Fake Car Loans, Real Prison Time – Used Car Dealer Jailed in $2 Million Fraud

Used car salesman sentenced to six years in prison for fraud

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Norfolk, VA – January 14, 2026 – In a crafty scam that preyed on the trust of multiple lenders, a used car dealer masterminded a multimillion-dollar fraud involving loans for vehicles that existed only on paper. While the lenders are left to absorb massive losses, the architect of this elaborate deception now faces serious prison time.

According to court documents, Adrian Knight, 41, owned Ace Auto Sales, LLC in Chesapeake. From March 2019 to January 2023, Knight engaged in a fraud conspiracy in which he and co-conspirators listed Ace as the seller of automobiles in buyers’ agreements or buyers’ orders that accompanied fraudulent loan applications to various financial institutions for automobiles that were not in Ace’s inventory. Knight recruited the co-conspirators and was the leader of the operation.  The conspirators provided false information, such as altered vehicle identification numbers and false income and employment data, to obtain the loans.

After the financial institutions provided loan funds to Knight and others, Knight would retain a portion of the proceeds and share the remainder with his co-conspirators. The conspirators would then default on the loan or claim the loan was filed through identity theft, and the banks or their insurers were left with the loss. No automobiles were purchased with these loan proceeds. The fraud victimized two dozen financial institutions and resulted in over $2 million in fraud loss.

“Adrian Knight conspired to profit from exploiting financial institutions that serve honest consumers,” said Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia. “These schemes undermine legitimate lending and drive up costs for borrowers. We will continue to ensure that markets remain fair, transparent, and trustworthy, and that those who manipulate the system for personal gain are brought to justice.”

Knight was sentenced to six years in prison for conspiracy to commit mail, bank, and wire fraud; wire fraud; and bank fraud.

Assistant U.S. Attorney Clayton D. LaForge prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:25-cr-46.

Contact

USAVAE.Press@usdoj.gov

U.S. Attorney’s Office, Eastern District of Virginia

Fake Car Loans, Real Prison Time – Used Car Dealer Jailed in $2 Million Fraud – Fake Car Loans, Real Prison Time – Used Car Dealer Jailed in $2 Million Fraud – Fake Car Loans, Real Prison Time – Used Car Dealer Jailed in $2 Million Fraud

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