Owner of Car Dealership Charged with Engaging in Large-scale Fraud
NEWARK, N.J. – The former owner of a Ramsey, New Jersey, car dealership is scheduled to make his initial court appearance and be arraigned today on charges that he defrauded his customers and lenders, U.S. Attorney Craig Carpenito announced.
Afzal Khan, a/k/a “Bobby Khan,” 37, was charged by indictment in 2015 with five counts of wire fraud.
According to the documents filed in this case and statements made in court:
From at least December 2013 through September 2014, Khan, through his car dealership,
Emporio Motor Group (“Emporio”) of Ramsey, engaged in acts to defraud lenders to, and customers of, Emporio. As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. The purchasers of these cars were liable for the loans, but could not register the cars. Khan also offered to sell cars for individuals on consignment but thereafter did not return the cars or provide any money to the purchaser from the sale of the car.
As a result of Khan’s actions, the victim bank was exposed to a potential loss of more than $1.5 million.
Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Khan or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment. He also thanked the Department of Justice’s Office of International Affairs, the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance in the case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.