Former Car Dealer Pleads Guilty to Fraud | WPN World People News

John B. Langley, 62, of Harrah, Oklahoma, has entered a guilty plea to making a false statement to a federally insured credit union, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

In 2008 and 2009, Langley owned and operated J&K Langley Corporation, which sold used cars in Oklahoma City under the name Bargain Network Auto Sales. On June 5, 2012, he was indicted for fraudulently taking out multiple loans on vehicles. In particular, the indictment alleged that he borrowed money from Municipal Employees Credit Union and pledged vehicles on his lot as collateral, when he knew that those vehicles had been pledged to Floorplan Xpress, a financing company that specializes in lending money to car dealers. The indictment also alleged that Langley defrauded the credit union by selling collateralized vehicles and failing to give the proceeds to the credit union to satisfy his loans.

Today, Langley pled guilty to giving a fictitious lien release letter on Floorplan Xpress letterhead to Municipal Employees Credit Union on March 23, 2009, in connection with a loan for a 2009 Nissan Maxima. In a plea agreement, he has agreed to pay restitution to the credit union in the amount of $200,806.57 and to Floorplan Xpress in the amount of $75,410. In addition to restitution, he faces a potential penalty of 30 years in prison and a fine of $1,000,000. Sentencing will take place in approximately 90 days.

Source: U.S. Attorney’s Office