August 25, 2023. Former dealership managers have plead guilty to federal fraud charges relating to documents that were falsified to secure loans for customers.
Two former employees of a South Carolina Mitsubishi dealership have plead guilty to federal fraud charges relating to the falsification of loan documents. The falsified document scheme was for the purpose of making customers appear to have better credit. The formal charges were against a former general manager and a former finance manage, and included conspiracy to commit wire fraud, bank fraud, and knowingly making false statements to a financial institution.
The former dealership employees were alleged to have falsified several types of documents, including sales contracts, down payment receipts, bank statements, paycheck stubs, proof of residency, utility bills, and other documents in order to cause vehicle loan application to be approved. The pair was also accused of listing phantom vehicle trade-ins and rebates as down payments on the retail installment sale agreements.
"General managers, general sales managers, finance managers, and others must avoid participating in falsification, including powerbooking", said Adam Crowell, President & General Counsel of ComlplyNet. "Not only do such actions result in regulatory enforcement actions, but violators rightfully get criminally prosecuted, fined, and prison sentences."
