Source: US FBI
NASHVILLE –A federal jury convicted Mark Janbakhsh, 49, of Brentwood, Tennessee, of Conspiracy to Commit Bank Fraud, Bank Fraud, Making False Statements to a Bank, Bankruptcy Fraud, and Making a False Statement Under Oath announced Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire.
“Our office will vigorously pursue dedicated fraudsters like the defendant who lie and cheat for their own gain, and we’re not afraid to make our case to a jury to hold them accountable for their crimes,” said Acting United States Attorney Robert E. McGuire. “I commend the prosecutors and the federal agents who spent years uncovering this scheme, bringing it to light, and achieving a just result for our community.”
According to the evidence presented at trial, Janbakhsh was the chief executive officer and majority owner of a car dealership company named Auto Masters. Between approximately 2013 and 2017, Auto Masters had a line of credit with Capital One and First Tennessee Bank (now First Horizon Bank). According to the evidence, Janbakhsh conspired with his brother, Ron Janbakhsh, and others in the company to submit false documentation to Capital One to artificially inflate the value of the company’s collateral which would allow Janbakhsh to draw on lines of credit he was otherwise not entitled to take. During the course of the scheme, Auto Masters fraudulently obtained approximately $26.4 million that it was not entitled to receive.
Once bank auditors began to investigate financial discrepancies in Auto Masters’ submissions, the evidence showed that Janbakhsh directed company employees to delete data, emails, and other company information that would have shown his fraudulent dealings. Auto Masters declared bankruptcy in 2017 and, according to the evidence at trial, Janbakhsh lied about the fraud while under oath during the bankruptcy proceedings.
Jurors heard evidence that, once Janbakhsh learned that federal agents who were investigating the fraud were attempting to speak with co-conspirators, he offered one co-conspirator over $300,000 if the person would leave the jurisdiction in order to thwart the investigation.
Janbakhsh will be sentenced later this year. At sentencing, Janbakhsh faces a maximum term of incarceration of 30 years in federal prison and a maximum fine of $1,000,000. At sentencing, Judge Waverly D. Crenshaw, Jr. will also consider ordering forfeiture of Janbakhsh’s property.
The case was investigated by the Federal Bureau of Investigation, Nashville Field Office, and IRS Criminal Investigation.
Assistant U.S. Attorneys Kathryn R. Booth and J. Christopher Suedekum prosecuted the case.
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