Although taking advantage of a buyback program sounds like a good idea for direct customers, it is illegal for car dealers and results in fraudulent activity.
Unfortunately, a man from Kentucky decided to take advantage of the Toyota 150% buyback program to scam the company for $4.3 million.
Kentucky Dealership Owner Tried to Scam Toyota Out of $4.3 Million
As announced by the Department of Justice, a dealership owner from Kentucky named James Pinson tried to scam Toyota out of $4.3 million as per an initial report from Automotive News.
Pinson took advantage of the company program, which promises a buyback for older "overly rusty" Toyota trucks. Toyota would buy these trucks from customers for 150% of the value listed.
Pinson Tried to Scam Company Using 350 Trucks Bought at a Dealer Wholesale Auction
Although the deal was great for customers, the company specifically barred dealers from joining this program. In order for the con to work out, Pinson went to a dealer wholesale auction to buy 350 trucks.
According to the story by CNET, they are estimating that the trucks were purchased for "pennies on the dollar." After this, the trucks would then be given to random people as long as they had licenses, and the trucks would then be titled in their name.
Pinson Bribed a Service Manager and Toyota Dealership Employee
Pinson then went off to a Toyota dealer located in West Virginia where he proceeded to "bribe a service manager named Frank Russo and another dealership employee Stanley Clark."
The bribe was meant for them to help him process the buyback papers. CNET's report notes that one of the major mistakes that the man made was that he tried to process all of the 350 trucks at just a single dealership.
Pinson to Pay $4.3 Million in Restitution and was Forced to Sell His Beach House
Due to the fraudulent activity, the restitution of $4.3 million must be paid by Pinson, and he shall "give up a beach house in South Carolina." The beach house was reportedly bought with "ill-gotten gains."
To top everything off, Pinson got a six-year sentence in prison while a person named Russo, the manager he bribed, received a two-year prison sentence.
Clark, the employee Pinson bribed, also got a prison sentence, but it is just 15 months.
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Comparison to the 1996 Movie Fargo
The article by CNET likened what Pinson did to a movie called "Fargo," which was released in 1996. In addition, the movie started with a dealership salesman manager who was trying to scam the finance company of a car dealership.
Although a bit extreme, the movie was likened to the situation due to Pinson trying to scam not just any finance company but Toyota itself.
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This article is owned by Tech Times
Written by Urian B.
