DEPARTMENT OF JUSTICE

United States Attorney
Gretchen C. F. Shappert
Western District of North Carolina

FOR IMMEDIATE RELEASE
WEDNESDAY, DECEMBER 17, 2009

CONTACT: Suellen Pierce
704.338.3120
Fax: 704.227.0264

TEN FORMER EMPLOYEES OF HARRELSON AUTOMOTIVE GROUP INDICTED IN CONNECTION WITH FRAUD CONSPIRACY One-Count Indictment Alleges Conspiracy to Commit Mail, Wire and Bank Fraud CHARLOTTE, NC - U.S. Attorney Gretchen C.F. Shappert and Special Agent in Charge of North Carolina FBI Operations Nathan T. Gray announced today the indictment of ten former employees of the Harrelson Automotive Group for conspiracy to commit mail, wire and bank fraud, in violation of 18 U.S.C. Section 371. Named in the indictment are: Carla Lowry, Rene Acuna, Angelia Osborne, Edward McCray, Daryl Floyd, Wayne Carraway, Steve Hayley, Robert Abbott, Jeff Taylor, and Richard Albino. Each of the defendants named in an indictment returned by a federal grand jury on Tuesday was formerly employed by one or more of the Harrelson automotive dealerships, located in the Charlotte area, as a manager, supervisor, or salesperson.

According to the indictment, between January 1999 and July 2005, the defendants conspired with each other and others to defraud lending institutions in order to obtain financing for vehicle sales. Among the fraudulent practices engaged in by the defendants were the falsification of down payments through the use of what was characterized as an “in-house rebate” when, in fact, the customers were never actually provided a rebate or provided any funds by the dealership to make a down payment; the falsification of down payments through fictitious or grossly inflated values for trade-ins; the inflation or complete fabrication of the customer’s gross monthly income on loan applications; and the use of fictitious employment histories to support falsified incomes. These practices, which, according to the indictment were engaged in by the defendants during the course of the alleged conspiracy, were intended to avoid losing a sale to a customer who might not otherwise qualify for a loan to purchase a vehicle.

Because of the falsely inflated incomes used on the applications, many customers were unable to make the monthly payments on the purchased vehicles, resulting in the repossession of the vehicle and a financial loss to the lending institution. And because a number of customers had no personal financial investment in the vehicle through a legitimate down payment, they simply stopped making payments on the vehicles when the loans became financially burdensome, again resulting in losses to the lending institutions. According to the
indictment, the total losses to the lending institutions as a result of the defendants fraudulent practices exceeded $1.2 million.

The charges contained in the indictment are only allegations. In the American justice system, a person is presumed innocent unless and until he or she is proven guilty at trial or by guilty plea. If convicted, the defendants face a maximum statutory five-year term of imprisonment, a fine of $250,000, or both.

The investigation was conducted by the Federal Bureau of Investigation, and the prosecution is being handled for the government by Assistant U.S. Attorney David A. Brown.

Carla Lowry,
Durham
Rene Acuna,
Matthews
Angelia Osborne,
Charlotte
Edward McCray,
Charlotte
Daryl Floyd,
Charlotte
Wayne Carraway,
Charlotte
Steve Hayley,
Charlotte
Robert Abbott,
Atlanta
Jeff Taylor,
Rock Hill
Richard Albino,
Fort Mill