A fraud scheme racking up more than $5 million from auto financiers has been busted after an 18-month investigation identified 21 perpetrators operating in an organized crime ring, according to the San Diego County District Attorney’s office.
More than 100 vehicles — ranging from high-end luxury vehicles to RVs — were stolen in the scheme. Investigations found that the perpetrators formed 54 shell companies and opened 45 bank accounts with different auto financiers to facilitate the fraud. The district attorney did not identify the auto lenders.
However, the ringleader of the organized fraud ring was identified as Bryan Orr, according to the San Diego Regional Auto Theft Task Force (RATT), which lead the investigations. Under Orr’s direction, co-conspirators would participate in “straw buying,” which means they would use fraudulent identities to purchase and finance new vehicles.
Once the purchaser received the title to the car, the perpetrators would sell the vehicle to another co-conspirator for cash. Then the person who bought the car would claim their accounts were used for fraud and request refunds from the bank. The funds would be withdrawn and passed on to Orr, with the co-conspirators receiving a percentage of profit for their efforts.
To make the co-conspirators appear legit, Orr would create fake websites and documentation. One co-conspirator created false financial documentation that enabled the purchase of vehicles by consumers with little or no income. Many co-conspirators were also involved in the sale and purchase of credit bureau “trade-lines,” which would create a false sense of creditworthiness for lenders, the district attorney noted.
The fraudsters participated in money laundering, grand theft, and auto theft, racking up more than 275 felony counts. Investigations are still ongoing.
If convicted, Orr faces more than 100 years in prison.
