Orange County's Credit Union has filed suit in Superior Court of the State of California against multiple individuals and related business entities, alleging the group conspired to defraud the credit union through bogus automobile loans.
Many of the companies allegedly involved in the ring have similar names, such as Duty Free Car Payment, Duty Free Car Connection, and CFCP Capital Investment Corp.
The suit alleges that the defendants enticed straw buyers to allow their names and credit histories to be used in applying for auto loans on vehicles that they then turned around and sold or leased to other parties. The credit union said the new buyers are enticed by low prices on the vehicles, with the seller suggesting the prices are the result of duty-free status.
