The owner of D.I.B Leasing in Teterboro, along with three employees and the dealer’s bookkeeper were indicted on first-degree charges of conspiracy, financial facilitation of a criminal activity, and trafficking in personal identifying information pertaining to another person for allegedly submitting numerous fraudulent car loan applications between August 2012 and February 2015. The dealership’s finance officer was charged previously with financial facilitation and misconduct by a corporate official in connection with the alleged scam.
Prosecutors allege the defendants created fake employment records, inflated incomes, and supplied false pay stubs and fictitious employee verifications to dupe banks into approving auto financing for customers whose income levels did not qualify them for loans on the pricey vehicles.
Four of the loans were taken out in the names of customers who had submitted personal information to apply for financing but ultimately did not buy cars from the dealership, prosecutors allege.
“Consumer confidentiality and trust in the system is crucial to anyone buying a car,” Acting Attorney General Hoffman said. “These defendants are accused of shamelessly exploiting that trust for their own selfish gains. My office will aggressively investigate and prosecute corrupt retailers use customers as unwitting pawns in their unlawful schemes."
In one case, the victim had never been to D.I.B. Leasing or applied for a car loan there, prosecutors allege.
“None of the victims had any idea car loans were taken out in their name until they began receiving bank notices that they were behind on payment for vehicles they didn’t own,” said Acting Insurance Fraud Prosecutor Christopher Iu. “This was a brazen scheme that defrauded consumers and banks alike.”
Charged in the scheme were:
In addition to the charges above, Galasso, Marquez, Ghobrial, and Ricciardi were all charged with second-degree identity theft, and 62 counts of theft by deception – two in the second degree and 60 in the third degree. Marquez, Galasso, and Ghobrial were also charged with second-degree misconduct by a corporate official.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. First-degree crimes carry a sentence of 10 to 20 years in state prison and a criminal fine of up to $200,000; second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000; while third-degree crimes carry a sentence of three to five years in state prison and a criminal fine of up to $15,000.
Deputy Attorney General Colin J. Keiffer presented the case to the grand jury. Detective Sergeant Jarek Pyrzanowski and detectives Kahlil McGrady, Ryan Kirsh, Kristi Procaccino, and Megan Flanagan coordinated they investigation with assistance from analysts Chris Runkle, Terry Drumm, and Theresa Worthington. Acting Attorney General Hoffman thanks Bergen County Prosecutors’ Office, National Insurance Crime Bureau, and Plymouth Rock Assurance for their assistance in the investigation.
Acting Insurance Fraud Prosecutor Iu noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.