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N.C. Dealer Sentenced for Loan Fraud

June 28, 2006

A former Charlotte, N.C.-area dealer was sentenced to three years in federal prison after pleading guilty to conspiracy to commit mail fraud. Ten of his employees were also sentenced for their roles in cheating lenders and causing customers to have inflated vehicle payments they couldn’t afford, reported The Associated Press.

A former general manager was sentenced to two years in prison for using his laptop to generate false pay stubs, Social Security benefits letters, tax returns and other documents that inflated a buyer’s income.

The indictment claimed that the dealer and 30 auto dealership employees created and processed between $6 million and $15 million in fraudulent loan applications between January 1998 and February 2004.

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