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Arkansas police arrest 2 managers over F & I practice

November 22, 2010
Two managers at a multi-franchise dealership in Arkansas were arrested this month after a three-day investigation of reports of illegal business practices at the dealership.
The men were charged with theft of property and fraud related to business at the dealership and were released from the city jail on bonds of $150,000 and $75,000.
Police investigated complaints that the two men were receiving used vehicles as trade-ins and not paying off the notes, selling those vehicles to new buyers with money still owed on the vehicles, and not meeting obligations with gap insurance policies and extended warranties.
The men each were charged with three counts of theft of property over $2,500 and three counts of defrauding a secured creditor. The charge of defrauding a secured creditor results from selling property that another finance company had a lien against, without paying off that lien.
Officers executed a search warrant at the dealership for records relating to the sales of new vehicles and trade-ins. They seized several documents, including sales contracts and a partial list of the dealership's inventory.
As news of the arrests became known in the area, "victims just started coming out of the woodwork," a police spokesman said. There have been more than 30 complaints, the spokesman said, with more added every day.
 

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