Riverside Village investor charged with wire fraud, money laundering

NORTH AUGUSTA, SC (WRDW/WAGT) – A Riverside Village investor has been indicted by the United States Attorney’s Office for wire fraud and money laundering, according to a news release.

According to the United States Attorney’s Office, Dwayne Davis, 54, was indicted by a federal grand jury in connection with a scheme to defraud his business partner, Government Employees Insurance Company (GEICO), of more than $5 million .

“Davis occupied a position of trust in his relationship with his business partner and allegedly abused that trust to facilitate and conceal his fraudulent conduct,” said U.S. Attorney Ryan K. Buchanan. “His alleged misappropriation of his business partner’s funds to pay personal expenses has Davis facing decades in federal prison.”

According to the indictment, GEICO was the majority owner and Davis was the minority owner of a limited partnership called PIS QOZ Fund 2018-A, LP.

In November 2018, GEICO contributed $26 million to the partnership as an investment in Riverside Village in North Augusta, according to the United States Attorney’s office.

In April 2021, GEICO agreed to contribute an additional $5.91 million to the partnership to resolve a multi-party dispute involving unpaid taxes, a construction lawsuit and foreclosure proceedings.

The U.S. Attorney’s Office says GEICO transferred the $5.91 million into the partnership’s account — an account Davis controlled — with the understanding that Davis would use the money only to pay taxes, settle the lawsuit and stop the foreclosure proceedings. enforcement.

GEICO did not authorize Davis to use the money for any other purpose, according to the U.S. Attorney’s Office.

The U.S. Attorney’s Office says that almost immediately after taking control of the $5.91 million, Davis allegedly began moving money out of the partnership account and secretly transferring it to accounts he controlled at other banks.

Davis transferred $5,898,000 from the partnership account, according to the United States Attorney’s office. These transfers did not serve a legitimate partnership purpose and were allegedly made with the intent to defraud GEICO and the partnership.

Officials say Davis used some of the embezzled money to pay taxes owed by the partnership, but never made the payments to settle the lawsuit or stop foreclosure proceedings. Instead, the release says, Davis used the remaining money to pay off personal debts and expenses and to pay business-related expenses that did not involve the partnership or GEICO.

Davis was indicted by a federal grand jury on Tuesday.

The case is being investigated by the Federal Bureau of Investigation.

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