N.C. Auto Dealer, 30 Employees Indicted for Auto Loan Fraud
A former Charlotte, N.C.-area auto dealer and 30 of his employees have been indicted on charges of mail, wire and bank fraud involving customers' auto loans, reported the Wilmington Star News, based on a statement from U.S. Attorney Gretchen Shappert.
A former Charlotte, N.C.-area auto dealer and 30 of his employees have been indicted on charges of mail, wire and bank fraud involving customers’ auto loans, reported the Wilmington Star News, based on a statement from U.S. Attorney Gretchen Shappert.
The Five Star, South Boulevard and Monroe auto malls formerly operated by James F. Keating were named in the indictment.
The indictment estimated that between $6 million and $15 million in false and fraudulent loan applications were created and processed by the defendants between January 1998 and February 2004, sometimes with customers’ knowledge.
The Star News reported that the indictment said, "Fraud permeated the Keating dealerships and all employees were expected to do whatever was necessary to make a sale ... Keating pressured his finance managers and salespeople to do whatever was necessary to sell cars, even if the customers did not meet the financial qualifications to purchase a vehicle."
The court filing also charges that down payments on cars purchased at Monroe Auto Mall were frequently faked, with lending institutions sent documents that showed a false payment had been made.
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