Atlanta man accused of swindling GEICO out of nearly $6 million

ATLANTA — A 54-year-old man has been indicted by a federal grand jury in connection with a scheme to defraud GEICO insurance company.

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According to the Northern District of Georgia Attorney’s Office, GEICO was the majority owner, and Dwayne Peterson Davis, 54, of Atlanta, was the minority owner, of a limited partnership called PIS QOZ Fund 2018-A, LP.

In November 2018, GEICO gave $26 million to the partnership as an investment in Riverside Village, a commercial development in North Augusta, SC.

The attorney’s office said in April 2021, GEICO agreed to give another $5.91 million to the partnership to resolve a dispute involving unpaid taxes, a construction lawsuit, and foreclosure activities. GEICO wire transferred the $5.91 million to the partnership’s account—an account that Davis controlled—with the understanding that Davis would use the money solely to pay the taxes, settle the lawsuit, and stop the foreclosure proceedings, officials said.

After Davis took control of the $5.91 million, he allegedly began draining the account and secretly transferring money to accounts that he controlled at other banks.

In total, Davis transferred $5,898,000 out of the partnership’s account. Authorities said the transfers were allegedly made with the intent to rip off GEICO and the partnership.

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The attorney’s office said Davis eventually used some of the rerouted money to pay taxes owed by the partnership, but he never made the payments to settle the lawsuit or stop the foreclosure proceedings. He allegedly used the remaining money to pay off personal debts and expenses that did not involve the partnership or GEICO.

Davis was indicted on Tuesday by a federal grand jury for wire fraud and money laundering.

“This defendant allegedly took advantage of his business partners, violating their trust and deceiving them for his own personal gain,” said FBI Atlanta Assistant Special Agent in Charge Sean Burke. “Actions like these ultimately impact customers through higher insurance costs.”

The case is being investigated by the FBI.

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