OKLAHOMA CITY An automobile dealer was sentenced yesterday to 16 months in prison for bank fraud and ordered to pay Municipal Employees CU $200,800 restitution for a scheme in which he used the same cars on his lot to collateralize loans from the credit union and another lender.
Langley took out duplicate loans from a credit union by pledging his inventory as collateral after securing a loan with another lender, Floorplan Xpress, LLC-OK, a financing company that specializes in lending money to car dealers, with the same vehicles. As a result, Langley defaulted on the loans and the credit union was unable to take title to the vehicles because of its secured interests were subordinated to those of Floorplan Xpress.
He then sold the vehicles without notifying the credit union.
Langley, 62, who owned and operated J&K Langley Corp., was convicted of making a false statement to a federally insured credit union. His business sold used cars in Oklahoma City under the name Bargain Network Auto Sales.
Langley was also ordered to pay Floorplan Express $75,400 restitution.
