More Complainants Come Forward in Davison Fraud Case

By Katie Hauser

Published on November 09, 2006

The recent addition brings to 11 the number of those thought to have been defrauded by Davison. Investors are believed to have lost more than $6 million.

The auditor's office accused Davison of asking investors for loans to start a business, then using the money to pay back previous investors. The most recently identified investors, an elderly couple formerly from Billings, say that they loaned Davison $165,000, but only received $16,845 in interest payments.

The former financial advisor used his affiliation with the Catholic Church to gain the confidence of investors. He also gained trust when he ran for the Republican nomination for governor in 2004 and served as finance chairman for a Montana Senator.

Davison’s financial license was terminated in 2003 when he resigned from his position as a financial advisor with UBS Paine Webber, but prosecutors claim he continued to sell securities.

Davison is facing legal action from the auditor's office and has been served with multiple lawsuits from those who invested with him. If he is indicted by a federal grand jury and convicted, he could be sentenced to federal prison.

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