Preventing Car Dealer Employee Fraud with Background Checks

A salesman at a used car dealership in Connecticut has been sentenced for his role in an auto loan fraud scheme.

The dealership employee defrauded automobile loan lenders of over $260,000.

The kicker? The employee had been convicted of a similar type of crime in the mortgage lending business, and was on a federal supervised release at the time he committed this crime.

A simple criminal background check could have prevented this type of fraud. A pre-employment screening would have revealed the previous criminal offense and kept the employee from gaining access to this dealership’s credit and clients, ultimately ruining their reputation.

This is not an isolated case. Auto dealer employee fraud and embezzlement has cost the auto industry millions of dollars:

  • A dealership employee was charged with being the mastermind of an employee pricing fraud scheme that cost Fiat-Chrysler Automobiles over $8 million. He worked undetected for years.
  • A Porsche dealership employee in Florida defrauded customers of over $2.5 million.
  • An employee of a South Carolina auto dealer – the comptroller – was charged with embezzling over $2 million.

Automobile industry employee crimes, theft, embezzlement, and fraud can be reduced or avoided with employee background checks. These screenings do not cost much, do not take much time, and greatly reduce the risk of hiring someone who takes the dealership – or their lenders – for a fraudulent financial ride.

Car dealer pre-employment screenings are one of Five Diamond Screening’s mainstays. We understand the auto industry’s hiring needs, and are here to help 24/7.

Edward Robusto, President and CEO

Edward is a businessman and consultant with more than 30 years of experience helping companies grow. He built a successful nationwide insurance agency while attending undergraduate school. Edward is an Industrial and Organizational Psychologist and holds a Bachelor of Arts in Behavioral Sciences and three Master’s Degrees (Teaching, Curriculum Development, and Organizational Leadership).