A Ponte Vedra Beach man has pleaded guilty to running a multi-million dollar fraud scheme that prosecutors say funded a lavish lifestyle, including memberships at exclusive beach clubs and thousands of dollars in custom clothing.
James Elliott Davis, II, 36, admitted in federal court to defrauding investors through a fake medical supply company called Medisale Inc., which he used to falsely claim profits from selling COVID-19 personal protective equipment.
In reality, the company had no contracts and generated no legitimate revenue from PPE sales, federal prosecutors said.
According to court documents, Davis’s scheme ran from 2018 through 2022.
He convinced marks to invest large sums of money by flaunting fraudulent bank statements, forged financial records, and false claims of major contracts with hospitals.
Davis claimed that Medisale was generating significant profits through the sale of N95 masks and other medical supplies during the pandemic.
In truth, there were no contracts. Instead, Davis used investor money to pay off earlier debts, issue fake “profits” to prior investors in a Ponzi-like structure, and finance his personal expenses.
Among his known purchases were memberships to exclusive luxury clubs in Ponte Vedra Beach and over $27,000 spent on custom designer clothing from Tom James.
Davis pleaded guilty to bank fraud, wire fraud, money laundering, and theft of mail. He faces a combined maximum sentence of 65 years in federal prison: up to 30 years for bank fraud, up to 20 years for wire fraud, up to 10 years for money laundering, and up to 5 years for theft of mail.
No sentencing date has been set.
Davis has also agreed to forfeit between $6.7 and $8.8 million, which federal authorities have traced to the proceeds of his fraudulent activities. Full restitution will be ordered for victims.
