News and Press Releases

Former Car Store Salesman and Financial Manager Sentenced for Conspiracy to Defraud Automobile Sales Lenders

FOR IMMEDIATE RELEASE
February 19, 2010

NORFOLK, Va. - Edward Charles Dearborn, 47, of Virginia Beach, Va., was sentenced yesterday in Norfolk federal court to six months in prison for conspiracy to defraud federally insured financial institutions and other lenders who financed used car sales at the Car Store in Virginia Beach between October 2006 and July 2007.  He was also ordered to pay over $30,000 in restitution.  Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after Dearborn was sentenced by United States District Judge Raymond A. Jackson. 

According to court documents, Dearborn was a salesman and financial manager at the Car Store, a used car sales company, during 2006 to 2007.  During that period the Car Store developed a reputation for selling cars to “almost anyone” regardless of their creditworthiness.  In order to obtain the necessary loans, Dearborn and others used a number of fraudulent means to qualify buyers for loans, including using “straw” buyers and submitting loan applications containing false information that was supported by fake documents such as pay stubs and wage and earnings statements that were created by Dearborn and others.  A number of buyers had no legitimate income or proof of income.  Dearborn admitted to participating in eight loans in 2007 totaling over $102,000 in which he was involved in creating bogus documents.  Dearborn was ordered to make restitution for the losses to the lenders on the loans.  Dearborn is the 12th defendant to plead guilty as a result of the investigation into used car loan frauds.

            The FBI and the IRS investigated the case.  Assistant United States Attorneys James A. Metcalfe and Robert J. Krask prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.

 

 

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