U.S. Department of Labor OIG, Richmond Man Sentenced for Successive COVID Fraud and Bank Fraud Schemes (USAO ED-VA 03/01/2024) (2024-03-05)

Summary

A press release from United States Attorney Jessica D. Aber, Eastern District of Virginia, dated March 1, 2024, announcing that Davon Hunter, 26, a Richmond man, was sentenced by Senior U.S. District Judge Henry E. Hudson to seven years in prison. According to court documents, Hunter submitted at least 23 fraudulent Paycheck Protection Program loan applications to at least four financial institutions for fictitious businesses, and Hunter and co-conspirators obtained over $500,000 in PPP loans. The release states that Hunter then turned to card cracking, with at least 16 altered checks deposited purportedly worth over $150,000. On October 31, 2023, Hunter pleaded guilty to one count each of conspiracy to commit wire fraud and conspiracy to commit bank fraud. A separate hearing on restitution and forfeiture was set for May 14.

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Full text

                          United States Attorney Jessica D. Aber
                               Eastern District of Virginia

FOR IMMEDIATE RELEASE
                                                                             Contact: Press Officer
March 1, 2024
                                                                         USAVAE.Press@usdoj.gov
EDVA.gov | @EDVAnews

                         Richmond Man Sentenced for Successive
                         COVID Fraud and Bank Fraud Schemes
RICHMOND, Va. – A Richmond man was sentenced yesterday to seven years in prison for
orchestrating successive schemes to defraud a COVID-19 relief program and steal funds through
altered checks.

According to court documents, Davon Hunter, 26, used Instagram and word of mouth to recruit
potential co-conspirators to provide their personal identifying information so that Hunter could
submit fraudulent applications to the Paycheck Protection Program (PPP), a COVID-19 relief
program that was intended to provide loans backed by the Small Business Administration to certain
businesses, nonprofit organizations, and other entities to help them retain their employees or stay
afloat during the pandemic. Hunter submitted at least 23 fraudulent PPP loan applications to at least
four financial institutions for fictitious businesses purportedly belonging to himself and 16 other co-
conspirators. For instance, these applications contained false and fabricated gross income figures
and false certifications that the businesses were in operation on February 15, 2020. Hunter and his
co-conspirators fraudulently obtained over $500,000 in PPP loans. In exchange for preparing the
fraudulent loan applications and supplying spurious supporting documents, Hunter demanded 25–
50% of each loan obtained by the co-conspirators.

When the PPP loan program ended in 2021, Hunter turned to “card cracking”—a scheme to defraud
financial institutions through the deposit of fraudulently altered stolen checks from small businesses.
Hunter and his co-conspirators recruited at least 16 accountholders to provide their debit cards and
personal identification numbers (PINs). They stole legitimate checks from various small businesses,
altered the checks to make them payable to accounts controlled by conspirators, and deposited at
least 16 altered checks purportedly worth over $150,000. Immediately after these deposits, they
conducted successive transactions to quickly access the credited funds before the banks determined
the deposits to be worthless. Despite knowing of the federal investigation, Hunter continued in his
card cracking schemes. At the time of his arrest, Hunter possessed two additional altered checks
purportedly worth over $27,000, along with several bank cards in the names of other people.

Even though he lacked verifiable, legitimate income throughout these schemes, Hunter flaunted his
fraud proceeds and luxurious lifestyle on social media. His Instagram account and bank records
reflect postings with thousands of dollars in cash and money orders and expenditures for expensive
jewelry, $26,000 purportedly for veneers, gambling, the purchase of luxury goods and clothing from
Dior, Saks, Louis Vuitton, Chanel and more, attendance at professional sports events, trips and
vacations throughout the country, and the purchase of a Range Rover.

On October 31, 2023, Hunter pleaded guilty to one count each of conspiracy to commit wire fraud
and conspiracy to commit bank fraud. A separate hearing to determine Hunter’s restitution and
forfeiture obligations will take place on May 14.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special
Agent in Charge of the FBI’s Richmond Field Office; Ajay D. Lall, Acting Inspector in Charge for
the U.S. Postal Inspection Service – Washington Division; and Troy W. Springer, Special Agent in
Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the
announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.

Assistant U.S. Attorney Carla Jordan-Detamore prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern
District of Virginia. Related court documents and information are located on the website of the
District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-
90.

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