NASHVILLE – A 21-rely indictment, unsealed right now, charges the previous owner and the previous Main Money Officer of Vehicle Masters with conspiracy to commit bank fraud and other expenses linked to a multi-million-dollar plan to defraud financial establishments, introduced U.S. Legal professional Mark H. Wildasin for the Middle District of Tennessee.
Mahan (Mark) Janbakhsh, 47, of Brentwood, Tennessee, and Steven L. Piper, 51, of Joelton, Tennessee, were being indicted on Monday and arrested earlier these days by FBI agents. Both equally will look before a U.S. Magistrate Decide in Nashville later today.
The indictment prices Janbakhsh and Piper with conspiring to defraud Funds 1 and Initially Tennessee Financial institution (now 1st Horizon) five counts of defrauding these financial establishments 5 counts of producing untrue statements and over-valuing property and securities for the reason of influencing these fiscal institutions and three counts of building false representations all through official proceedings. Other counts in the indictment charge the two defendants with creating wrong statements beneath oath. Moreover, the indictment costs Janbakhsh with witness tampering and charges Piper with a few counts of filing bogus tax returns.
In accordance to the indictment, Janbakhsh was the the vast majority operator and CEO of America’s United Economical, LLC, and Affiliate marketers, a business enterprise that was designed up of 9 made use of automobile dealerships and six linked finance organizations located in and close to Nashville, Tennessee (collectively referred to as Automobile Masters). Furthermore, Janbakhsh owned other automobile, radio, and serious estate linked enterprises, such as Plaza Mariachi, which is an enjoyment middle and sector in South Nashville.
Piper was a Certified Community Accountant and was the Main Economic Officer of all the Automobile Masters entities and well prepared the tax returns for Car Masters and for Janbakhsh individually.
The dealerships bought used vehicles and provided car financial loans in connection with individuals profits. The auto financial loans were being then sold to the similar Auto Masters finance companies which operated making use of a line of credit score with Capital One and First Tennessee Lender. In purchase to keep on working with the line of credit history, Vehicle Masters was demanded to submit month to month borrowing foundation certificates to report the complete worth of qualified loans, which formed the collateral for the line of credit history.
On Oct 9, 2017, Piper submitted a borrowing base certification to Capital A single for the interval ending September 31, 2017, disclosing that Car Masters experienced overstated its collateral by above $33 million. In the certificate, Vehicle Masters admitted that it experienced drawn around $26.4 million extra than it was permitted to attract under the terms of the line of credit score. The pursuing 7 days, Vehicle Masters filed for personal bankruptcy. All through the bankruptcy proceedings, Cash A single sought to depose the mortgage portfolio and assortment supervisor for Vehicle Masters, but were being not able to do so, as he had still left the jurisdiction. The bankruptcy receiver established that as of July 31, 2017, Car Masters experienced overstated its collateral by almost $37 million, and had drawn about $24 million more than Automobile Masters was permitted to draw.
The indictment alleges that Janbakhsh, Piper, and other individuals, manipulated the monetary database of Vehicle Masters and prompted fake reviews to be sent to Money One to make it surface as even though there was more collateral than there really was. The database manipulation integrated creating untrue entries to make delinquent financial loans appear present, and producing fake loans dependent on copy Auto Identification Numbers, automobiles that had been repossessed, motor vehicles that had been paid out off, and utilizing info from consumers who had utilized for financial loans but had been turned down.
The indictment alleges that Janbakhsh and Piper falsely testified for the duration of individual bankruptcy proceedings that they experienced no expertise of any person reporting phony data to the loan companies and have been not included in the fraudulent scheme.
The indictment also alleges that Janbakhsh engaged in witness tampering with the intent to hinder the federal investigation when he gave the previous Car Masters portfolio manager a funds payment of $10,000 and promised him an more sum of approximately $300,000 if he would go away the jurisdiction to prevent him from supplying information about the fraud to federal brokers.
Lastly, the indictment alleges that Piper submitted phony particular person earnings tax returns for the tax a long time 2016, 2017, and 2019, in which he underreported his private profits.
The indictment also incorporates a forfeiture allegation in which the United States seeks to get better all home symbolizing the proceeds derived from the crimes, which include a dollars judgement.
If convicted, Janbakhsh and Piper encounter up to 30 a long time in prison and a $1 million great.
This case was investigated by the FBI and IRS-Prison Investigation primarily based upon a referral for investigation and prosecution by the U.S. Trustee’s Place of work. Assistant U.S. Lawyers Kathryn W. Booth and Thomas Jaworski are prosecuting the situation. Assistant U.S. Lawyer J. Matthew Blackburn is dealing with the forfeiture.
All defendants are presumed harmless till demonstrated guilty in a courtroom of law.