Former Principals of Vehicle Financing Company Indicted on Fraud Charges
BOSTON – The founders and principals of Inofin, Inc, a shuttered motor vehicle finance company based in Rockland, Mass., were charged in U.S. District Court in Boston today with fraud relating to their solicitation of investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 52, of Plymouth, and Kevin J. Mann Sr., 64, of Marshfield, were indicted on one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud. Cuomo and Mann were arrested on Feb. 1, 2015.
The indictment alleges that, from 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to purchasers of used cars who could not qualify for traditional financing. In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals. In an effort to gain access to a source of investor monies that they would otherwise not have had access to, Cuomo and Mann falsely represented to investors that the investors could effect rollovers of monies held in retirement plans to Inofin, and that Inofin was an authorized custodian of retirement monies. In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors transferred more than $11 million in retirement funds to Inofin, practically all of which was lost after Inofin entered into involuntary bankruptcy proceedings.
The charging statutes each provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance it received from the U.S. Securities and Exchange Commission, Boston Regional Office. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.