JOHNS CREEK, Ga. — Two local men were sentenced Aug. 30 after pleading guilty to a fraud scheme which resulted in more than a $2 million loss for Synchrony Bank.
Acting U.S. Attorney Kurt R. Erskine said the two men, Dwight Pearson of Johns Creek and Franck Davidoff of Milton, conspired to defraud Synchrony Bank from January 2017 until they were arrested in October 2018 through a scheme that involved using stolen corporate information.
“These two defendants not only harmed the bank, but the pair also victimized countless businesses and individuals by stealing their information and posing as them to perpetrate a massive bank fraud scheme,” Erskine said. “We warn others who might follow their example that this conduct will be prosecuted.”
Pearson and Davidoff opened a merchant account with Synchrony Bank in June 2018 using the name of a real business that operates out of Florida. Using the CEO’s information, they opened an account for S & G Carpet Stores.
In the same instance, they ordered the bank to transfer all funds directed at the S & G account into a separate merchant account they opened in their names.
The two then moved to establish lines of credit for 57 individuals using stolen information totaling $600,000.
According to the Justice Department, the lines of credit, “appeared to be advance financing for large purchases from S & G Carpet. Once the money was deposited into the S & G Carpet account, it was immediately transferred to the secondary account.”
Pearson and Davidoff then repeated the process, defrauding various businesses and residents in Florida.
Both pleaded guilty to wire fraud conspiracy and aggravated identity theft.
Pearson, 49, was sentenced to seven years in prison, followed by three years of supervised release. He has also been ordered to pay upwards of $2.3 million in restitution for his crimes.
Davidoff, 34, was sentenced to six and a half years in prison, followed by three years of supervised release. Davidoff has also been ordered to pay restitution in the same amount as Pearson.