21 Arrested – Largest in County History
San Diego, CA – 21 June 2019 – The biggest auto loan fraud ring in San Diego history has come to an end. District Attorney Summer Stephen announced Thursday that the complex straw purchase and ID fraud enterprise included more than 100 vehicles which were stolen witth an estimated value exceeding $5M dating back to 2016.
Bryan Orr of Clairemont Mesa, CA, is accused of involving his mother and his step-father along with close to 20 others in a complicated criminal ring where high-end vehicles were purchased, paid off and resold while complicit straw buyers claimed their bank accounts had been hacked.
While more than 100 vehicles were identified, fewer than 20 have been located. Officials say that more victims are likely to come forward when they attempt to register a vehicle purchased used.
There are still at least 80 vehicles out on the streets that could be for sale by the perpetrators or in possession of unknowing buyers.
The value of the theft has reached an estimated $5 million and could continue be found to be even higher as the investigation unfolds.
Orr, faces more than 100 years in prison if convicted of all charges and more than 275 felony counts, including money laundering, grand theft and auto theft, have been filed against the co-defendants.
Investigators say Orr, created shell companies and used more than 20 co-conspirators to help him steal cars using identity theft and fraud. The items stolen ranged from high-end luxury vehicles to RVs and jet skis.
“They would create fake lines of credit, fake credit histories, fake documents so that they could use it in their schemes,” said CHP Captain James Portilla. “He would create fake websites so if an institution wanted to verify info on a loan application they would look like there was a legit business.”
In one scam, a straw buyer would purchase and finance a new vehicle. Thereafter, the auto loan would be paid in full by other co-conspirators. Once the title to the vehicle was sent to the purchaser, the vehicle would be immediately re-sold.
Once the sale proceeds were secured, the individuals who made the payments would falsely report the fraudulent use of their bank accounts, leading financial institutions to refund the payments that had been made on the vehicles. Immediately the funds were withdrawn and passed on to Orr, investigators said.
“As newer vehicles become equipped with effective anti-theft technologies, traditional methods of stealing vehicles are not as effective,” said Portilla, “As a result, we have seen an increase in vehicle theft using a variety of fraud schemes.”
Another fraudulent scheme involved the purchase or return of “merchandise” between the various shell companies. Once the seller withdrew the proceeds from the transaction, the buyer would dispute the purchase and receive a provisional credit from the bank. Similar to the vehicle purchase scheme, upon receipt of the refund, the funds would be withdrawn immediately or used to make fraudulent purchases with other “shell companies.” Orr used the shell companies to steal in excess of $2.5 million from banks during this time period, prosecutors said.
Orr has no criminal history and is still in custody on $6 million bail. If convicted, he may face up to 100 years in prison.
Orr has lived in Clairemont Mesa and Mission Valley and owned a warehouse in Mission Valley, officials said. He had no criminal background before he was arrested as part of Operation Blindside.
“He’s kind of a chameleon,” Portilla said.
“Orr presented himself and lived his life as a wealthy CEO but in fact he was nothing but an unemployed con man,” he said.
Fourteen suspects were taken into custody in San Diego, Riverside and San Bernardino counties. One suspect is awaiting extradition from Washington. Six people are still being sought.
Mark Garrett is accused of creating fake websites to help straw purchasers get verified by financial institutions.
Christopher Valdez of Florida, Daniel Ramirez of Los Angeles and Cesar Maldonado of San Jose are accused of creating lines of credit for the straw purchasers.
Orr’s mother Amy Orr Phillips, 51, and his stepfather Lance Philips, 54 face charges of money laundering and grand theft in connection with the case.
Two assault rifles described as “ghost guns” were also seized from Orr in the investigation, Portilla said.
While 21 people face charges, six of them are still wanted in this case.
Source: NBC San Diego
$5M Auto Loan Fraud and Theft Ring Busted in San Diego County
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