Ohio, Texas Men Plead Guilty in $2.6M Auto Loan Fraud

COLUMBUS, Ohio — A $2.6 million auto loan fraud scheme that bled nine financial institutions dry has ended in guilty pleas from two men at the center of the scam. Albert Watson, 37, of Columbus, Ohio, and Rassaun E. Johnson, 46, of Texas, admitted in U.S. District Court yesterday to orchestrating a years-long fraud that exploited eligibility-based credit unions and hollow loan applications.

The scheme, which ran from August 2014 to April 2018, relied on recruiting members qualified for exclusive financial institutions like USAA, Navy Federal Credit Union, and Pentagon Federal Credit Union. Once accounts were established, Watson and Johnson flooded the lenders with fraudulent auto loan applications, often inflating vehicle sale prices or fabricating sales entirely. In many cases, no car changed hands — just cash.

Court documents reveal the fraud evolved from minor price padding to outright fabrication. At its peak, the duo submitted multiple loans for the same vehicle, knowing full well the transactions were ghosts. Some loans reached as high as $40,000, with no intention of repayment or transfer of ownership. The total damage: $2,680,423.26 in fraudulent loans disbursed by unsuspecting institutions.

Both men pleaded guilty to one count of conspiracy to commit bank fraud — punishable by up to 30 years in prison — and one count of conspiracy to commit money laundering, carrying a maximum 20-year sentence. The charges reflect the calculated, layered nature of the operation, which laundered illicit gains through a web of fake transactions and recruited third parties to act as straw borrowers.

As part of their plea agreements, Watson and Johnson have agreed to pay full restitution of more than $2.6 million. The funds will be sought through asset forfeiture and court-ordered repayment, though recovery for the credit unions remains uncertain.

Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, praised the joint investigation by IRS Criminal Investigation and the U.S. Secret Service. Assistant U.S. Attorney Peter K. Glenn-Applegate is prosecuting the case. Sentencing is scheduled for a later date before U.S. District Judge Michael H. Watson.

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