Andysheh Ayatollahi, Financial Institution Fraud, Virginia 2008

NORFOLK, Va. – A used car dealership owner has been sentenced to 74 months in prison for defrauding Navy Federal Credit Union, authorities announced today. Andysheh Ayatollahi, 36, formerly of Virginia Beach, Virginia, was also ordered to pay $980,541.43 in restitution and serve 4 years of supervised release.

Ayatollahi pleaded guilty on March 14, 2016, to conspiracy to commit financial institution fraud and filing a false tax return. According to court documents, Ayatollahi purchased a 50 percent interest in The Car Store, a used car dealership located in Virginia Beach, in July 2007. From then until May 2008, when the dealership closed, Ayatollahi conspired with others to defraud Navy Federal Credit Union.

The scheme involved using individuals as straw buyers/borrowers to apply for car loans from Navy Federal Credit Union. Ayatollahi and his co-conspirators engaged in various fraudulent practices, including submitting false car loan applications with supporting documents, making telephone calls to the credit union impersonating buyers, and inflating the true purchase price of vehicles.

In total, Ayatollahi fraudulently caused Navy Federal Credit Union to issue 61 car loans with a total loan amount of $1,168,904.97. Most of these loans went into default, resulting in a loss to the credit union of approximately $867,448.43. Ayatollahi also filed false tax returns with the IRS that underreported his income for tax years 2005-2007, resulting in a tax loss of $113,093.

The case was prosecuted by Assistant U.S. Attorney Alan M. Salsbury. U.S. District Judge Raymond A. Jackson presided over the sentencing hearing. The investigation was conducted by the FBI’s Norfolk Field Office and the IRS-Criminal Investigation’s Washington Field Office.

The U.S. Attorney’s Office for the Eastern District of Virginia made the announcement after sentencing. A copy of the press release may be found on the office’s website. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10cr15.

Ayatollahi’s sentence serves as a reminder of the consequences of financial institution fraud. The investigation and prosecution of this case demonstrate the commitment of law enforcement agencies to protecting the public and holding accountable those who engage in such crimes.

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