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Former used car dealership owner pleaded guilty in fraud scheme

Stasney was the owner of Buddy Stasney Buick GMC, later named Buddy Stasney Automotive
Stasney pleaded guilty today to wire fraud for executing a fraudulent auto loan scheme to...
Stasney pleaded guilty today to wire fraud for executing a fraudulent auto loan scheme to obtain more than $250,000 from a financial institution.(AP)
Published: Jul. 28, 2021 at 1:08 PM EDT
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CHARLOTTE, N.C. (WBTV) - A man who formerly owned a used car dealership in Lincolnton pleaded guilty today to wire fraud for executing a fraudulent auto loan scheme to obtain more than $250,000 from a financial institution.

Joseph “Buddy” Stasney, 59, of Denver, N.C., appeared before U.S. District Judge Kenneth D. Bell today.

According to filed plea documents and today’s court hearing, Stasney was the owner of Buddy Stasney Buick GMC (later named Buddy Stasney Automotive), a used car dealership in Lincolnton. Between February and December 2015, Stasney was found to have engaged in an auto loan scheme in which he fraudulently obtained money from a financial institution by submitting falsified loan applications on behalf of his victim-customers.

Stasney admitted he executed the loan scheme in a number of ways. After negotiating the sale of vehicles with prospective customers, Stasney fraudulently submitted loan applications on behalf of the customers that contained misrepresentations regarding the current status and terms of the transactions and loans, or submitted loan applications on behalf of customers who were not aware a loan application had been submitted in their name.

In some instances, customers were falsely told their loan had not been processed when in fact it had. In other instances, Stasney defrauded customers who were refinancing loans by falsely telling them that the proceeds of their new loans had been used to pay off their existing loans, when, in fact, Stasney never paid off the customers’ prior auto loans and the victims remained obligated for those loans.

According to court documents, once the fraudulent loan proceeds were deposited into the car dealership’s bank account, Stasney diverted the funds and used a portion to pay for expenses unrelated to his business. Stasney admitted to defrauding the financial institution of more than $250,000, as a result of the fraudulent scheme. Stasney was released on bond following his guilty plea.

The maximum statutory penalty for the wire fraud charge is 20 years in prison and a $250,000 fine.

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