Former NIADA President Pleads Guilty

By Jeffrey Bellant September 02, 2020

Former National Independent Automobile Dealers Association President Andy Gabler faces up to 30 years in prison and a $1 million fine after pleading guilting to fraud conspiracy this week.

The U.S. Attorney’s Office in the Western District of Pennsylvania reported that Gabler, 51, of Harborcreek, Pa. and Chad Bednarski, 49, of Fairview, Pa. pleaded guilty on Sept. 1 to one count of fraud conspiracy before United States District Judge Susan Paradise Baxter.

Gabler, the 2018-2019 NIADA president, who resigned Jan. 31, 2019, after an FBI raid on his three dealerships and home a day earlier.

Andy Gabler
Andy Gabler faces up to 30 years in prision

According to a release from the U.S. Attorney’s Office, Gabler, as the owner of Lakeside Auto Sales and Lakeside Chevrolet, and Bednarski, as the finance manager of Lakeside Chevrolet, engaged in the following illegal activity between January 2015 and January 2019:

- Gabler falsely indicated that customers made down payments and falsified and inflated the income of customers when submitting auto loan applications to financial institutions on their behalf;

- Gabler sold extended warranties to customers buying vehicles at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payments to the extended warranty company;

- Gabler and Bednarski falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates, and;

- Gabler and Bednarski did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased using the bank’s floor plan financing, to delay and attempt to avoid the dealerships’ required payment for the sold vehicles.

Judge Baxter scheduled sentencing for January 6, 2021 at 10:00 a.m. for Gabler and 1:30 p.m. for Bednarski. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued Gabler and Bednarski on bond.

 

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Last modified on Wednesday, 02 September 2020 16:32

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