A Northville, Michigan, man has pleaded guilty to organizing two related schemes to fraudulently obtain COVID-19 pandemic relief funds and federal tax credits.
James Davis, 49, pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the government with respect to claims, U.S. Attorney Jerome F. Gorgon Jr. said.
According to court records, Davis recruited people willing to provide their personal identifying information in exchange for a share of the fraudulently obtained funds. As part of the alleged schemes, authorities claim Davis and others obtained or attempted to obtain Paycheck Protection Program loans on behalf of businesses that were not entitled to receive them.
Federal prosecutors allege that Davis recruited people for an associated scheme involving the submission of fraudulent claims for sick and family leave credits and employee retention credits. Authorities allege those conspirators falsely claimed that people and businesses qualified for tax benefits when they did not.
In total, prosecutors claim that two alleged schemes resulted in $6,225,593.55 in false claims and received $4,398,366.01 in fraudulent benefits.
Davis is scheduled to be sentenced on March 8, 2027. He faces up to 20 years in prison on the wire fraud conspiracy count and up to 10 years on the conspiracy to defraud the government count.
A Northville, Michigan, man has pleaded guilty to organizing two related schemes to fraudulently obtain COVID-19 pandemic relief funds and federal tax credits. James Davis, 49, pleaded guilty to on...