Associated Press
SPOKANE — A former Cheney car dealer has been indicted for bank fraud for allegedly using customer’s credit information to obtain phony car loans.
An arrest warrant was issued Tuesday for Keith L. Jones immediately after an eight-count indictment was returned by a federal grand jury in Spokane.
Jones, whose sales pitch was, "We take care of the little guy," may be in Louisiana or Oregon and is being sought by the FBI.
His attorney, P.J. "Dutch" Wetzel, said Tuesday he was attempting to make arrangements to have his client surrender. Wetzel had no comment Tuesday on the charges.
Jones is accused of defrauding Bank of America out of $325,000 by submitting false loan documents for eight vehicles. Some customers never saw or took possession of the cars, and found out their names were on new-car loans when they received the paperwork in the mail.
James Reeves of Medical Lake received a letter from Bank of America shortly after he paid cash for a $32,000 Chevrolet Trailblazer at Choice Chevrolet.
"I got a letter from the bank thanking me for buying a car," Reeves said. "I never bought a car on credit in my life, so I damn near had a heart attack," said the 66-year-old store manager. "I paid cash for that rig, and now they were saying I owed this money."
Another customer said she was suspicious when she was asked for her bank personal identification number to activate the car’s global positioning system. She later called OnStar and was told the dealer didn’t need her PIN.
The transactions occurred in late August, shortly before Jones disappeared and Choice Chevrolet in Cheney abruptly closed.
Within days, representatives of General Motors Acceptance Corp. showed up and seized approximately 100 new vehicles on the Choice Chevrolet lot.
Equipment at the dealership was sold at an auction a couple of weeks ago.
Assistant U.S. Attorney Tom Rice said each count of bank fraud carries a maximum penalty of up to 30 years in prison and a $1 million fine.
The investigation of Jones began when customers who had visited Choice Chevrolet filed complaints with the Cheney Police Department.
"They were concerned that something was happening that was going to rip them off," Cheney police Sgt. Allen Bremner said.
Public records show the state attorney general’s consumer protection office received five complaints about alleged fraud at Choice Chevrolet between February and November.
No formal action was taken, but those cases apparently were reviewed by the FBI, which took over the investigation from Cheney police in September.
Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
