Ex-Nissan dealership staffers in Alabama face prison

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cwerdna

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Ex-dealership staffers face prison
8 plead guilty to conspiracy and other charges after federal crackdown
...
Jamie LaReau
Automotive News
March 30, 2015 - 12:01 am ET

Several former sales staffers at a Birmingham, Ala., Nissan store face federal prison time as part of a federal crackdown on fraudulent practices in car dealerships.
...
Eight former employees of Serra Nissan have pleaded guilty to felony charges including conspiracy to fraudulently boost loan approvals and car sales. They were D. Scott Burton, 36, Abdul Islam Mughal, 48, and Gerald Shepard, 56, former sales managers; Jeffrey Green, 33, and Michael Wilkinson, 56, former finance managers; and former salesmen Terry Henderson, 39, Dwight Perry, 44, and Roland Riley, 28.

All were charged in the conspiracy to defraud financial institutions, Nissan North America and Serra Nissan customers between August 2010 and October 2013 by fraudulently increasing vehicle sales in order to boost personal profits. Shepard and Mughal also pleaded guilty to bank fraud.
 
cwerdna said:
http://www.autonews.com/article/20150330/RETAIL07/303309969/ex-dealership-staffers-face-prison

Ex-dealership staffers face prison
8 plead guilty to conspiracy and other charges after federal crackdown
...
Jamie LaReau
Automotive News
March 30, 2015 - 12:01 am ET

Several former sales staffers at a Birmingham, Ala., Nissan store face federal prison time as part of a federal crackdown on fraudulent practices in car dealerships.
...
Eight former employees of Serra Nissan have pleaded guilty to felony charges including conspiracy to fraudulently boost loan approvals and car sales. They were D. Scott Burton, 36, Abdul Islam Mughal, 48, and Gerald Shepard, 56, former sales managers; Jeffrey Green, 33, and Michael Wilkinson, 56, former finance managers; and former salesmen Terry Henderson, 39, Dwight Perry, 44, and Roland Riley, 28.

All were charged in the conspiracy to defraud financial institutions, Nissan North America and Serra Nissan customers between August 2010 and October 2013 by fraudulently increasing vehicle sales in order to boost personal profits. Shepard and Mughal also pleaded guilty to bank fraud.

After starting the process of buying a 2015sl a few weeks ago, I'm stunned at the pressure, lies and deceptive measures I've seen. They are the filthiest, lowest form of life. I have never, in 40 years, walked into a car dealership, and met a car salesmen who didn't try to lie in some way. I hope carvana really works. I would be so happy if I never had to deal with another car salesmen for the rest of my life.
 
The dealership mafia; brought to you by the fine folks that would keep Tesla out of your state if they had half a chance.
:?
 
6yearstilbreakeven said:
After starting the process of buying a 2015sl a few weeks ago, I'm stunned at the pressure, lies and deceptive measures I've seen. They are the filthiest, lowest form of life. I have never, in 40 years, walked into a car dealership, and met a car salesmen who didn't try to lie in some way. I hope carvana really works. I would be so happy if I never had to deal with another car salesmen for the rest of my life.

I'm either luckier or more intimidating. I've bought several cars and didn't feel like the car salesperson was a slime. Of course, I didn't give them an inch to try anything.

The price was negotiated by email or USPS mail (yes, I'm that old). I point out in the email that I am bringing one check, and if that check didn't get the car out the door with no additional payments needed I wasn't going to buy the car from them. I point out in email that I know other dealers with prices almost as good as their offer. I point out in email that I've walked away from deals in the past. I'd rather pay $25 more to the next dealer on my list than give a dollar to a cheat.

Oh, and if they treat me right, they get a good feedback report and Yelp comment.

I got a stick, and a carrot. You want to be a good pony, or not?
 
Just a few bad apples ... the last few cars we've been paying cash so the finance guys don't particularly like us as it reduces their opportunity for more profits; we have run into the 'questionable' (to be charitable) salesman characters at times and we simply thank them for the info and go elsewhere, don't have time for hustlers or hucksters. I wonder if someone 'turned' states evidence because this type of fraud, etc. can be difficult to prove. Still recall the 'kid' who stole several dealers out of some high-end luxury cars before getting caught (dubbed the 'Bentley Bandit'); the link doesn't mention it specifically but he also hit Chicago as well.

http://www.huffingtonpost.com/2011/07/18/bentley-bandit-jusin-durbin-arrest_n_901840.html?

It may take time but Karma eventually catches up with you ... make take years but be it dealer or customer it nice to see when they do get caught
 
6yearstilbreakeven said:
After starting the process of buying a 2015sl a few weeks ago, I'm stunned at the pressure, lies and deceptive measures I've seen. They are the filthiest, lowest form of life. I have never, in 40 years, walked into a car dealership, and met a car salesmen who didn't try to lie in some way. I hope carvana really works. I would be so happy if I never had to deal with another car salesmen for the rest of my life.
Not stunned, just expect it. Common to find scum. When I leased my Leaf big lies were told to get me to buy the extended warrenty. Was smart enough not to buy the warrenty. My expenses so far have been zero as yearly maintainence has been done for free by the same dealer.
 
These guys tried to rip off financial institutions. If they would have just stuck with ripping off customers like normal, nobody would have made a fuss.
 
All were charged in the conspiracy to defraud financial institutions

No "Fargo" references? I wonder if any of the defendants bore a resemblance to William H. Macy :lol:
 
WetEV said:
I'm either luckier or more intimidating. I've bought several cars and didn't feel like the car salesperson was a slime. Of course, I didn't give them an inch to try anything.

The price was negotiated by email or USPS mail (yes, I'm that old). I point out in the email that I am bringing one check, and if that check didn't get the car out the door with no additional payments needed I wasn't going to buy the car from them. I point out in email that I know other dealers with prices almost as good as their offer. I point out in email that I've walked away from deals in the past. I'd rather pay $25 more to the next dealer on my list than give a dollar to a cheat.

Oh, and if they treat me right, they get a good feedback report and Yelp comment.

I got a stick, and a carrot. You want to be a good pony, or not?

You are in the majority. Over the past 5 years I've purchased 40 cars for family and friends. 10 years ago my grandmother asked me to buy a car for her, and since then, I've tried (for free) to help anyone who either wants me to go with them, or just sign over a limited power of attorney and me do the whole thing, nuts to bolts.

The people who think they got the best deal and think they handled the salesman are the dealers favorite...they are trained to let you keep thinking you own them, and to let you lead.

It's one of the only professions where having any kind of felony conviction on your record doesn't only not matter, it's considered as valuable as an MBA.
 
6yearstilbreakeven said:
The people who think they got the best deal and think they handled the salesman are the dealers favorite...they are trained to let you keep thinking you own them, and to let you lead.

An amusing thing is that prices paid for cars are publically reported, not who, but just the amount. I know that I got the second lowest price of the quarter for second to last car I bought, a Leaf. I'll take that. Yes, maybe I could do better, but I could do far worse as well. I don't "own the salesman", it is just a transaction. There are lots of car dealers, and he just happened to have the best price this time.

I didn't do as well on the last purchase. It was just an average price. Couldn't do much about it, as the supply of cars that my wife wanted was very limited. Almost bought out of state, but a local dealer came down to close enough to what I could get elsewhere plus a plane ticket or car shipping...And that car dealer, salesman and finance guy were slime, and tried to stick me with a higher price at the last minute. About the worst I've done. Yet I could have done far worse. I could have taken the first price the dealer put out, $7k more, slightly over MSRP (MSRP + garbage fees). Or the "we can't go lower" price of $4k over what I finally paid, after several weeks of emails.
 
WetEV said:
6yearstilbreakeven said:
The people who think they got the best deal and think they handled the salesman are the dealers favorite...they are trained to let you keep thinking you own them, and to let you lead.

An amusing thing is that prices paid for cars are publically reported, not who, but just the amount. I know that I got the second lowest price of the quarter for second to last car I bought, a Leaf. I'll take that. Yes, maybe I could do better, but I could do far worse as well. I don't "own the salesman", it is just a transaction. There are lots of car dealers, and he just happened to have the best price this time.

The "here's what I'm paying" approach is a gold mine for dealers. They already know what their profit margin will be, without having to work for it. They might have advertise the lowest price paid, but they are under no obligation to tell you what there real cost was after incentives.

For example, a friend did what you did on a frontier. 6k off in advertised incentives, and his "here's what I'm paying" number was 2k under the cost after incentive.

The dealership has hundreds of incentives. What you paid means very little - they might get an inventive for selling a car on Tuesday (a traditionally slow day) or have a volume incentive for hitting the end of the month quota (petty common)...or even a bonus incentive for getting you to sign up for 0% finance (yup, they make extra money even with 0 % finance).

So, my friend with the truck really dangled the carrot, stuck to his number....what he didn't know until after the transaction was that his employer (turner broadcasting) was a member of the nissan vsp program, basically, there are hundreds of companies on this list, and each gets a discount for providing nissan a service (a discount on advertising). His turner discount was 2500. He never would have seen it all, but he could have negotiated another 2-1500 off had they been honest. The list of bonuses and incentives is very long.

They are trained to take your number, walk to the gm, pretend to talk about your number, come back to you with a different number, and then cave into your number, telling you you got the best dealer they've ever seen.

The truth is, wetev, you and I will never known what their true cost is, or what they really get back from the manufacture. Saturn came close to a flat rate system, but a true flare rate system (like carvana) is really the only way guys like you and me will ever have fair footing against the dealer. They are thieves, all of them, the most dishonest humans to walk the planet except for politicians.
 
6yearstilbreakeven said:
I've tried (for free) to help anyone who either wants me to go with them, or just sign over a limited power of attorney and me do the whole thing, nuts to bolts.

including in next car purchase a ticket for you to fly into Salt Lake to help me buy a Leaf. I'm looking in May to get one for the wife.
 
Nubo said:
These guys tried to rip off financial institutions. If they would have just stuck with ripping off customers like normal, nobody would have made a fuss.
^^1+ They were stupid enough to misrepresent borrowers to financial institutions. When they lose money, they go after the reason why
 
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