Louisville Woman Sentenced to Over 5 Years in Federal Prison for Defrauding Customers

Louisville, KY - A Louisville woman was sentenced on June 15, 2026, to 5 years and 3 months in federal prison for eleven counts of wire fraud, one count of bankruptcy fraud, and five counts of money laundering.

U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Jefferson County Commonwealth's Attorney Gerina D. Whethers, Special Agent in Charge Olivia Olson of the FBI Louisville Field Office, and Acting Special Agent in Charge Bobby Kuszynski of the Internal Revenue Service Criminal Investigation, Detroit Field Office made the announcement.

Tracy Davenport, 51, was sentenced to 63 months in federal prison, followed by a 3-year term of supervised release, and ordered to pay restitution in the amount of $3,398,536.75 for eleven counts of wire fraud, one count of bankruptcy fraud, and five counts of money laundering. In or about and between May 2021 and December 2022, Tracy Davenport, and others working at her direction, engaged in a scheme to induce more than fifty customers into signing contracts for pool installation projects and paying large down payments up front, but did not build pools for them. Instead, Davenport used the customers' funds for purposes other than what was agreed upon.

United States Attorney Kyle Bumgarner stated, "Tracy Davenport defrauded numerous people. In attempting to conceal her crimes, she repeatedly lied to victims all the while knowing she had stolen their money. Her crimes caused financial hardships and significant emotional distress. I am very proud of the cooperative relationship we have with the Jefferson County Commonwealth's Attorney and our local, state and federal law enforcement partners. Those relationships lead to significant successes like the Davenport conviction and sentence."

Jefferson County Commonwealth's Attorney Gerina Whethers stated, "We hope this outcome provides a measure of closure and justice to the victims, who lost thousands of dollars and waited patiently for a resolution. The successful outcome reflects the hard work of all partner agencies. Thanks to the unwavering dedication of our detective and the exceptional work of the U.S. Attorney's Office for the Western District of Kentucky, this defendant will be held accountable."

"Ms. Davenport was a ruthless business owner who intentionally defrauded customers by promising to install a new pool, stealing their down payment, and never delivering a product," said Olivia Olson, FBI Louisville Special Agent in Charge. "Dishonest business practices have no place in our community, and the FBI will make every effort to work alongside our partners to identify and hold accountable fraudulent businesses."

"Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people's money as well as skirt their tax obligations," said Bobby Kuszynski, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. "Ms. Davenport's actions not only left customers without a product and service after paying a large sum of money, but also the honest taxpayer when she committed significant tax fraud violations. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system."

There is no parole in the federal system.

This case was investigated by the Federal Bureau of Investigation Louisville Field Office and the Internal Revenue Service Criminal Investigation, with assistance from the Louisville Metro Police Department, the Jefferson County Commonwealth's Attorney's Office, and the United States Trustee's Office for the Western District of Kentucky.

Assistant U.S. Attorney Nicole Elver prosecuted the case.

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