Scotch Plains Man Charged In $1.4 Million Auto Loan Scam: Police

Scotch Plains, NJ -- A Scotch Plains employee of a now-defunct Bergen County used car dealership was among six who were charged in connection with a bank financing scam that allegedly netted $1.4 million in fraudulent loans for luxury cars, according to Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor.

Paul Russo, 40, of Scotch Plains, the finance manager of D.I.B Leasing in Teterboro was arrested along with the owner, three employees and the dealer’s bookkeeper on first-degree charges of conspiracy, financial facilitation of a criminal activity, and trafficking in personal identifying information pertaining to another person for allegedly submitting numerous fraudulent car loan applications between August 2012 and February 2015.

This wasn't the first time the dealership was in trouble. The dealership’s finance officer was charged previously with financial facilitation and misconduct by a corporate official in connection with the alleged scam, according to Hoffman.

"Prosecutors allege the defendants created fake employment records, inflated incomes, and supplied false pay stubs and fictitious employee verifications to dupe banks into approving auto financing for customers whose income levels did not qualify them for loans on the pricey vehicles," according to the release.

Four of the loans were taken out in customers' names that never bought cars.

“None of the victims had any idea car loans were taken out in their name until they began receiving bank notices that they were behind on payment for vehicles they didn’t own,” said Acting Insurance Fraud Prosecutor Christopher Iu. “This was a brazen scheme that defrauded consumers and banks alike.”

Along with Russo, charged in the scheme were:

• Patsy Galasso, 75, of Cliffside Park, owner of D.I.B. Leasing
• Hector Marquez, 43, of Monroe, the general manager of the dealership.
• Lisa Ghobrial, 48, of Ridgefield, title manager.
• Jennifer Perez, 30, of Union City, who assisted with loan applications.
• Michael Ricciardi, 53, of Wayne, who did bookkeeping for the dealership.

In addition to the charges above, Galasso, Marquez, Ghobrial, and Ricciardi were all charged with second-degree identity theft, and 62 counts of theft by deception – two in the second degree and 60 in the third degree. Marquez, Galasso, and Ghobrial were also charged with second-degree misconduct by a corporate official.

First-degree crimes carry a sentence of 10 to 20 years in state prison and a criminal fine of up to $200,000; second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000; while third-degree crimes carry a sentence of three to five years in state prison and a criminal fine of up to $15,000.

(Photo provided: Paul Russo of Scotch Plains)