Former Car Store Salesman and Financial Manager Pleads Guilty to Conspiracy to Defraud Automobile Sales Lenders
|U.S. Attorney’s Office October 27, 2009|
NORFOLK, VA—Edward Charles Dearborn, 47, of Virginia Beach, Va., pled guilty today in Norfolk federal court to conspiracy to defraud federally insured financial institutions and other lenders who financed used car sales at the Car Store in Virginia Beach between October 2006 and
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after Dearborn’s plea was accepted by United States District Judge Raymond A. Jackson. He faces a maximum of five years in prison when he is sentenced on February 18, 2010.
According to court documents, Dearborn was a salesman and financial manager at the Car Store, a used car sales company, during 2006 to 2007. During that period the Car Store developed a reputation for selling cars to “almost anyone” regardless of their creditworthiness. In order to obtain the necessary loans, Dearborn and others used a number of fraudulent means to qualify buyers for loans, including using “straw” buyers and submitting loan applications containing false information that was supported by fake documents such as pay stubs and wage and earnings statements that were created by Dearborn and others. A number of buyers had no legitimate income or proof of income. Dearborn admitted to participating in eight loans in 2007 totaling over $102,000 in which he was involved in creating bogus documents. Dearborn will be required to make restitution for the losses to the lenders on the loans.
The FBI and the IRS investigated the case. Assistant United States Attorneys James A. Metcalfe and Robert J. Krask prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.