A car dealership allegedly requested $555,000 in loans from eight credit unions for the same vehicles, federal prosecutors in the Middle District of Tennessee in Nashville said.
Andrew Oliver, 31, of Cadiz, Ky., who owns First Choice Auto Sales in Clarksville, Tennessee, and AJ’s Auto Sales in Hopkinsville, Ky., pleaded not guilty to one count of bank fraud . However, he is expected to amend his plea at a hearing scheduled for May.
Prosecutors alleged in court papers that Oliver inflated his income on loan application documents and omitted the fact that he had previously obtained loans from other credit unions on the same vehicles, a Ford F-450 and a Cadillac.
For the Ford F-450, Oliver requested six loans totaling $340,000 from the $153 billion Navy Federal Credit Union in Vienna, Va., from the $3.6 billion NASA Federal Credit Union in Upper Marlboro , Maryland, $216 million Service One Credit Union in Bowling Green, Ky., $3.7 billion Ascend Federal Credit Union in Tullahoma, Tennessee, $522 million Cornerstone Financial Credit Union in Nashville, Tennessee, and the $14 billion Mountain America Credit Union in Sandy, Utah, court documents were shown.
On the Cadillac, the auto dealer requested three loans totaling $215,000 from the $88 million Evansville Federal Credit Union in Evansville, Indiana, the $2.8 billion Evansville Teachers Credit Union, also based in Evansville, and the Navy Federal Credit Union, according to court documents. .
Federal prosecutors said the fraudulent loans caused a total loss of $368,585 for seven of the eight credit unions.