We’re not singling out the good people of Erie, Pennsylvania, but it’s possible some General Motors dealers in that city may feel a pressing need for extra cash. On Tuesday, a grand jury indicted the owner of Lakeside Chevrolet-Buick and a former finance manager on charges of fraud.
You’ll recall a few years ago when another GM dealer in the city saw its owner and general manager indicted in a phony loan scheme. In the most recent case, the owner formerly held the title of president of the National Independent Automobile Dealers Association, and the indictments flowed following accusations of phoney sales reports and unpaid floorplan loans.
The 17-count indictment, detailed by the U.S. Attorney of the Western District of Pennsylvania via Automotive News, accuses Lakeside owner Andrew Gabler and ex-finance manager Chad Bednarski of a laundry list of dirty deeds. The indictments include counts of conspiracy, bank fraud, and wire fraud that allegedly took place at a franchised Chevy-Buick dealer and two pre-owned stores operated by Lakeside Auto Sales over the course of four years.
From the U.S. Attorney’s Office:
The indictment states that from in and around January 2015, to in and around January 2019, Gabler and Bednarski falsely indicated that customers made a down payment and falsified and inflated the income of customers when submitting auto loan applications to financial institutions on behalf of customers. In addition, Mr. Gabler caused extended warranties to be sold to customers buying a vehicle at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payment to the extended warranty company.
Further, the defendants falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates. Finally, the defendants deliberately did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
The indictments came following an investigation by the FBI and state police. If convicted, the sky’s the limit when it comes to sentencing for the two men. The Attorney’s Office claims “the law provides for a maximum total sentence of 510 years in prison and a fine of $17,000,000 for Andrew Gabler and 330 years in prison and a fine of $11,000,000 for Chad Bednarski.”
Of course, an actual sentence would take into account the seriousness of the crimes, as well as the defendants’ history.
[Image: General Motors]
A car dealer engaged in fraudulent loan applications, do they do mortgages as well?
Good news: there aren’t as many outright fraudulent mortgage loan apps anymore.
Bad news: there seems to be an effort underfoot to undercut the regs that led to that happy state of affairs.
Worse news: stated income (better known as “liar loans”) have made a comeback.
Doesn’t seem that we’ve learned much from the last time this rodeo was held…
You got to get the TruCoat.
also the VIN etching, just in case your auto, suv, truck, cuv is stolen, heaven forbid!
Bring back those “gold packages” that adorned Lincoln’s and Lexuses in the 90s
Don’t forget the Camry “American Edition” I saw at a Lima, OH auto show back in the 1990s.
The only difference was the gold badges on the black paint.
Very sharp, thank god there was no fake convertible top.
Probably two-tone paint, IIRC. The generation after the ‘92-whatever year which was Lexus quality with cloth seats.
That’s a lot of potential years and fines – hardly seems to fit the crime(s), if convicted.
Jerry Lundegaard lives!
Ya, shoor!
The paperwork on a Burnt Umber Invasion should have been the first clue!
Shouldn’t that be “Burnt Umber Inversion”?
Wait a minute, Paperwork, we don’t need no stinking paperwork!
Ya, and wait ‘til ya see da Encore!!!! ;-D
I tell ya, I faxed dat to ya da other day!!
Geez!
Like playing with yourself – everyone does it; some get caught, a few get punished severely.
Does GM not learn anything???
Please see TTAC 9/3/2015
McNamara GMC-Buick, Port Jefferson, NY.
Wasn’t there a story here about a Ford dealer it happened to?
Happened to a Ram/Dodge/Chrysler/Jeep dealer in my area recently too. That building and lot are still vacant.
Just more excuses to make “Fargo”-esque comments, you betcha!
Yer darn tootin’!
Dogs are being trained to take down school shooters, me thinks dogs should be trained to take down scrupulous auto dealers!!! Ruff! Ruff!
@redgolf- “dogs should be trained to take down scrupulous auto dealers!!!”
Just how many of those do you think that there are ?
probably a whole lot more than the 6 beers a just drank! ;-)
Dogs or dealers?
I deal with a number of dealers here in Houston. I’d say more than half play the tired old “gotcha” games with customers. There are some very good and fair dealers as well. Unfortunately, they are the minority.
Gonna take a lot of $200 nitrogen tire fills to pay those fines.
Oh, forgot the Stainguard (C)
Nah, you’ll love da TrueCoat! Guaranteed to wash off da kar in da next rainstorm; yer darn tootin’!
“Hi Ya Friends! Ralph Spoilsport here! Now you’re not gonna believe me when I tell you I’ve got an envelope here that will CLEAN your car while you’re driving it home to work!”
And if you act now, I’ll throw in a set of steak knives!
That’s “Snake knives”
while I loathe GM, its dealers are certainly not worse than Honduh and Toyoduh dealers who colluded in the 1980’s to keep prices up on products and played games with consumers – Rick Hendrick (NASCAR) is a convicted felon that was pardoned by an impeached President, Bill Clinton. What he and his ilk did is disgusting. I worked for an import dealer also in the 1980’s and could not believe the stuff they were trying to pull off. I refuse to buy from those brands and that dealer chain to this day. I still have friends in that segment and things have changed, but the honesty and integrity has not been added to the sales channel.
Someone get Reilly Diefenbach on the phone!
What dey did was a very bad thing!
Prowler needs a jomp!
I wonder – could any automaker ever be successful without a traditional dealer network?