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CAR DEALERSHIP CHARGED WITH BANK FRAUD

 CAR DEALERSHIP CHARGED WITH BANK FRAUD
 BOSTON, June 10 /PRNewswire/ -- A Rockland, Mass., automobile


dealership has been charged with 20 counts of bank fraud in connection with a "floor-plan financing" arrangement.
 U.S. Attorney A. John Pappalardo announced today the filing of an information charging Rockland Motors, Inc., 7 Market St., Rockland, Mass., with bank fraud. According to the information, Rockland Motors, Inc. entered into a credit arrangement with Rockland Trust Company commonly referred to as "floor-plan financing" that enabled Rockland Motors, Inc. to draw down a line of credit to purchase automobiles for its inventory and to repay Rockland Trust Company when each vehicle secured by the arrangement was sold. On 20 separate occasions between December 1989 and November 1990, Rockland Motors, Inc. failed to meet its obligation to repay the Rockland Trust Company when secured automobiles were sold to customers. On several occasions representatives of Rockland Motors, Inc. misled representatives of Rockland Trust Company who visited the auto dealership to conduct a "floor plan check." When the lender's representatives inquired as to the whereabouts of vehicles that were supposed to be covered by the financing arrangement, Rockland Motors, Inc. representatives offered various excuses, including claiming that particular vehicles were in transit, were being used as a "demo" vehicle, or were being repaired.
 If convicted, Rockland Motors, Inc. faces fines of up to $10,000 on each count on the information.
 The case was investigated by Special Agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul G. Levenson of Pappalardo's Economic Crimes Division.
 -0- 6/10/92
 /CONTACT: Press Officer in the U.S. Attorney's Office, 617-223-9445/


DD -- NE012 -- 9018 06/10/92 18:08 EDT
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Publication:PR Newswire
Date:Jun 10, 1992
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