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Monday, Sep. 19, 2011
Man guilty in Modesto, Merced car fraud case
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FRESNO — A Fresno man pleaded guilty Monday in a fraud case involving used car dealerships in Modesto and Merced, the U.S. attorney's office announced.
Hussein Ali, 52, pleaded guilty to conspiring to commit bank fraud by falsifying car loan applications. He is free on bond and is due back in federal court Dec. 9. He faces a maximum of 30 years in prison and a $1 million fine.
Ali worked for three brothers — co-defendants Abdel Baset Jawad, Abdul Muniem Mohamad Jawad and Najeh Kamal Jawad — who owned and operated used car dealerships in Stanislaus and Merced counties. Ali also had his own business, A&A Consulting, in Fresno.
Hussein Ali, 52, pleaded guilty to conspiring to commit bank fraud by falsifying car loan applications. He is free on bond and is due back in federal court Dec. 9. He faces a maximum of 30 years in prison and a $1 million fine.
Ali worked for three brothers — co-defendants Abdel Baset Jawad, Abdul Muniem Mohamad Jawad and Najeh Kamal Jawad — who owned and operated used car dealerships in Stanislaus and Merced counties. Ali also had his own business, A&A Consulting, in Fresno.
The dealerships included Modesto's Own a Car and The Auto Store, and Merced's The Auto Store.
Prosecutors allege the Jawads directed their employees, including Ali, to prepare false and misleading financial documents if a customer could not qualify for a car loan.
The false and misleading information including listing employers for whom the customers did not work or inflating the earnings for customers who had jobs, according to the U.S. attorney's office.
Prosecutors allege Ali's business was used as a fictitious employer and provided fictitious earning statements for customers of the car dealerships.
Because many of the customers did not have the ability to repay their loans, their vehicles were repossessed and their lenders lost money. Prosecutors said because of Ali's conduct, financial institutions lost more than $120,000.
Co-defendant Armando Fathic Abdalla pleaded guilty to one count of bank fraud Dec. 10, 2009, and is scheduled to be sentenced Nov. 17.
Bee staff writer Kevin Valine can be reached at kvaline@modbee.com or (209) 578-2316.
Prosecutors allege the Jawads directed their employees, including Ali, to prepare false and misleading financial documents if a customer could not qualify for a car loan.
The false and misleading information including listing employers for whom the customers did not work or inflating the earnings for customers who had jobs, according to the U.S. attorney's office.
Prosecutors allege Ali's business was used as a fictitious employer and provided fictitious earning statements for customers of the car dealerships.
Because many of the customers did not have the ability to repay their loans, their vehicles were repossessed and their lenders lost money. Prosecutors said because of Ali's conduct, financial institutions lost more than $120,000.
Co-defendant Armando Fathic Abdalla pleaded guilty to one count of bank fraud Dec. 10, 2009, and is scheduled to be sentenced Nov. 17.
Bee staff writer Kevin Valine can be reached at kvaline@modbee.com or (209) 578-2316.
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