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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. […]

NextGear Capital sues defunct dealership for floorplan default

NextGear Capital has filed a complaint against a Canadian used-car dealership and its owner, claiming the dealership defaulted on its floorplan payments as a result of an alleged fraud scheme.  Fredericton, New Brunswick-based W&P Auto Sales and its owner Peter Kennedy entered into a floorplan financing agreement with NextGear Capital in March, according to court […]

Kentucky dealer leads $4m warranty fraud scheme

One Kentucky dealership owner and two co-conspirators have been charged with ten counts of fraud and identity theft used to facilitate a warranty scheme that racked up more than $4 million in losses for a "major" auto lender, the Department of Justice announced this week.    If convicted, the perpetrators each face up to 30 […]

California AG sues dealer for deceptive practices

California Attorney General Xavier Becerra is suing a used-car dealer for allegedly defrauding auto lenders and low-income Californians, according to court documents filed with the County of Alameda Superior Court. Paul Blanco, owner and CEO of Paul Blanco’s Good Car Co., operates seven used-car dealerships in California and two in Nevada. The dealership chain, which […]

FBI busts Porsche dealer in $3m fraud scheme

A former dealer for Pompano Beach, Fla.-based Champion Porsche has pled guilty to a fraud scheme racking up $3 million.  The fraudster, Shiraaz Sookralli, pled guilty to conspiracy to commit mail fraud and wire fraud. He is scheduled for sentencing on Nov. 14 and faces a maximum sentence of 20 years in prison, according to […]

Alabama dealer defrauds credit union

A Huntsville, Ala., man has been sentenced to 30 months in prison for bank fraud and tampering with vehicle odometers, the Department of Justice announced last week. He has been ordered to pay $109,000 in restitution, $28,000 in fines, and will spend three years in supervised release after serving out the term of his sentence. […]

Nissan dealership fined $2.8M for loan defaults

A federal judge has allowed Nissan Motor Acceptance Corp. to repossess 90 vehicles valued at $2.8 million from a dealership the captive sued for defaulting on loans and selling vehicles out of trust.  Helena, Mont.-based Robert Allen Nissan received loans from NMAC to purchase new and used vehicles for its inventory. Under the terms of […]
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