BIRMINGHAM — A 59-year-old Jasper car dealership executive is facing federal charges after allegedly siphoning more than $900,000 from the very businesses he was hired to run. Robert Edwin Maloy, former president and general manager of Maloy Ford Lincoln and Maloy Automotive Group, was indicted on 15 counts including one count of conspiracy, eleven counts of wire fraud, and three counts of mail fraud, according to a federal grand jury.
Maloy, who held a minority stake in both Maloy Ford and Maloy Chrysler Dodge Jeep Ram, exploited his executive authority from 2010 to December 2013 to orchestrate a scheme that inflated service contract costs charged to customers. The indictment alleges he colluded with an employee at Premium Dealer Products, a broker selling vehicle service plans, to pad invoices with an ‘over remittance’ — extra charges passed through dealership checks and funneled back to Maloy under the table.
Those illicit overages were routed through third-party service providers, sent to Premium Dealer Products, then handed to Maloy in cash or checks made out to Maloy Automotive, a separate used-car business he owned. Maloy deposited the money into a personal bank account unaffiliated with the dealerships and concealed the transactions from the actual owners, federal prosecutors say.
The fraud didn’t stop at inflated contracts. In 2009, Maloy secured a $250,000 loan from Access Insurance Services for Maloy Automotive, with help from the principal of Premium Dealer Products. Between April 2011 and April 2013, Premium Dealer Products diverted portions of the scam’s proceeds to make payments on Maloy’s behalf, laundering stolen funds to cover personal debt.
Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The conspiracy charge alone could land Maloy up to five years behind bars and an additional $250,000 penalty. The FBI led the investigation, with Assistant U.S. Attorney Robin Beardsley Mark prosecuting.
The case, filed in U.S. District Court, shines a light on corruption festering within family-run auto operations once considered above board. Maloy, 59, now stares down a federal indictment that could dismantle decades of business standing — and land him in prison for nearly two decades.
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Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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