NORFOLK, Va. – A used car dealer who used straw borrowers to siphon almost $1.6 million in auto loans from Navy FCU was sentenced this afternoon to seven years in prison, with the judge rejecting his pleas for leniency, even to let him remain free a few weeks to attend his daughter’s high school graduation.
Jady Brooks, 39, used straw borrowers to obtain 38 loans from the credit union in 2008 and 2009 for vehicles that did not exist, and had the borrowers sign over most of the proceeds to him. He even created phony bills of sale to further the scheme that cost the credit union giant almost $1 million in losses. At the time, he worked for a used-car dealer in Rocky Mount, N.C.
As part of the scheme, Brooks prepared false tax returns, W-2 forms, pay stubs and lease agreements to support the fraudulent applications submitted to Navy Federal.
The borrowers, who were not identified, believed Brooks was getting them personal loans. Of the 38 borrowers, 12 have fully repaid the credit union and others have repaid part of their loans.
