Las Vegas Car Dealer Pleads Guilty to Wire Fraud for Vehicle Loan Investment Scheme
Las Vegas, Nev. - The former owner of Wex Wheels, Inc., a defunct car dealership located at 3401 South Decatur Boulevard, Las Vegas, has pleaded guilty to Wire Fraud for cheating investors out of approximately $1.3 million through a fraudulent vehicle financing scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
GARY ALLEN WEXLER, age 60, of Las Vegas, pleaded guilty on Monday, February 13, 2006, in U.S. District Court in Las Vegas to one count of Wire Fraud. WEXLER admitted that on approximately July 12, 2001, he faxed at least 41 fraudulent vehicle loan contracts worth $1,363,238.14 to an individual in Montana. WEXLER admitted that he did so as part of a scheme to defraud the persons who had invested in his car dealership, and that the vehicle loan contracts contained false information and were fictitious.
Wexwheels sold expensive cars to individuals who agreed to make monthly payments at high rates of interest. Wexwheels packaged the car loans and assigned the proceeds to investors, who were to receive monthly payments from the payments that Wexwheels collected from the car purchasers. In reality, the car loans were fictitious, and WEXLER was operating a "Ponzi Scheme" where payments to the investors came from other investor funds. The investors lost virtually all of the monies they invested in the scheme.
WEXLER faces up to five years in prison and a $250,000 fine, and is scheduled to be sentenced by U.S. District Judge Robert C. Jones on May 15, 2006. He is currently released on a personal recognizance bond.
The case is being investigated by Special Agents with the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Thomas S. Dougherty.