FOR IMMEDIATE RELEASE:
September 15, 2005
RALEIGH - United States Attorney Frank D. Whitney announced that DANNY ELROY DAVIS and EDMUND MARTIN GULEWICZ were indicted by a federal grand jury in Wilmington, N. C. on Wednesday, August 24, 2005.
The indictment charges DAVIS, 59, of 4199 Abbottsburg Road, Bladenboro, N. C., with one count of conspiracy to commit wire fraud, four counts of wire fraud, four counts of bank fraud, one count of custom violation, and four counts of false representation of Social Security Number. GULEWICZ, 60, of 32 Devon Drive, Pinehurst, N. C., is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of custom violation.
According to the indictment, in or around February 2003, DAVIS, owner and operator of Davis and Associates and Champion Auto Group, located in Whiteville, N. C., was not licensed to sell cars, nor was his business registered to operate in the State of North Carolina. In February 2003, DAVIS and GULEWICZ conspired to receive 16 vehicles from S&W United Auto Brokerage (S&W), located in Canada, totaling $375,000.00 knowing they were not entitled to said vehicles. GULEWICZ contacted S&W representing that he was DAVIS’ banker and forwarded a letter of credit reference for DAVIS
which was replete with false statements, including that DAVIS had a line of credit with his bank. Based on these representations made by DAVIS and GULEWICZ, S&W shipped 16 vehicles from Canada to Eastern District of North Carolina. Upon receipt of the vehicles, DAVIS quickly sold six of them and used the proceeds to pay his personal expenses and invested the money in other ventures. DAVIS signed six checks totaling $152,000.00, payable to S&W knowing that he did not have cash to cover the checks. Upon receipt of the checks, S&W was informed by DAVIS’ bank that there were insufficient funds to cover even the smallest of the checks. Further, DAVIS had placed a stopped payment request on five of the six checks. An S&W representative repossessed the remaining ten vehicles.
The indictment further alleges that beginning around April 2001, DAVIS devised a scheme to obtain and did obtain approximately $30,208.78 by false pretenses and false representations made to Anderson Brothers Bank, located in South Carolina, by providing false information on credit applications and using a false Social Security number.
The indictment also alleges that in approximately April 2000, DAVIS contacted Auto Enterprises, located in Michigan, and falsely represented that he was a North Carolina Certified Auto Dealer. Based on these false representations Auto Enterprises shipped over 40 automobiles from Michigan to the Eastern District of North Carolina. DAVIS eventually failed to send payments for some of the vehicles which caused Auto Enterprises to locate and recover said vehicles and sell them at a significant loss. Auto Enterprises suffered a total loss of $200,193.00.
The Federal Bureau of Investigation requests that anyone who has been a victim of the fraudulent schemes perpetrated by DAVIS and GULEWICZ or has information regarding their criminal activities to contact the Wilmington FBI Office at (910) 791-9393.
Investigation of the case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Felice McConnell Corpening is prosecuting the case for the United States.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. A trial date has not been set.
News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.