Five Former Shoreline Mitsubishi Employees Who Participated in Credit Fraud Scheme Sentenced

Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that five individuals who participated in an extensive credit fraud scheme at the now-defunct Shoreline Mitsubishi of Branford have been sentenced by Senior United States District Judge Ellen Bree Burns in New Haven.

According to the evidence disclosed during previous court proceedings and documents filed with the Court, from approximately February 2000 to July 2002, several former employees of Shoreline Mitsubishi in Branford participated in a scheme whereby they submitted false customer credit information via fax, the Internet, and the mails to Mitsubishi Motors Credit of America, Inc. (“MMCA”). Specifically, Shoreline Mitsubishi employees inflated customers’ income figures and falsified other material information before submitting customer credit applications to MMCA. Shoreline Mitsubishi employees submitted these false credit applications to MMCA in order to deceive MMCA concerning the customers’ income and other material information, and thereby to induce MMCA to approve the extension of credit to customers of Shoreline Mitsubishi who would not have qualified for automobile financing at all, or for the amounts approved by MMCA, had such fraudulent information not been provided to MMCA.

On many of the transactions, Shoreline Mitsubishi employees failed to disclose to customers the existence of large “balloon payments” at the conclusion of their financing contracts. In addition, in some instances, Shoreline Mitsubishi customers were being charged a substantially higher price for the automobiles than the customers had agreed to pay. In other instances, customers were being charged for insurance contracts and extended service warranties that they had not requested or that they had been told were being included in their contract free of charge. In many instances, Shoreline Mitsubishi customers were charged for optional items, such as CD changers, that were not actually installed in their cars. Finally, the investigation revealed that some Shoreline Mitsubishi employees pocketed cash down payments that had been provided to the dealership by customers.

On Wednesday, August 5, MICHAEL RIVERA, 40, of New Haven, a former salesperson at the dealership, was sentenced to two years of probation, the first six months of which RIVERA must spend in home confinement. RIVERA also was ordered to pay restitution in the amount of $1000 to a customer victim whose cash down payment he stole, and $14,000 to MMCA, which is related to his own fraudulent loan with the financing company. On April 1, 2005, RIVERA pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.

On Thursday, August 6, RICHARD BROWN, 43 of Hartford, a salesperson, was sentenced to 60 months of imprisonment, followed by three years of supervised release. BROWN also was ordered to pay restitution in the amount of $250 to a customer victim whose cash down payment he stole. On September 7, 2005, a federal jury found BROWN, guilty of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud and one count of wire fraud.

Also on August 6, NELSON DATIL, 32, of Waterbury, a salesperson, was sentenced to one day of imprisonment, six months in community confinement (“halfway house”), and three years of supervised release. On September 7, 2005, the same jury found DATIL guilty of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud and four counts of wire fraud.

Today, JAMES CLANTON, 35, of Norwich, a salesperson, and JOSE CONCEPCION, 41, of Meriden, a sales manager at the dealership, each was sentenced to two years of probation, the first six months of which must be served in home confinement. On April 16, 2003, CLANTON pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud and, on September 9, 2003, CONCEPCION pleaded guilty to the same charges.

For the purpose of sentencing the defendants in this matter, the Court has determined that MMCA has suffered a loss of $2.1 million as a result of this fraud scheme.

Shoreline Mitsubishi went out of business in 2003.

This matter was investigated by the Federal Bureau of Investigation, the United States Secret Service and the Branford Police Department. The Connecticut State Police, the Connecticut Department of Motor Vehicles, and the Guilford Police Department also provided assistance in this case. This case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and Jonathan Biran.

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