NMAC wins $2.5m in floorplan fraud case | Auto Finance News | Auto Finance News

NMAC wins $2.5m in floorplan fraud case

The Nissan Motor Co. logo sits on display on day two of the 89th Geneva International Motor Show in Geneva, Switzerland, on Wednesday, March 6, 2019. The show near Lake Leman, which opens to the public from March 7 to 17, will be the first gilded showcase of the year for the likes of Bugatti, Koenigsegg, Lamborghini, and Pininfarina, among others. Photographer: Chris J. Ratcliffe/Bloomberg

A federal judge has ruled in favor of Nissan Motor Acceptance Corp. after it was determined a used-car dealership defrauded the captive on its floorplan loan by selling vehicles out of trust.

Helena, Mont.-based Robert Allen Nissan owes NMAC $2.5 million, plus attorneys fees and costs incurred by NMAC to date, according to a Nov. 5 filing with the U.S. District Court of Montana, Helena Division.

NMAC has initiated the process of collecting and disposing of the 90 vehicles in question — valued at $2.8 million — per a court order in July. The remarketing sales proceeds, minus expenses and costs, will be applied to the outstanding balance owed by Robert Allen Nissan, the documents noted.

According to a Feb. 22 complaint filed by NMAC, the dealership sold vehicles out of trust for months by keeping the proceeds – totaling $795,584 for 25 vehicles – and failing to pay them to NMAC.

 

 

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