Former Principals of Vehicle Financing Company Plead Guilty to Fraud Charges
BOSTON - The founders and principals of Inofin Inc., a shuttered motor vehicle finance company based in Rockland, Mass., pleaded guilty today to fraud in connection with soliciting investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 54, of Plymouth, and Kevin J. Mann Sr, 66, of Marshfield, pleaded guilty to one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 20, 2017.
From 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to used car buyers 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. Cuomo and Mann falsely represented that the investors could rollover money held in retirement plans to Inofin, and that Inofin, as an authorized custodian of retirement money, would invest and then return the principle with interest. 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. Inofin ultimately 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities and Exchange Commission also provided assistance with the investigation. Assistant U.S. Attorneys Vassili Thomadakis and Victor A. Wild of Weinreb’s Criminal Division are prosecuting the case.