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

NMAC wins $2.5m in floorplan fraud case

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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