Defrauded six credit unions and three banks
FOR IMMEDIATE RELEASE
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Rick Benavidez, 47, of Albuquerque, was sentenced in federal court to five years and three months in prison for leading and organizing two auto loan fraud schemes involving a total intended loss of more than $1.5 million.
Benavidez pleaded guilty on April 29 to two counts of bank fraud, one count of conspiracy to commit bank fraud and one count of making fraudulent returns, statements or other documents. In his plea agreement, Benavidez admitted to conspiring with his co-defendant, Damian Maron, 41, of Albuquerque, to carry out a loan fraud scheme against federally insured credit unions in Bernalillo County.
Benavidez conspired with Damian Maron, and another man in 2013 to submit fraudulent documentation, including fake pay stubs, to the $3.5 billion Sandia Laboratory Federal Credit Union in Albuquerque and the $3.8 billion Nusenda Federal Credit Union in Albuquerque to obtain car loans.
Benavidez and Maron convinced lower-level members of the conspiracy to apply for loans totaling $359,662.97. Benavidez gave the loan applicants false pay stubs overstating their income to improve the likelihood of loan approval. Benavidez, Maron and their co-conspirators did not actually use the proceeds of the loans to buy vehicles. Instead, they arranged for the lenders to disburse the loan funds to a fictitious auto dealership. The co-conspirators then divided the proceeds of the fraud and used the money for their own personal benefit.
The loan applications at both credit unions used the title for the same car, a 2007 Mercedes S Class, which was not for sale and which none of the men had any intention of purchasing. The loan funds, which amounted to $359,662, were disbursed to “Automotive Express Inc.,” a phony car dealership. The conspirators split the money and the loans went into default, federal prosecutor said.
Benavidez also admitted in court documents to another car loan fraud scheme with Willie Lee Edwards, in which Benavidez said they stole $999,993 in 2018 from five other credit unions and three banks.
Those financial institutions included the $1 billion Del Norte Credit Union in Santa Fe, the $159 billion Navy Federal Credit Union in Vienna, Va., the $14.7 billion Mountain America Credit Union in Sandy, Utah, the $1 billion Sandia Area Federal Credit Union in Albuquerque, the $851 million First Financial Credit Union in Albuquerque, Eaglemark Savings Bank in Carson City, Nev., State Farm Bank in Bloomington, Ill., and New Mexico Bank and Trust in Albuquerque.
Benavidez agreed to make restitution to the victims of his crimes in an amount to be determined at a separate hearing. Benavidez must complete a five-year term of supervised release following his imprisonment. His co-conspirator, Edwards, is currently listed as an FBI fugitive.
In his plea agreement, Benavidez also admitted to submitting a false document to the Internal Revenue Service while his auto loan fraud case was pending. This false document purported to designate United States District Judge William P. Johnson as Benavidez’s legal fiduciary. Benavidez knew this designation was false when he submitted the document.
Maron previously pleaded guilty to one count of bank fraud and one count of conspiracy to commit bank fraud. He is scheduled for sentencing on Sept. 2.
The FBI Albuquerque Field Office and Homeland Security Investigations (HSI) investigated this case with assistance from the U.S. Treasury Inspector General for Tax Administration and the New Mexico Office of the Attorney General.
Assistant U.S. Attorneys Taylor F. Hartstein and Sean J. Sullivan are prosecuting the case.
Source: Department of Justice
NM man sentenced for $1.5M auto loan fraud – DOJ – Fraud
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