Pharr auto dealer accused of mail, wire, bank fraud
McALLEN — Federal prosecutors allege a local longtime auto dealer attempted to defraud several banks as part of a scheme to generate cash beginning in 2012, according to court records.
In an indictment unsealed last month and reported first by the Advance News Journal of Pharr, the government alleges Joe Blackwell, 69, of Pharr, who is the owner of Auto Sense, sold contracts that were already used as collateral to obtain more than $1.5 million in credit from another bank.
“(Blackwell) was instructed that he could not sell vehicle installment contracts in order to generate cash flow for Auto Sense Inc.,” the indictment states. “These vehicle installment contracts were intended to be used as collateral to secure the final consolidation loan (from Rio Bank).
“A vehicle installment contract is a written agreement between the purchaser and Auto Sense Inc., where the purchaser agrees to make monthly payments for the purchase of an automobile.”
Read more: http://www.themonitor.com/news/local/article_a8e676dc-0547-11e8-bd60-77c0f2f3dfa2.html
