Six people are facing federal charges for trying to defraud Nissan North America. According to the US Attorney’s office in Nashville, 44 year old Kenneth Carter worked as an arbitration specialist for the Franklin-based automaker, where he helped settle warranty claims filed by Nissan owners.
More from a Justice Department press release:
“The indictment alleges that from March 2007 through April 2008, the defendants defrauded Nissan by filing false claims under the ‘Federal Warranty Act’. To accomplish the scheme, the defendants, and/or others acting on their behalf, would approach individuals who owned Nissan vehicles to obtain information such as the owner’s name, address, and vehicle identification number.
Carter then used the information to create and cause to be filed, false and fraudulent claims on behalf of the Nissan owners, requesting compensation in the form of settlement checks. Once the checks were issued by Nissan, the defendants directed the Nissan owners to cash the checks or deposit the checks into their bank accounts. Thereafter, the defendants instructed the Nissan owners to pay them a portion of the funds they received from Nissan, with a portion of those funds kicked back and shared between Carter and the other defendants.”
Prosecutors say Carter created nearly 80 false claims, resulting in more than half a million dollars in payouts.
Others named in the indictment are:
- Francisco DeLaRosa, 40, of West Covina, California
- Adrian Franklin, 39, of Chandler, Arizona
- Bruce Young, 49, of Compton, California
- Tracey Young, 45, of Los Angeles, California
- Wendell Young, 45, of Inglewood, California
All six named in the indictment face multiple charges of mail fraud, money laundering, conspiracy, and obstruction of judgement. A Nissan spokesman declined to comment on the accusations.