Mark Janbakhsh, Bank Fraud, Tennessee 2023

[image description: a photo of Mark Janbakhsh]

Nashville, Tennessee

Mark Janbakhsh, 49, of Brentwood, Tennessee, was found guilty of Conspiracy to Commit Bank Fraud, Bank Fraud, Making False Statements to a Bank, Bankruptcy Fraud, and Making a False Statement Under Oath, announced Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire.

Janbakhsh, the chief executive officer and majority owner of Auto Masters, a car dealership company, conspired with his brother, Ron Janbakhsh, and others to artificially inflate the value of the company’s collateral. This scheme allowed Janbakhsh to draw on lines of credit he was otherwise not entitled to take.

Between 2013 and 2017, Auto Masters had a line of credit with Capital One and First Tennessee Bank (now First Horizon Bank). During the course of the scheme, the company fraudulently obtained approximately $26.4 million that it was not entitled to receive.

Once bank auditors began to investigate financial discrepancies, Janbakhsh directed company employees to delete data, emails, and other company information that would have shown his fraudulent dealings. Auto Masters declared bankruptcy in 2017, and Janbakhsh lied about the fraud while under oath during the bankruptcy proceedings.

Jurors heard evidence that, once Janbakhsh learned that federal agents were investigating the fraud, he offered a co-conspirator over $300,000 to leave the jurisdiction and thwart the investigation.

Janbakhsh faces a maximum term of incarceration of 30 years in federal prison and a maximum fine of $1,000,000 at sentencing, which is set to take place later this year. Judge Waverly D. Crenshaw, Jr. will also consider ordering forfeiture of Janbakhsh’s property.