Car Dealer Sentenced To Prison For Vehicle Loan Fraud Scheme
Las Vegas, Nev. – Gary Allen Wexler, the former owner of Wex Wheels, Inc., a defunct car dealership located at 3401 South Decatur Boulevard, Las Vegas, has been sentenced to 18 months in federal prison 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.
Wexler, age 61, of Las Vegas, was sentenced on Monday, November 27, 2006, by U.S. District Judge Robert C. Jones. Wexler must also pay $1.3 million in restitution to the victims of the offense, and serve three years of supervised release following his release from prison. He pleaded guilty in February 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 is released on a personal recognizance bond, and must surrender to federal prison no later than February 15, 2007.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Thomas S. Dougherty.