FI showroom red and grey logo
MenuMENU
SearchSEARCH

Auto Loans Were Falsified: FBI Affidavit

CHARLOTTE, N.C. -- Employees of a longtime area auto dealer have been accused of falsifying loans for more than five years.

by Staff
August 4, 2005
1 min to read


CHARLOTTE, N.C. -- Employees of a longtime area auto dealer have been accused of falsifying loans for more than five years. According to court documents obtained by The Charlotte Observer, the crimes include creating false employment and tax documents, and fake down payment checks, inflating customers’ incomes and increasing the loan values of vehicles.


Louis F. Harrelson, who has owned dealerships for 35 years, said he had been unaware of any wrongdoing by employees. After an internal investigation prompted by the FBI’s seizure of documents in June, Harrelson’s company fired seven employees, The Charlotte Observer reported.

Ad Loading...


The FBI affidavit named 15 current and former Harrelson employees. Also included was an employee at a Charlotte tax firm accused of creating false documents used by employees. Harrelson has promised to reimburse lenders.


The FBI isn't looking only at Harrelson's dealerships. Last week, a federal grand jury indicted Charlotte-area car dealer James Keating and 30 employees on charges of conspiring to falsify documents to qualify buyers for car loans totaling up to $15 million. Keating owned the Five Star, South Boulevard and Monroe auto malls.

Topics:Compliance

More Compliance

Photo of a man signing a paper at a desk while a man in a suit looks on

NADA and the Miracle on 34th Street

Automotive dealers should follow the National Automobile Dealers Association's consumer-friendly guidelines in order to minimize their legal risks.

Read More →
ComplianceFebruary 6, 2026

Another Look at a Recent Data Breach

Get caught up on the most pressing legal and regulatory matters facing dealers and F&I professionals, including data security, shotgun purchases, and inconsistent payment quotes.

Read More →
ComplianceNovember 26, 2025

Turnover and Compliance

Why ongoing training is a necessity

Read More →
Ad Loading...
ComplianceNovember 10, 2025

Singing a Gospel Song Backward

Crime and punishment in auto retail and how to avoid them

Read More →
ComplianceSeptember 26, 2025

The Best Thing a Dealer Can Do to Avoid Legal Problems

Citing the issue is a strategy borrowed from the legal field itself.

Read More →
ComplianceSeptember 15, 2025

Fines of the Times

Civil penalties for noncompliance with federal auto retail and finance rules and regulations can add up quickly. Use this checklist to cover your bases.

Read More →
Ad Loading...
ComplianceAugust 26, 2025

Goodwill and Car Dealers

A dealer goodwill tale is a cautionary tale worth paying attention to.

Read More →
ComplianceJune 30, 2025

The Regulatory Empire Is Striking Back

President Trump - entropist and corporate disruptor in consumer law

Read More →
ComplianceJune 26, 2025

How to Clear a Red Flag

Refine and enforce your dealership’s FTC-mandated ID theft-prevention program to ensure no transaction goes awry.

Read More →
Ad Loading...
ComplianceMay 22, 2025

So You Want a Compliance Audit

Be careful what you ask for … or what you get! Here are three critical components to review with your next compliance partner.

Read More →