Owner of Car Dealership From Egg Harbor, NJ, Sentenced For Fraud

A man from Egg Harbor Township has been sentenced for his role in engaging in fraudulent activity through his car dealership.

Federal authorities say 40-year-old Afzal "Bobby" Khan previously pleaded guilty to one count of wire fraud. On Wednesday, he was sentenced to 24 months in prison.

According to U.S. Attorney Philip Sellinger's office, from at least December 2013 through September 2014, Khan, through his car dealership, Emporio Motor Group of Ramsey, NJ, engaged in acts to defraud lenders and customers.

Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title.

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As a result, the people who bought those vehicles were liable for the loans but could not register them.

In addition, Khan offered to sell cars for individuals on consignment, but did not return the cars or provide any money to the individuals from the sale of the cars.

Khan admitted that as a result of his actions, he exposed the victim bank to a potential loss of at least $550,000.

In addition to the prison term, Kahn was sentenced to three years of supervised release and ordered to forfeit $1.1 million. Restitution will be determined at a later date.