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Attorney Erik Johnson and Allen Denson of Hudson Cook discuss regulatory issues at the recent National Alliance of Buy-Here, Pay-Here Dealers conference.

Man Admits to Scamming Dealers

Man Admits to Scamming Dealers Featured

A Connecticut man was sentenced to 96 months of imprisonment, followed by three years of supervised release, for operating two separate fraud schemes, one involving buying and selling cars to dealers.
According to court documents and statements made in court, the first scheme involved the theft of postal money orders. Marc Alexander and others conspired to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich. Alexander, his wife Rachael Alexander, and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic.
The Alexanders, Bernard Harris and others then deposited the fraudulently imprinted postal money orders into numerous bank accounts, either at an ATM or at a teller window. Members of the conspiracy then withdrew and used the funds.
At times, members of the conspiracy also used the fraudulently imprinted postal money orders to make payments to other individuals.
The loss from this scheme was $313,570.
The second scheme involved the fraudulent sale of financed vehicles. The Alexanders took straw buyers to various car dealerships and had them fill out financing paperwork to buy high-end cars. Typically, the Alexanders would take the car and the straw buyers would sign a power of attorney form to allow them to obtain a new title for it.
The Alexanders would then contact the Connecticut Department of Motor Vehicles and claim that the title had been lost and they needed a replacement title. At the DMV, they would present a fake letter from the car financing company stating that the loan had been paid off in full.
After they received a new title, the Alexanders would sell the car to another dealer. The original car loans were not paid and went into default.
The straw buyers financed more than $1 million in fraudulent car loans during the course of this scheme.
Marc Alexander pleaded guilty to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of conspiracy to commit mail and wire fraud stemming from the vehicle scheme.
Rachael Alexander, also known as Rachael Vierling, and Bernard Harris have pleaded guilty and await sentencing.

Last modified on Tuesday, 18 April 2017 00:12
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