Car Dealer Pleads Guilty in Financing Scam
The former operator of a West Texas dealership and two others are accused of devising a plan to approve loans for customers who did not meet a credit union’s lending standards. The credit union lost $3.9 million as a result of the scam.
MIDLAND, Texas — A car dealer pleaded guilty in a vehicle financing scam that cost My Community Federal Credit Union $3.9 million on more than 300 bogus loans, reports The Republic.
Raymond Holguin Jr., who operated Motor City, faces up to 30 years in prison for his part in the fraud. A sales manager and former loan officer with the credit union pleaded guilty to the same charge. All three are accused devising a plan to approve loans for customers who did not meet the credit union's lending standards.
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