CLEVELAND, OH – Nicholas J. Henry, 29, of Sheffield, Ohio, is headed to federal prison after being sentenced to 18 months for a brazen wire fraud scheme that ripped off automobile dealerships across the country. U.S. Attorney for the Northern District of Ohio, Steven M. Dettelbach, announced the sentence today, along with a hefty order for restitution totaling $220,532.64.
The scam, which ran from January 1, 2005, through October 15, 2009, involved Henry advertising All Terrain Vehicles (ATVs) and scooters through online platforms under the false business names “China Vehicle Company LTD” and “Scooter Direct.” These entities were never legally registered in Ohio, a key indicator of the scheme’s fraudulent nature. Henry specifically targeted dealerships, promising deeply discounted prices on Chinese-manufactured vehicles for resale.
Here’s how it worked: Henry convinced dealerships to send full or partial payments via wire transfer directly into his personal bank accounts. Immediately upon receiving the funds, he pocketed a commission – between 20 and 25 percent – before even attempting to secure the vehicles from China. He then strung the dealerships along with excuses, ignored complaints, and continued to solicit new orders while failing to deliver on existing ones. A classic con.
Court documents reveal Henry raked in over $266,000 in wire transfers from at least 36 dealerships. Of that amount, he personally pocketed over $143,000, spending it on rent, car payments, utilities, and other personal expenses. Between September 25, 2008, and October 15, 2009, he took in an additional $79,644 in “new” orders, with no intention of ever fulfilling them – or even contacting the Chinese manufacturers.
The Federal Bureau of Investigation’s Elyria Office spearheaded the investigation, building a solid case that led to Henry’s guilty plea on October 23, 2012. Assistant U.S. Attorneys Carol M. Skutnik and Robert W. Kern prosecuted the case. In addition to the prison sentence and restitution, Henry will serve a three-year period of supervised release and pay a $100 assessment to the Crime Victims’ Fund.
This case serves as a stark reminder that online fraud isn’t a victimless crime. Dealerships, and ultimately consumers, bear the brunt of these schemes. Federal authorities are actively pursuing these cases, and the Grimy Times will continue to report on those brought to justice.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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