May 23, 2018

AG Says Dealer Defrauded NextGear, Consumers, Creditors Featured

By Staff Writer May 03, 2018

A former Chicago dealer was charged with running a large-scale theft scam through his store and defrauding area residents and lenders of more than $1.5 million.


Donald T. Barclay, who now resides in Scottsdale, Ariz., was charged in Cook County Circuit Court with one count of identity theft over $100,000; one count of theft by deception over $1 million; one count of theft by unauthorized control over $1 million; three counts of theft over $500,000; one count of theft by deception over $100,000; as well as two counts of wire fraud.


The Illinois attorney general launched an investigation into Barclay, the former sole manager of Integrity of Chicago LLC, in February 2017, after her Consumer Fraud Bureau received complaints against Barclay and his business alleging a variety of fraudulent practices. The attorney general’s office was able to help a number of consumers pay off a portion of their original loans through the Illinois Dealer Recovery Trust Fund.


The attorney general alleges that at least 16 consumers were defrauded when Barclay failed to pay off their traded-in vehicle balances. According to the charges, Barclay’s scam also targeted three lenders, including BMW Financial Services, Gateway One Lending & Finance and Wells Fargo Dealer Services, which funded loans to the 16 consumers based on Integrity’s promise to pay off trade-in vehicle balances.


This portion of Barclay’s scheme resulted in a loss exposure of over $500,000.


The attorney general alleges that Barclay also targeted lender NextGear Capital Inc., which funded Barclay’s purchase of the vehicles listed on Integrity’s retail inventory floor plan. Beginning in late 2015 and continuing through May 2016, Barclay sold vehicles and received payment for a consumer’s purchase before requesting NextGear finance his purchase of the same vehicle, which was no longer in his inventory.


This allowed Barclay to pocket the proceeds of the sale twice – from the consumer’s lender and then from NextGear’s financing. Additionally, in response to NextGear’s inventory audits, Barclay falsely represented that certain vehicles were still in inventory and provided forged Bills of Sales that falsely reflected incorrect sales dates of the vehicles.


This portion of Barclay’s scheme resulted in a loss of more than $1 million to NextGear.

Last modified on Thursday, 03 May 2018 00:34