State v. Mr. O (DMC No. 16230) – Felony Fraudulent Schemes ($270,000), and Felony Theft – Not Charged – Navy Federal Credit Union Investigated
Mr. O was a member of a local country club, when he had met another member who was also a wholesale vehicle dealer. A few years after their initial meeting, this other gentleman convinced Mr. O to set up a line of credit and create his own wholesale dealership. He also convinced Mr. O to allow this person to purchase vehicles on his line of credit with Navy Federal Credit Union. Eventually, Mr. O discovered that payments were not being made on the line of credit by this other individual. The other individual stalled Mr. O and stated that the vehicles were in the process of being sold, and the checks would come in soon, the titles would be cleared, and that the Credit Union would be paid back. Eventually, this other gentleman admitted that the other vehicles were already sold and that he had spent Mr. O’s portion of the money, without making payments on the line of credit.
The three loans were for $175,000, $15,000, and $80,000 (for a total of $270,000). These loans were on 4 SUVs and 5 motorcycles. These deficits forced Mr. O to eventually file for Bankruptcy. At that time, Navy Federal Credit Union’s Investigators contacted Mr. O, and he then secured the services of DM Cantor.
We were able to show the Investigators that Mr. O had been Defrauded by allowing this other individual to utilize his line of credit. Although this was technically a violation of their policies regarding the line of credit, we convinced them to work with us in order to pursue charges against the other gentleman involved. They ultimately agreed Not to Seek Criminal Charges against Mr. O, and Police Reports were filed against the other individual, along with a Civil Complaint being filed against him by Navy Federal Credit Union. Had Mr. O initially been Charged with these crimes, because the amount was above $100,000, he would have been required to spend Mandatory Time in Prison. Instead, he has No Criminal Convictions, and his record is clean.
