Auto Dealer Drains $26,400,000 From Capital One in Massive Bank Fraud Scheme: DOJ

A former auto dealer is facing a maximum of 30 years in prison for running a massive bank fraud scheme.

Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire says a federal jury has convicted Mark Janbakhsh of conspiracy to commit bank fraud, bank fraud, making false statements to a bank, bankruptcy fraud and making a false statement under oath.

Janbakhsh was the CEO and majority owner of Auto Masters, a car dealership company that had a line of credit with Capital One and First Tennessee Bank (now First Horizon Bank) from 2013 to 2017.

Court documents show that the 49-year-old conspired with his brother, Ron Janbakhsh, and others in the company to submit fake documents to Capital One. The objective was to artificially inflate the value of Auto Masters’ collateral, which would allow Janbakhsh to draw on lines of credit that he was otherwise not qualified to take. The fraud enabled Auto Masters to obtain around $26.4 million.

When bank auditors launched their probe, Janbakhsh ordered employees to wipe data, emails and records that could expose his fraud. He also tried to pay a co-conspirator more than $300,000 to flee after learning federal agents were expanding their investigation to others involved.

Says McGuire,

“Our office will vigorously pursue dedicated fraudsters like the defendant who lie and cheat for their own gain, and we’re not afraid to make our case to a jury to hold them accountable for their crimes.”

Judge Waverly D. Crenshaw, Jr. will sentence Janbakhsh later this year. Aside from jail time, he faces a fine of up to $1 million and possible forfeiture of property.

Generated Image: Midjourney