A Ponte Vedra Beach man who told investors his medical supply company had landed massive N95 mask contracts with hospital executives was sentenced Thursday to more than seven years in federal prison, capping a case that stretched from a made-up pandemic business to fraudulent bank statements and a six-figure spending spree. James Elliott Davis II, 37, was ordered to pay back the millions he siphoned from victims who believed they were funding a booming PPE supplier.
U.S. District Judge Jordan Pratt handed down a sentence of seven years and seven months, or 91 months, and ordered restitution to all victims, according to the U.S. Department of Justice. The judgment also included a final forfeiture order of $6,726,800, representing what prosecutors say were the direct proceeds of Davis's crimes. As reported by Action News Jax, Davis ran the purported medical supply company Medisale Inc. beginning in March 2018, telling individuals and businesses the firm had contracts to sell large volumes of N95 masks and other PPE and was working with hospital CEOs.
A Company That Never Actually Sold Anything
The scheme ran from March 2018 through 2022, spanning the years when pandemic-driven shortages made medical supplies especially valuable to desperate buyers, per Action News Jax. Davis falsely claimed Medisale was making big profits and enticed individuals and businesses to invest large sums, the outlet reports. To back up those claims, he showed victim-investors fraudulent bank statements with large balances, insisting the money reflected proceeds from PPE sales.
Behind those numbers, prosecutors say, was nothing but manipulation. Davis engaged in check kiting and executed fraudulent ACH and wire transfers between multiple financial institutions specifically to artificially inflate account balances, according to the Department of Justice. Federal court documents reviewed by PacerMonitor show Davis served as president and registered agent of Medisale Inc., which also operated under the names Medisale International LLC and Medisale FL LLC, controlling a Wells Fargo corporate checking account used in the scheme.
Ponzi-Style Payouts Kept the Illusion Alive
Prosecutors detailed how Davis operated a Ponzi-style structure, using funds from new investors to pay off his own prior personal debts and to distribute fake profit payments to earlier investors, the Department of Justice said. That circular flow of cash let him maintain the appearance of a thriving business even though the company was generating no real revenue. Meanwhile, according to the department, Davis used victim-investor money to fund a lavish personal lifestyle, including a luxury beach club membership in Ponte Vedra Beach and more than $27,000 spent on custom clothing.
The case was investigated by the Florida Department of Law Enforcement, the Federal Deposit Insurance Corporation Office of Inspector General, and Internal Revenue Service Criminal Investigation, per Action News Jax. IRS Criminal Investigation Special Agent in Charge Ron Loecker said after sentencing that prosecuting pandemic-related fraud protects financial systems and ensures accountability for individuals who exploit national crises, as reported by WJXT.
From Indictment to Guilty Plea to Sentencing
Davis was originally indicted by a federal grand jury on May 15, 2024, facing 30 federal counts that included theft of mail alongside bank fraud, wire fraud, and money laundering, per PacerMonitor. He ultimately pleaded guilty to bank fraud, wire fraud, and money laundering, according to Action News Jax. U.S. Attorney Gregory W. Kehoe said the court judgment sends a clear message that fraudulent behavior will not be tolerated, adding that exploiting the fears of individuals and businesses for profit during a national crisis is untenable.
The prosecution was led by Assistant U.S. Attorney Kevin C. Frein, while asset forfeiture proceedings were handled by Assistant U.S. Attorney Alexander J. Penn, according to the Department of Justice. Hoodline previously reported on Davis's guilty plea in 2025, before Thursday's sentencing added the length of his prison term and the final forfeiture figure.
Part of a Larger National Crackdown
Davis's case adds to a broader pattern of pandemic-era fraud prosecutions nationwide. Federal enforcement against COVID-19 pandemic relief fraud has resulted in criminal charges against more than 3,500 defendants and over $1.4 billion in seized or forfeited funds through Department of Justice task force efforts as of 2024. Unlike many of those cases, which involved public relief programs such as PPP or EIDL loans, Davis's scheme instead targeted private investors and businesses by exploiting pandemic-driven shortages in medical supplies.
It remains an open question how much of the $6.7 million ordered in forfeiture and restitution will ultimately make its way back to the victim-investors who believed they were bankrolling a real PPE supplier.
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