Three Arrested in Credit Union “Phantom Auto Loan” Fraud Ring

Space Coast Credit Union, and others defrauded for over a million dollars

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Hialeah, FL – October 13, 2025 – Over the past few years, Florida has become the nation’s hotbed for auto loan fraud and the Miami-Dade County Detectives have been hard at work. In addition to the “credit bust out” fraud ring recently busted wide open, they now have a big bust in the “Phantom Auto Loan” racket and three men are behind bars.

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What is a “Phantom Auto Loan”?

A “Phantom Auto Loan” is a loan on a car that either does not exist, had been exported, or had altered identification numbers. This scheme involves further fraud by the submission of false documentation for the purchase of the vehicles, usually to person with falsified identification.

“These individuals managed to get loans approved by banks, but the cars either did not exist or had been exported, leaving financial institutions with loans that had no real backing,” the Sheriff’s Office report states.

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Red Handed

Detectives had been aware of the fraud for some time when their operation culminated in the arrest of the suspects at the Space Coast Credit Union branch on W 49th Street in Hialeah, while they were attempting to secure another fraudulent loan.

In that attempt, Alexis Fonseca Espinosa, accompanied by Hugues Edouard, presented himself as a potential buyer interested in acquiring a Mercedes Benz vehicle.

The alleged seller was Ray Rodríguez.

But as the investigation unfolded, Detectives discovered that the vehicle being offered as collateral has been in the Dominican Republic since 2023, exposing the car as being used in a “Phantom Loan Fraud” attempt.

In their continued investigation, Detectives  found that in addition to the phantom car, the defendants allegedly submitted false employment and income documents. Methods of operation consistent with the network’s operational fraud methods.

The arrested , whose nationalities have not been disclosed, have been identified as Ray Rodríguez, Alexis Fonseca Espinosa, and Hugues Edouard.

The men stand accused of multiple crimes, including organized fraud, document forgery, and grand theft. All three were reportedly transferred to the Turner Guilford Knight (TGK) detention center in Miami-Dade.

According to police, the network had been very busy and managed to defraud several banking entities, including Space Coast Credit Union, by more than one million dollars.

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The Accused Kingpin

The alleged central player in the scheme is reported to be Ray Rodríguez, owner of a supposed car trading company called EDF Auto Sales / Import and Export Auto Sales, based in Hialeah. It is alleged that this company operated as a front to simulate the fraudulent auto sales of the “Phantom Cars.”

Investigators believe that The authorities believe that Rodríguez may be responsible for at least ten fraudulent loans totaling over $647,000. It is worth noting that this fraud was perpetrated in multiple Space Coast Credit Union branches.       

According to investigators, in most instances the scheme operated as such:

• Rodríguez (Dealer) acted as the supposed “seller”.
• Fonseca or Edouard posed as “buyers”.
• The “buyers”, presented forged documents. (Vehicle titles, fabricated sales contracts, and proof of employment.
• Loan Approval – Check goes to Rodriguez’ dealership.

Investigators also discovered that none of the vehicles for which credit was requested were registered in the name of the alleged buyers. In some cases, the vehicles didn’t even exist; in others, the vehicle identification numbers (VIN) had been altered.

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Family Ties

Miami-Dade County investigators also discovered that relatives of the accused may be involved in similar operations. The case remains open as authorities do not rule out further arrests in the coming days. Detectives believe that the sophistication of the scheme and its systematic nature suggest the possibility of a broader network of collaborators.

This rash of “Phantom Auto Loans” has not only raised alarms among authorities but has also raised serious concerns across financial institutions in all of South Florida. Many auto lenders in this area are reportedly busy reviewing their portfolios searching for similar patterns to this under their own roofs.

Although the figures could rise, the losses currently amount to over one million dollars. The damage done by this fraud will be better known the further this investigation proceeds.

Not in southern Florida and not worried? You should be. If this fraud isn’t already embedded into your portfolio, it probably has been or will be. It’s been going on for a long time, all over the country.

Just hope your local PD or Sherrif’s department is a diligent in pursuing it as those in Miami-Dade County.

Source: Cibercuba.com

Three Arrested in Credit Union “Phantom Auto Loan” Fraud Ring – Three Arrested in Credit Union “Phantom Auto Loan” Fraud Ring – Three Arrested in Credit Union “Phantom Auto Loan” Fraud Ring

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