The United States Attorney’s Office, Northern District of Georgia, March 1, 2002
ATLANTA - Muneeb Syed, a/k/a Ed Syed, has pleaded guilty to charges that he fraudulently obtained auto financing in connection with his used car businesses.
“We expect businesses to operate lawfully,” said U.S. Attorney Kurt R. Erskine. “Instead, this defendant took advantage of a legitimate car financing plan, resulting in his federal conviction on fraud charges.”
“Syed used deceit and fraud to obtain loans that he was not entitled to receive,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “His guilty plea is a reminder that the FBI remains dedicated to investigating these types of crimes and bringing the offenders to justice.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Muneeb Syed owned Georgia Luxury Cars, LLC, a Marietta used car dealership, as well as other dealerships in Georgia and Alabama. Georgia Luxury Cars had a floor plan financing agreement with Alphera Financial Services, a division of BMW Financial Services NA, LLC, and other financing companies. Floor plan financing allows a dealership to borrow money from a lender to purchase inventory. The company is obligated to repay the lender upon the sale of the cars. Georgia Luxury Cars could request financing directly using an on-line system that relied upon the information provided by Georgia Luxury Cars. Syed utilized this floor plan financing to obtain cars. He purchased cars in a variety of ways, including through auctions. Generally, if Georgia Luxury Cars bought a car at auction, the financing company would pay the auction company directly for the car, and Georgia Luxury Cars owed the financing company under the floor plan agreement.
Beginning in September 2019, Syed began to obtain fraudulent floor plan loans through two different methods. First, Syed falsely claimed to have purchased multiple cars through various auctions. In reality, Syed never purchased these cars but still received funds from BMWFS to which he was not entitled. He did this for over 25 cars and fraudulently received over $1.6 million.
Second, Syed obtained floor plan financing from multiple companies for the same car. That is, he submitted the same car to two or more different financing companies, receiving financing from each company. He did this for approximately 30 cars, fraudulently receiving over $700,000.
Sentencing for Muneeb Syed, 46, of Atlanta, Georgia, is scheduled for June 15, 2022, at 10:00 a.m. before U.S. District Judge Mark H. Cohen. Syed pleaded guilty to wire fraud.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
News article: https://www.justice.gov/usao-ndga/pr/owner-car-dealership-pleads-guilty-defrauding-financing-company