Ex Huntington Car Dealer Pleads Guilty to Fraud

From the Charleston Daily Mail:

Ex-car dealer pleads guilty to defrauding bank

by The Associated Press

HUNTINGTON — A former car dealer who falsely obtained at least $2.5 million from BB&T through a financing scheme pleaded guilty Monday to federal fraud charges.

Frederick G. Davis of Lesage admitted that he used a line of credit for his dealership to defraud the bank. The 51-year-old Davis owned Davis Chrysler Plymouth Jeep Eagle in Huntington until 2003, when he sold it.

U.S. Attorney Charles Miller’s office says the fraud occurred from July 2001 through December 2002 and cost BB&T between $2.5 million and $7 million.

Davis pleaded guilty to one count of bank fraud and one count of engaging in an unlawful monetary transaction.

He faces up to 40 years in prison and a fine of at least $1.25 million. Sentencing is set for June 8.

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