Jasper Car Dealership Executive Charged in Conspiracy to Steal Near $1M from Businesses
BIRMINGHAM – A federal grand jury on Wednesday indicted a Jasper man for stealing more than $900,000 from Maloy Ford Lincoln and Maloy Automotive Group, which does business as Maloy Chrysler Dodge Jeep Ram, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service Special Agent in Charge Veronica Hyman-Pillot.
A 15-count indictment filed in the U.S. District Court, charges ROBERT EDWIN MALOY, 59 with one count of conspiracy, eleven counts of wire fraud and three counts of mail fraud.
According to the indictment, Maloy was the general manager and president of the Maloy Ford and Maloy Chrysler dealerships from 2010 until December 2013. Maloy held a minority ownership interest in Maloy Ford and Maloy Chrysler. Prior to holding the executive positions, Maloy operated a used-car dealership known as Maloy Automotive.
As general manager and president, Maloy was responsible for the day to day operations of Maloy Ford and Maloy Chrysler, which included overseeing the monthly financial statements and entering into contracts and agreements with outside vendors on behalf of the dealerships.
According to the indictment, Maloy agreed with an individual employed by Premium Dealer Products, a broker that sold vehicle service products, to inflate the cost of various items. The inflated cost, referred to as an “over remittance,” was included in the amount charged to the customer, then paid to the vehicle service provider via the monthly Maloy Ford or Maloy Chrysler dealership checks. The overage then was passed back from the vehicle service providers to Premium Dealer Products, and finally was hand delivered to Maloy in the form of a check payable to Maloy Automotive. Maloy caused the checks to be deposited into the Maloy Automotive bank account, an account Maloy held that was unaffiliated with either dealership. Maloy concealed the over remittance checks payable to Maloy Automotive from the owners of Maloy Ford and Maloy Chrysler.
Additionally, in 2009 Maloy, on behalf of Maloy Automotive, borrowed $250,000 from Access Insurance Services. The principal of Premium Dealer Products helped Maloy obtain the loan. Between April 2011 and April 2013, Premium Dealer Products withheld some of the over remittance funds from Maloy Ford and Maloy Chrysler and used the funds to make loan payments on behalf of Maloy for the Access Loan.
The maximum punishment for wire fraud and bank fraud is 20 years in prison and a $250,000 fine. The maximum punishment for conspiracy is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.