MIDLAND, Texas — A former Odessa auto dealer pleaded guilty Tuesday to an 18-month long scheme that defrauded My Community FCU of $3.9 million.
Raymond Holguin, Jr., 35, was the third man to plead guilty to the fraud. Michael Franco, 40, and Gustavo Pizarro, 37, both of Midland, previously entered guilty pleas to the same charge and are awaiting sentencing.
Holguin, operator of Motor City, an auto dealership in Odessa, Texas; Pizarro, sales manager at Motor City; and, Franco, a loan officer at the credit union, all devised a plan to approve car loans for members who did not meet the CU's lending standards, according to the U.S. Attorney's office. Holguin and Pizarro presented more than 300 auto loan applications to Franco that included false information such as inflated income.
Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount.
Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved.
Franco is scheduled to be sentenced on Nov. 22, and Pizarro Jan. 9. A sentencing date for Holguin has not yet been scheduled.
