Rodolfo Gutierrez, Jr. Pleads Guilty in U.S. Federal Cour
The United States Attorney's Office announced that during a federal court session in Billings on March 1, 2010, before Chief U.S. District Judge Richard F. Cebull, RODOLFO GUTIERREZ, JR., age 50, formerly of Billings, pled guilty to bank fraud. Sentencing has been set for June 9, 2010. He is currently released on special conditions.
In an Offer of Proof filed by First Assistant U.S. Attorney Kurt G. Alme, the government stated it would have proved at trial the following:
GUTIERREZ was the majority owner of Incredible Auto Sales, LLC ("IAS"). IAS sold new and used vehicles, doing business under the names "New Beginnings" and "Incredible Kia," in Billings. IAS had an inventory flooring loan agreement with Hyundai Motor Finance Company ("HMFC").
Net-Works Ad Agency, Inc. ("Net-Works") was the personal corporation of GUTIERREZ and his wife. On May 19, 2005, GUTIERREZ and his wife, on behalf of Net-Works, entered into an inventory flooring loan agreement ("Loan Agreement") with Little Horn State Bank ("LHSB").
GUTIERREZ had employees sell vehicles which had been floored with LHSB, and not timely repay LHSB, causing Net-Works to be "out-of-trust" with LHSB. GUTIERREZ directed employees to provide false information during inventories conducted by LHSB, to deceive LHSB into concluding that repayment was not late.
Beginning on August 29, 2005, GUTIERREZ had employees double floor vehicles. The last double floor ended in November of 2006. The vehicles were floored with LHSB and with HMFC at the same time. In addition, GUTIERREZ had employees floor vehicles with LHSB that had been received on trade-in and which had liens against them from previous loans.
GUTIERREZ also had employees floor vehicles with LHSB which were not owned by Net Works or IAS because they had already been sold to customers or were owned by another entity.
GUTIERREZ faces possible penalties of 30 years in prison, a $1,000,000 fine and 5 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
A copy of the Offer of Proof can be obtained by contacting Sally Frank at (406) 247-4638.