ERIE, Pa. – In a stunning revelation from the United States Attorney’s Office in Pennsylvania, Andrew Gabler, 51, and Chad Bednarski, 49, have both pleaded guilty to conspiracy to commit fraud in federal court. The duo, who helmed Lakeside Auto Sales and Lakeside Chevrolet, were caught engaging in a multi-year scheme that defrauded financial institutions, customers, and even General Motors.
According to the charges, Gabler, as the owner, falsely reported down payments and exaggerated customer income on auto loan applications. He also allegedly sold extended warranties to unsuspecting buyers, pocketing the money without remitting it to the warranty company. Furthermore, Gabler and Bednarski are accused of reporting false vehicle sales to General Motors to claim expiring rebates.
The investigation revealed that the pair intentionally failed to inform S&T Bank about vehicle sales financed through the bank’s floor plan, aiming to delay payments and dodge their financial obligations. The deceitful tactics spanned from January 2015 to January 2019.
Judge Susan Paradise Baxter has set sentencing for Gabler and Bednarski for January 6, 2021, with Gabler due at 10:00 a.m. and Bednarski at 1:30 p.m. The law allows for a maximum sentence of 30 years in prison, a fine of $1,000,000, or both.
Assistant United States Attorney Christian A. Trabold is handling the prosecution of this case on behalf of the government. The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police.
Both Gabler and Bednarski remain on bond pending sentencing.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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