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Former Car Dealer Gets 16 Months for Defrauding Credit Union

A former used-car dealer based in Oklahoma City will serve 16 months in prison and pay $276,000 in restitution. The man was charged with taking out duplicate loans on multiple vehicles.

by Staff
April 9, 2013
2 min to read


OKLAHOMA CITY — John B. Langley, 62, of Harrah, Okla., was sentenced to 16 months in prison for making a false statement to a federally insured credit union, announced Sanford C. Coats, United States attorney for the Western District of Oklahoma. In addition, Langley was ordered to pay $276,216.57 in restitution to his victims.

In 2008 and 2009, Langley owned and operated J&K Langley Corp., which sold used cars in Oklahoma City under the name Bargain Network Auto Sales. On June 5, 2012, Langley was indicted for fraudulently taking out duplicate loans on multiple vehicles. In particular, the indictment alleged that he borrowed money from the Municipal Employees Credit Union and pledged vehicles on his lot as collateral when he knew those vehicles were pledged to Floorplan Xpress, an inventory financing company.

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The indictment also alleged that Langley defrauded the credit union by selling collateralized vehicles and failing to give the proceeds to the credit union to satisfy his loans.

On Nov. 7, 2012, Langley pled guilty to giving a fictitious lien release letter on Floorplan Xpress letterhead to the Municipal Employees Credit Union on March 23, 2009, in connection with a loan for a 2009 Nissan Maxima.

This week, U.S. District Judge Joe Heaton sentenced Langley to serve 16 months in federal prison, based in part on the importance of protecting the integrity of financial institutions. Based on his plea agreement, the court ordered Langley to pay $200,806.57 in restitution to the Municipal Employees Credit Union and $75,410 to Floorplan Xpress. Langley was also ordered to serve five years of supervised release after he is released from prison.

This case was the result of an investigation conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.

 

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