$550,000 Credit Union Fraud Alleged by Feds

$550k credit union fraud exposed

A Clarksville, Tennessee auto dealer is alleged by the Feds to have applied for over a half-million dollars in loans from eight different credit unions… for the same vehicles.

The owner of First Choice Auto Sales and AJ’s Auto Sales, Andrew Oliver, 31, of Cadiz, KY, pleaded not guilty to one felony count of bank fraud. It is expected, however, that he’ll change his plea during a May hearing.

The feds say Oliver falsified loan application documents and omitted the fact he’d already obtained loans from other credit unions for two of the same vehicles.

Oliver applied for and received $340,000 in loans for a Ford F-450 and applied for $215,000 in loans for a single Cadillac.

Federal prosecutors in the case say the fraudulently obtained loans caused losses totaling $368,585 for seven of the eight affected credit unions.

However, frauds like these could have potentially been detected live, as they were occurring… not $550,000 after the fact.

By implementing transactional artificial intelligence tools, like those custom developed by ToolCASE, credit unions may now have the real-time opportunity to accumulate and analyze loan application data and could be alerted to even the tiniest of anomalies as they occur.

With its far more detailed capabilities to rate personal loan creditworthiness, ToolCASE Ai could have potentially red-flagged Oliver and alerted credit union fraud teams to issues in his applications.

Further, Ai has the potential to detect the duplication of VIN numbers across multiple loan applications, halting the loan requests, immediately.

The $368,585 in this case may be gone forever.

But, by incorporating Ai solutions, especially those provided by ToolCASE, credit unions may find both their and their member assets far better protected from fraud than ever before.

Discover the ToolCASE solution to credit union fraud, HERE

Or read more about Andrew Oliver’s alleged fraud and all the credit unions affected, HERE

Source: https://www.cutimes.com/2022/04/11/feds-accuse-auto-dealer-of-credit-union-car-loan-fraud/