Edward M. Yarbrough
United States Attorney
Byron M. Jones
Assistant U.S. Attorney
ELEVEN DEFENDANTS PLEAD GUILTY
IN FRAUDULENT AUTOMOBILE LOAN SCHEME
Nashville, TN - April 22, 2008 - Edward M. Yarbrough, U.S. Attorney for the Middle District of Tennessee and My Harrison, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, announced today that eleven individuals pled guilty in federal court for their role in a scheme to fraudulently obtain automobile loans from a federal credit union in Clarksville, Tennessee.
Robert L. Manigo, 40, of Clarksville, Tennessee, James K. Elliott, 32, of Linden, North Carolina, Felita K. Elliott, 30, of Spring Lake, North Carolina, Maxi Necole Brown, 30, of Montroe, Louisiana, Monica M. Hart, 33, of Linden, North Carolina, Curtis L. Elliott, 26, of Linden, North Carolina, Larry A. Elliott, 32, of Murphysboro, Illinois, John F. Hart, 33, of Spring Lake, North Carolina, Travis D. Elliott, 24, of Bunnlevel, North Carolina, Nekita L. McDougald, 31, of Spring Lake, North Carolina, and Leonard N. Harris, 26, of Bunnlevel, North Carolina each pled guilty to one count of an indictment filed last September. Specifically, Robert L. Manigo and James K. Elliott pled guilty to financial institution fraud, in violation of Title 18, United States Code, Section 1344. Felita K. Elliott, Maxi Necole Brown, Monica M. Hart, Curtis L. Elliott, Larry A. Elliott, John F. Hart, Travis D. Elliott, Nekita L. McDougald, and Leonard N. Harris, each pled guilty to conspiracy to commit financial institution fraud, in violation of Title 18, United States Code, Section 371. According to facts alleged in the indictment and admitted by the defendants at the plea hearings, in the early part of 2003, Fort Campbell Federal Credit Union (FCFCU) initiated a "first time car buyer" loan program for automobile loans of $10,000 or less. Robert L. Manigo, an employee of the Mathews Nissan car dealership in Clarksville, Tennessee contacted James K. Elliott, a former Army acquaintance, to tell him about FCFCU's new loan program. Manigo and Elliot subsequently devised a scheme to obtain vehicles by using fraudulent information to secure car loans from FCFCU. Manigo told Elliot the dealership would pay Elliot $100.00 for each buyer that Elliot brought to the dealership who purchased a car.
Elliott recruited his wife, Felita K. Elliott, to participate in the scheme. On May 23, 2003, Felita K. Elliott purchased a silver 2001 Chevrolet Impala from Mathews Nissan for $9,999.18, all of which came from FCFCU on May 23, 2003 based upon a loan application that Felita Elliott submitted to the credit union. Felita Elliott provided a false social security number in order to obtain a membership with FCFCU and to apply for the loan. Felita Elliott also presented a false pay stub to FCFCU to obtain the loan. Manigo was the salesman on this car, and he knew the information provided by Felita Elliott to obtain this loan was materially false.
On June 6, 2003, Maxi Necole Brown obtained a 2001 red Chevrolet Impala from Mathews Nissan for $11,166.18, $10,099.00 of which came from FCFCU. Brown provided a false social security number in order to obtain a membership with FCFCU and to apply for the loan. Brown also presented a false pay stub to the credit union to obtain the loan. The false pay stub was provided to her by James Elliott.
On June 23, 2003, Monica Hart obtained a 2001 silver Chevrolet Impala from Mathews Nissan for $11,000, $10,000 of which came from FCFCU pursuant to a loan application she submitted to FCFCU. Hart provided a false social security number in order to obtain a membership with FCFCU and to apply for the loan. Hart also presented a false pay stub to FCFCU to obtain the loan. In addition, Hart provided a false address, false telephone number, and false employer to the credit union.
On August 12, 2003, Curtis L. Elliott purchased a 1998 Explorer from Mathews Nissan for $9,652.50, $9,352.50 of which came from FCFCU through a loan application he submitted on August 12, 2003. Curtis L. Elliott provided a false social security number in order to obtain a membership with FCFCU and to apply for the loan. Curtis L. Elliott also presented a false pay stub to FCFCU to obtain the loan. James K. Elliott provided the false pay stub to Curtis L. Elliott. In addition, Curtis L. Elliott provided a false address, a false telephone number, and a false employer to the credit union.
In August of 2003, Larry A. Elliott opened an account at FCFCU. Larry A. Elliott provided a false social security number to FCFCU to obtain a membership. Larry A. Elliott then provided a false social security number, address, employment and telephone number to FCFCU in a loan application dated August 26, 2003. Larry A. Elliott obtained a loan of approximately $10,188.00. James K. Elliott provided the false pay stub for Larry A. Elliott to use to obtain this loan.
John F. Hart traveled from North Carolina to Clarksville, Tennessee in August 2003 to purchase a 1999 Voyager Van by obtaining an approximately $9,131,50 loan from FCFCU. Hart provided a false social security number to obtain membership in the FCFCU. Hart also provided a false social security number to the credit union and car dealership by reversing the last four digits of his social security number. James K. Elliott and Robert Manigo told Hart what to write on the loan application. Hart also provided a false home address and false information about his employment to FCFCU.
In September 2003, Travis D. Elliott and James K. Elliott traveled from North Carolina to Clarksville, Tennessee to purchase a S-10 Chevrolet by obtaining a false loan from FCFCU in the approximate amount of $10,000. On September 8, 2003, Travis D. Elliott obtained a white 2000 Chevrolet S-10 truck from Mathews Nissan for $10,800, $10,000 of which came from FCFCU through a loan application requesting that amount, which he submitted to the credit union on September 9, 2003. Travis D. Elliott also presented a false pay stub to FCFCU to obtain the loan. In addition, Travis D. Elliott provided a false address, false telephone number, and false information about his employment to FCFCU.
On September 9, 2003, Nekita L. McDougald purchased a 1998 Altima from Mathews Nissan by obtaining a loan from FCFCU. The loan application was submitted to FCFCU in September 2003. James K. Elliott provided her with a false pay stub. McDougald provided a false social security number, address, employment information, and a bogus telephone number to FCFCU to obtain the loan. McDougald obtained a loan of approximately $7,871.50 from FCFCU to purchase the vehicle.
In September 2003, Leonard N. Harris and James K. Elliott traveled to Clarksville, Tennessee, to purchase a 2000 Intrigue from Mathews Nissan for approximately $7,421.08, $7,222.50 of which came from FCFCU through a loan application dated September 23, 2003. Harris provided a false social security number to obtain a membership with FCFCU and to apply for the loan. Harris presented a false pay stub to FCFCU to obtain the loan. James K. Elliott provided the false pay stub to Harris. In addition, Harris provided a false address, a false telephone number, and a false employer to the credit union.
The total amount of the loans fraudulently obtained from the FCFCU as part of this scheme was approximately $83,972.76. All of the automobiles purchased in this scheme were repossessed by the FCFCU. The loss to the FCFCU after the resale of those automobiles was approximately $43,864.00.
Sentencing hearings will be scheduled for each of the defendants in approximately ninety days.
Mr. Yarbrough stated, “The United States Attorney’s Office and our law enforcement partners take seriously allegations of loan fraud perpetrated against federally insured financial institutions. Loan fraud threatens the health of our financial institutions and our economy. Loan fraud schemes like the one in this case must not be tolerated.”
The investigation was conducted by the Federal Bureau of Investigation. The United States is being represented by Assistant United States Attorney Byron M. Jones.