Nov. 9 , 2006

FRAUD SENTENCE
SENDS DEALER OF AUTOS, HEAVY EQUIPMENT
TO FEDERAL PRISON FOR 2 YEARS

KANSAS CITY, KAN. – A Kansas City man will spend 2 years in federal prison for defrauding finance companies and buyers of used autos and heavy equipment.

Randall A. Huffman, 42, of Richmond, Mo., was sentenced during a hearing Wednesday before U.S. District Judge John W. Lungstrum in Kansas City, Kan.

“Mr. Huffman also is ordered to pay $426,515 in restitution,” said U.S. Attorney Eric Melgren.

Huffman pleaded guilty in August to one count of interstate transportation of a security obtained by fraud. He admitted selling vehicles to customers of his company, Huffman Auto Sales in Richmond, Mo., promising to provide clear title when, in fact, he had already obtained financing on the purchase of those vehicles himself and he had not repaid the loans. As a result, customers were unable to obtain clear title to their vehicles and they could not sell or license their vehicles and, because the finance companies were unable to obtain possession of the vehicles, they were not able to recoup the amount owed on the loans to Huffman.

Huffman admitted that he obtained lines of credit from various finance companies including Automotive Finance Corporation (AFC) in St. Joseph, Mo., Greater American Acceptance Corporation (GAAC) in Kansas City, Kan., and Manheim Automotive Financial Services (MAFS) in Manheim, Penn. In some instances, he provided checks to the finance companies knowing that there were insufficient funds in his checking account to cover the checks. Upon receiving payment, the finance companies would provide him with clear title. After the bad checks were returned they discovered he had left the area and they were not able to locate the vehicles.

In a specific count to which he pleaded guilty, he fraudulently caused a check for $14,225 to be sent from Haviland State Bank in Haviland, Kan., to Bank Midwest in Richmond, Mo., representing loan proceeds for a 2002 Chevrolet Avalanche financed by GAAC.

Melgren commended the Federal Bureau of Investigation, which investigated the case, and Assistant U.S. Attorney Marietta Parker, who is prosecuting.

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