PPP Funds and Tax Evasion
Summary
Christopher Davis, 32, of Haddon Heights, NJ, was sentenced by U.S. District Judge Harvey Bartle III to 40 months in prison and five years of supervised release and ordered to pay $267,859 in restitution for PPP fraud and tax evasion, according to a June 16, 2023 release from the U.S. Attorney's Office for the Eastern District of Pennsylvania. The release says Davis, who ran a property management business out of Broomall, Pennsylvania, filed no tax returns for 2016, 2017 and 2018, used about $230,000 of business money to buy four automobiles and charged over $326,000 in personal expenses to corporate credit cards. After that business failed, Davis applied in May 2020 for a $209,510 PPP loan, falsely claiming 20 employees and a monthly payroll of about $83,000. Republic Bank issued the loan, and Davis spent the proceeds on personal expenses, including a new Tesla.
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Press Release Broomall Businessman Sentenced to 40 Months in Prison for Stealing PPP Funds and Tax Evasion Friday, June 16, 2023 For Immediate Release U.S. Attorney's Office, Eastern District of Pennsylvania PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Davis, 32, of Haddon Heights, NJ, was sentenced to 40 months in prison and five years of supervised release and ordered to pay $267,859 in restitution by United States District Court Judge Harvey Bartle III, for unlawfully obtaining and misusing loan proceeds offered through the federal Paycheck Protection Program (“PPP”) and committing tax evasion. While operating a property management business out of Broomall, Pennsylvania in 2016, 2017, and 2018, Davis earned hundreds of thousands of dollars. Nonetheless, he willfully failed to file a tax return for each of these years and took actions to evade paying his personal income taxes, such as using approximately $230,000 from his business bank accounts to purchase four automobiles (including a Ferrari, a Range Rover, and a Mercedes Benz) for his personal use and utilizing corporate credit cards to charge over $326,000 in personal expenses, including trips to Italy, Monaco, Great Britain, Spain, France, and Greece. After this business failed, in May 2020 Davis filed a fraudulent PPP application in the name of one of his companies, seeking a $209,510 loan. In support of this application, Davis falsely claimed that he had 20 employees and paid a monthly salary of approximately $83,000 to these employees. He also submitted false documentation to support these fraudulent claims. As a result, Republic Bank approved Davis’ fraudulent application and issued him the PPP loan. Davis immediately began to spend the proceeds on personal expenses, including a new Tesla. “PPP funds were meant to help small businesses stay afloat during unprecedented adverse circumstances,” said U.S. Attorney Romero. “In fraudulently obtaining these funds and evading taxes, Davis took advantage of taxpayers and took valuable resources away from businesses and individuals who needed them.” “Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. "The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners." “Christopher Davis blatantly defrauded a government program meant to keep businesses and workers afloat during the pandemic, using the money for his own personal expenses,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our partners will continue to crack down on Covid con artists like Davis and hold them accountable for their actions.” The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray. Updated July 20, 2023 Component USAO - Pennsylvania, Eastern
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