March 5, 2008
Huntington, WV (HNN) -- Fred Davis of Lesage, WV and Pittsburgh, PA, on Monday, March 3, 2008, pleaded guilty in U.S. District Court to one count of bank fraud and one count of engaging in an unlawful monetary transaction. His trial had been scheduled to begin the same day.
Davis, 55, had been indicted on 38 counts. At his plea hearing, Davis, who owned Davis Chrysler Plymouth Jeap Eagle, admitted to defrauding BB&T bank from July 2001 to December 2002 through a line of credit at the bank, according to the U.S. Attorney's Office of the Southern District of West Virginia. The fraud resulted in a loss between $2.5 million and $7 million, the U.S. Attorney's Office said.
The original indictment accused Davis of committing 20 counts of wire fraud, 17 counts of money laundering and one count of bank fraud when he was the president of Davis Chrysler Plymouth Jeep Eagle. He was sole owner of the dealership, located at 5210 U.S. Route 60 East, from 1997 until it was sold in 2003.
Davis will be sentenced in June. He faces 40 years in prison and could pay restitution of 15 million dollars.
Before selling his dealership, Davis headed a firm that acquired some landmark downtown Huntington properties including the St. James Hotel building and the River Cities LocoMotives, a now defunct franchise in the National Indoor Football League.