ATLANTA–Banks and credit unions here were victims of nearly $2 million in fraud as part of a scam involving paperwork for car loans on vehicles that didn’t exist, according to the U.S. Attorney’s Office for the Northern District of Georgia.
The U.S. Attorney did not identify the credit unions and banks that were allegedly victimized.
According to documents filed in the case, the scheme involved more than 80 auto loans representing $2.7 million in potential fraud, approximately $1.7-million of which was committed before the seven alleged scammers were discovered.
U.S. Attorney Byung J. Pak said the group incorporated businesses with names such as “Platinum Motors Auto Sales” and “Premier Luxury Motors,” but all of the businesses were actually shell corporations with no employees, cars or dealership licenses, he said.
As credit unions have elsewhere in similar schemes, the scam involved recruiting people to apply for car loans from credit unions and banks, with the loan application stating the vehicle was being purchased from one of the fake dealerships. The fraudsters would supply phony vehicle purchase orders in order to secure the funds.