Large-scale fraud sends car dealership owner to prison in New Jersey

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Afzal Khan, aka “Bobby Khan,” of Atlantic County, New Jersey, was sentenced Sept. 7, 2022, to 24 months in prison, convicted for his role in fraudulent activity conducted through his auto dealership, U.S. Attorney Philip R. Sellinger announced.

Khan, 40, of Egg Harbor Township, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud, a press release from the District of New Jersey said.

In addition to the prison term, Judge Martini sentenced Khan to three years of supervised release and ordered forfeiture of $1.1 million. Restitution will be determined at a later date.

According to documents filed in the case and statements made in court, quoted in the press release:

From at least December 2013 through September 2014, Khan, through his car dealership, Emporio Motor Group of Ramsey, New Jersey, engaged in acts to defraud lenders and customers.

Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible.

Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. As a result, the purchasers of these cars were liable for the loans, but could not register the cars.

In addition, Khan offered to sell cars for individuals on consignment, but did not return the cars or provide any money to the individuals from the sale of the cars.

Khan admitted that as a result of his actions, he exposed the victim bank to a potential loss of at least $550,000.