United States Attorney Stephanie A. Finley announced today that Mike’s Auto Sales Inc. and A-1 Auto Finance Company were sentenced by U.S. District Judge Elizabeth E. Foote. Mike’s Auto Sales was ordered to pay a $500,000 fine, and A-1 Auto Finance was ordered to pay a $350,000 fine. The businesses were also ordered to forfeit $1.3 million in illegal proceeds and the business real estate, buildings, and vehicle inventory belonging to the companies. In addition to the sentenced imposed, the businesses were given five years of probation…
According to evidence presented at the guilty pleas, the owners and operators of Mike’s Auto Sales and A-1 Auto Finance engaged in a conspiracy to commit money laundering beginning in 1996 through November 2010. The scheme concerned the sale and financing of used and new vehicles to individuals who derived, or represented that they derived, significant income from the distribution of illegal drugs. The operators of the businesses knowingly accepted cash proceeds from drug dealers, allowed vehicle purchases in the names of nominees, and falsified records of payments received. They provided false information to multiple local and federal law enforcement agencies, including the Shreveport Police Department and the Harrison County Sheriff’s Office, to facilitate the release of vehicles seized from drug dealers.
In 2009 and 2010, the FBI conducted multiple “sting” operations directing cooperating individuals to purchase vehicles in the names of nominees and using large cash payments toward the purchase of those vehicles. These operations proved that the defendants readily accepted large amounts of money thought to be drug proceeds and skimmed cash from down payments by manipulating records to show lower sales prices and reduced amounts of down payments. In connection with these activities, Boyter pleaded guilty to one count of wire fraud and one count of tax evasion.
Detailed USDOJ press release link: click here