Alabama car dealers admit bank fraud

NASHVILLE, Tenn. (AP) – Authorities say an Alabama couple has admitted to using their used car business to defraud dozens of banks.

Federal prosecutors in Nashville say Douglas Scott and Azar Ardestani, both of New Market, Alabama, pleaded guilty to bank fraud and conspiracy to commit bank fraud.

Authorities say that as part of their scheme they would secure a loan to purchase a care and then seek multiple loans on the same vehicle from other financial institutions. They were able to secure additional loans on the same vehicle by agreeing to provide as collateral a clear title they had fraudulently obtained.

Authorities say the scheme lasted for nearly five years, involved more than 100 vehicles and 65 financial institutions for a total loss of about $5.9 million.