Former CEO of Strong City Baltimore allegedly submitted fraudulent COVID-19 loan applications
BALTIMORE -- The former CEO of Strong City Baltimore has been charged with committing wire fraud and money laundering for allegedly misusing COVID-19 funds.
A federal grand jury returned an indictment accusing 40-year-old Reginald Davis of submitting fraudulent COVID-19 CARES Act loan applications on August 3.
Davis made an initial appearance in U.S. District Court on Wednesday, pleading not guilty to the charges, according to WJZ's media partner, the Baltimore Banner.
His defense attorney declined to comment, the Baltimore Banner reported.
"Davis allegedly stole well over one million taxpayer dollars intended to assist those suffering from the effects of the pandemic," Erek Barron, the U.S. Attorney for the District of Maryland, said. "It remains a top priority of my office to hold accountable those who took unfair advantage of the COVID-19 pandemic relief."
If convicted, Davis faces a maximum sentence of 20 years in federal prison for wire fraud. Additionally, he faces a maximum of 10 years in federal prison for each of two counts of money laundering, according to state authorities.