Tag: fraud

By on September 16, 2016

werie

An Erie, Pennsylvania Buick-GMC dealer, its owner and general manager, and another man were indicted this week for wire fraud over a bogus loan application scheme.

A U.S. District Court handed down the indictment on Tuesday, Automotive News reports, with court documents alleging the three men submitted fake car loan applications through “straw individuals.” (Read More…)

By on August 8, 2016

004-2014-porsche-911-turbo

How do you buy an Arizona vacation home, a boat, two Porsches and an office building on a $210,000-a-year salary?

According to the CBC, the vice-president of information technology for the Alberta Motor Association managed to find a way, and it sure wasn’t legal. Jim Gladden is accused of draining $8.2 million from the AMA through fake invoices, then spending the money like a high-flying tycoon. (Read More…)

By on March 9, 2016

department-of-justice

After seemingly using up its legal arsenal against Volkswagen, the U.S. is pulling its backup out of an ankle holster and taking another shot.

That, Kia and Hyundai might get a Korean competitor, Mercedes-Benz is feeling charged up, Audi is still a fuel cell fan, and Volvo wants to standardize EV recharging … after the break!

(Read More…)

By on March 8, 2016

TDI Clean Diesel

There’s never a dull moment at Volkswagen, and today the automaker finds itself fighting battles on so many fronts they’ll soon be wishing for General Eisenhower’s plotting table.

As the company steels itself for further bad terrible financial news, German prosecutors have widened their probe into the diesel emissions scandal and targeted 17 Volkswagen employees.

The new headcount is a big jump from the earlier six suspects, and authorities have said they’re not done looking. So far, none hail from Volkswagen’s management board, but Klaus Ziehe, a spokesman for the state’s attorney’s office, has said that management involvement has not been ruled out. (Read More…)

By on February 12, 2016

Bentley Export courtesy of armstrongrelocation.wordpress.com

There’s not a more uncomfortable phone call for a car dealership’s finance manager to make then asking a customer to come back to have their finance or lease contract rewritten. This is typically caused by sales managers — the people most despised by finance departments — who spot deliver a vehicle based on their wrong guess about the rate or term a lender would approve the deal. Needless to say, the vast majority of these rewrites result in a higher monthly payment for the customer.

A couple of years ago, a finance manager at a Los Angeles Mercedes-Benz dealer told me and a Mercedes-Benz Financial colleague of mine about the day he picked up the phone to fix the opposite situation: the dealership had miscalculated the taxes on a client’s lease on a black ML350 Bluetec SUV and they needed the client to return and sign a new lease agreement reflecting payments of $14 per month lower than the original contract.

He called the customer with the good news only to hear, “No no no! Payment good. Payment good. We OK!”

After he hung up, he thought, “We just got snookered. That ML is probably on a slow boat to China and the factory is going to kill us.” (Read More…)

By on December 16, 2015

Matthias Müller

The European Union’s anti-fraud office is investigating Volkswagen for misusing publicly funded loans to develop illegally cheating software in its cars, the New York Times reported Wednesday.

Volkswagen was provided the low-interest loans by the European Investment Bank to develop engines that were more fuel-efficient and produce less carbon dioxide, according to the report. In September, the automaker admitted that 11 million vehicles worldwide polluted more than advertised and used an illegal “defeat device” to fool emissions tests.

The automaker’s woes compounded Wednesday: A European bank — partly funded by the U.S. — announced it would suspend a $327 million loan to Volkswagen that would have been used to build a $1.2 billion factory in Poland. That factory was slated to build commercial vehicles.

(Read More…)

By on November 26, 2015

Editor’s notes: One of the best reads of the year, there’s nothing like some Fargo-style forgery on a massive scale to liven up your afternoon. This piece originally ran September 3rd, 2015.

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

(Read More…)

By on September 3, 2015

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

(Read More…)

By on May 4, 2015

uber fashion shoot 02

Uber customers in the United States are the latest victims in a hacking scheme where Uber accounts are sold on the dark web for as little as $1.

(Read More…)

By on March 18, 2015

Lyft Driver with new glowstache in Los Angeles

A 22-page complaint filed against Lyft in federal court says the transportation network company reneged on a $1,000 bonus promised to new drivers.

(Read More…)

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