A Tennessee man who bilked Nissan North America out of over half a million dollars has been sentenced to five years in prison for mail fraud and money laundering. U.S. District Judge William J. Hynes, Jr., handed down Carter’s sentence Feb. 13, 2015.
Kenneth Carter, 45, an “arbitration specialist” with Nissan’s Franklin, Tenn., office, received kickbacks from Nissan owners by filing false “lemon law” claims.
Carter’s job from March 2007 to April 2008 was to negotiate settlements with attorneys who brought claims from Nissan owners. During that time, he filed more than 80 false claims.
The scheme originated with Carter, who worked with five co-defendants – Francisco DeLaRosa, 42, of West Covina, Calif.; Adrian Franklin, 40, Chandler, Ariz.; Bruce Young, 49, Compton, Calif.; Tracey Young, 46, Los Angeles, Calif.; and Wendell Young, 34, Inglewood, Calif. They obtained names, addresses and vehicle identification information from owners and sent them to Carter who used the information to file fraudulent claims and request settlement checks from Nissan.
The Nissan owners were directed to deposit the checks, with Carter and his accomplices receiving kickbacks.
The co-defendants in the case were previously sentenced to between five months in a halfway house to 20 months in prison. They also had to pay restitution to Nissan.
The IRS-Criminal Investigation unit and the Tennessee Bureau of Investigation investigated the case.
If your business received a PPP loan, you may be eligible to have that loan forgiven. Our team can help you ensure that your loan forgiveness application is filed correctly and timely. Complete our five-question form, and we can provide a quote for your application by the next business day.Request a Quote