Recently it was announced by U.S. Attorney Barbara McQuade that 34-year-old Michael Davis of Detroit was sentenced to 40 months in prison and restitution after Davis engaged in a fraudulent scheme whereby he supplied luxury cars to drug dealers. IRS Criminal Investigation Special Agent in Charge Jarod J. Koopman and U.S. Secret Service Special Agent in Charge Jeffrey Frost joined McQuade in the announcement.
Davis pleaded guilty to one count of wire fraud and one count of money laundering, aiding and abetting according to court documents. Upon his release from prison, he will be on supervised release for three years for each count, to be served concurrently.
According to the press release, Davis recruited straw buyers to purchase vehicles including Porsches, Audis, Mercedes, BMWs, Cadillacs, and other luxury vehicles to be used in the scheme. In order to get financing for these luxury cars, the straw buyers would provide lenders with bogus financial information under Davis’ direction. After taking possession of the luxury cars, Davis ultimately removed the lender as a lien holder from the titles through a “washing” scheme involving a number of transactions before he and other working with him would sell the cars, often to criminals including drug dealers who wanted vehicles with unclear title histories.
In all, more than 45 luxury vehicles were fraudulently purchased using this scheme; financing of the vehicles totaled more than $2.2 million. Special Agent in Charge Jarod Koopman said that Davis is now facing the consequences of his actions after trying to defraud lenders for his own financial benefit while aiding criminals such as drug dealers.
Money laundering, wire fraud, and other “white collar” crimes can result in serious punishment for those accused of committing these serious financial crimes. If you have been arrested or are under investigation, consult with an experienced Michigan criminal defense attorney immediately.