Boston man pleads guilty to fraudulently obtaining nearly $50K in covid-relief funds

BOSTON (WWLP) – On Tuesday, a Boston man pled guilty to fraud and false statements charges for fraudulently obtaining pandemic-related relief funds from the Paycheck Protection Program (PPP) as part of the Coronavirus Aid, Relief, and Economic Security Act.

In a plea agreement, Antawn Davis, 39, admitted to one count of wire fraud and one count of making false statements. The U.S. District Court Judge Julia E. Kobick scheduled the sentencing for Sept. 16, 2024. He was charged and arrested in February 2024 along with over 40 alleged Heath Street Gang members and associates who were charged with racketeering conspiracy, drug trafficking, firearm charges, and financial fraud, including fraud related to COVID.

A fraudulent PPP loan application was submitted by Davis in April and May 2021 on behalf of his purported business. Several false statements were contained in the applications, including the purported business’ total gross income in 2020 and the purpose of the loan. Furthermore, Davis submitted false tax records in support of his loan application. The fraudulent applications resulted in Davis receiving approximately $49,999 in PPP loans, which he spent on non-business-related expenses, such as transactions at a casino and at Saks Fifth Avenue.

A wire fraud conviction may result in up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. False statements are punishable by a maximum of five years in prison, three years of supervised release, and a $10,000 fine.