LOS ANGELES – Eminiano “Jun” Reodica Jr., 72, a once-powerful figure in the auto industry, received a 120-month federal prison sentence today for orchestrating a brazen bank fraud scheme that bilked lenders out of over $64 million in the 1980s. The scheme was so devastating it directly contributed to the collapse of Imperial Savings, leaving countless victims in its wake.
U.S. District Judge S. James Otero didn’t mince words, calling Reodica’s actions “extremely serious.” The judge detailed the “much disruption, much heartache” caused by the fraud, emphasizing the sheer number of individuals and institutions harmed. Prosecutors argued the scale of the deception was “virtually unparalleled,” and underscored the devastating impact on the financial institutions Reodica preyed upon, as well as members of the Filipino community.
Reodica, who vanished from the United States in the summer of 1988, remained a fugitive for nearly three decades. He was finally apprehended at Los Angeles International Airport in late 2012 during a layover en route from Australia to Canada. In October 2015, on the eve of trial, Reodica pleaded guilty to 26 counts of bank fraud and making false statements to financial institutions. The fraud targeted at least five banks: Union Bank, First Los Angeles Bank, Manilabank, First Central Bank, and Imperial Savings.
At its peak, Reodica’s Glendora-based Grand Wilshire Group (GWG) of Companies boasted about two dozen dealerships, including the massive Grand Chevrolet in Glendora, becoming the second-largest Chevrolet dealership in the US and the third-largest overall. His apparent success even led to a brief appointment to the California Department of Motor Vehicles board by then-Governor George Deukmejian – a position he lost when the fraud came to light. GWG operated by pledging car contracts as collateral for lines of credit, promising banks funds collected from customer loan payments.
The scheme was built on lies and forgery. Reodica repeatedly promised the same car contract as collateral to multiple banks simultaneously. He directed employees to forge customer signatures on contracts destined for a second lender. He also concealed delinquent loans, even using GWG funds to make payments to keep the fraud afloat. He even pressured employees into fraudulently signing for loans they didn’t make, inflating the lines of credit he secured. When the scheme unraveled in August 1988, GWG and Grand Chevrolet plummeted into bankruptcy, prompting Reodica’s hasty escape.
The fallout extended beyond the banks, hitting individual investors, many from the Filipino community in Los Angeles, who placed their trust in Reodica. The sentencing serves as a stark reminder that even decades-old crimes will be pursued, and those who exploit the financial system for personal gain will ultimately face justice. The case highlights the lasting damage caused by white-collar crime and the importance of holding perpetrators accountable, regardless of how long they evade capture.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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