Houston man sentenced to prison for $3 million PPP loan fraud

Scott Jackson Davis used the PPP loan money to fly on private jets, purchase luxury cars, jewelry and more, according to authorities.

Gravel at courtroom generic (sergeitokmakov/Pixabay.com)

HOUSTON – A Houston man was sentenced to 8 1/2 years in federal prison after being convicted of wire fraud, United States Attorney Alamdar S. Hamdani announced Friday.

Scott Jackson Davis, 47, pleaded guilty in 2022. After serving his prison sentence, he will be required to have three additional years of supervised release.

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Davis will also have to pay $3,002,655.13 for damages.

Authorities said the court heard evidence that Davis had been on supervised release in connection to another wire fraud conviction when the latest crime happened.

About four months had passed since he was released from prison when he started sending fraudulent Paycheck Protection Program applications, the U.S. Attorney’s Office said. PPP loans helped businesses continue to employ their workers during the pandemic.

Davis obtained $3.3 million in PPP loans through fraud. He submitted the fraudulent applications to several financial organizations.

Davis alleged he owned the following three businesses: Skilled Trade Investments LP, Skilled Trade Staffing LLC and Skilled Trade Investments Group.

He mentioned he had significant staff and a sizeable payroll. Authorities said he actually had a small amount of employees and “little to no payroll.”

Davis used fake Internal Revenue Service documentation to demonstrate the expenses of his businesses.

“Davis also lied on each of the PPP applications, indicating he had never been convicted of a felony,” the U.S. Attorney’s Office said.

The man has previously been convicted for wire fraud.

“Davis spent a large portion of the fraudulently acquired PPP loan funds on private jet travel, real estate, jewelry, guns and luxury vehicles. Davis will remain in custody pending transfer to a U.S. Bureau of Prisons’ facility to be determined in the near future,” the U.S. Attorney’s Office said.

U.S. District Judge David Hittner said in court that Davis was a danger to the community.

The FBI and Small Business Administration investigated the case. Assistant U.S. Attorney John Wakefield and Edward Emokpae, the Department of Justice Criminal Division Trial Attorney, prosecuted the case.


About the Author:

Cynthia Miranda graduated from UT Austin and is a proud Houstonian. She is passionate about covering breaking news and community stories. Cynthia previously covered elections, the historic 2021 Texas winter storm, and other news in East Texas. In addition to writing, she also loves going to concerts, watching movies, and cooking with her family.