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Used Car Lot Scam Lands Owners in Prison
Oklahoma City, Oklahoma – In a shocking case of deceit and greed, Timothy Jay Williams, 54, of Edmond, Oklahoma, and Stephen L. Butz, 53, of Blanchard, Oklahoma, were sentenced to serve 41 months and 31 months in prison respectively for their roles in a brazen bank fraud scheme.
The men, who were once the owner and finance manager of Lindsey Street Motors, a used car lot in Norman, Oklahoma, were found guilty of swindling the Bank of Union and other financial institutions out of a staggering $1,260,725.43. The scandal, which dates back to 2016, involved the sale of collateralized vehicles without the knowledge or permission of the Bank of Union, and the use of duplicate vehicle titles to deceive buyers.
According to court documents, Williams and Butz entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors, which granted the bank a secured interest in all used motor vehicles, proceeds, and products of the used car lot. In return, The Bank of Union extended to Williams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold.
However, after obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.
Both Williams and Butz pleaded guilty before United States District Judge Miles La-Grange in August of 2016, admitting that their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00. At their sentencing hearings this week, Williams was sentenced to 41 months in prison, to be followed by 3 years of supervised release, while Butz was sentenced to serve 31 months in prison, also to be followed by 3 years of supervised release.
The case, which was investigated by the Federal Bureau of Investigation, was prosecuted by Assistant U.S. Attorney Julia E. Barry. Mark A. Yancey, United States Attorney for the Western District of Oklahoma, announced the sentencing of the two men, stating that they would face the consequences of their actions.
The sentence serves as a reminder that bank fraud and other financial crimes will not be tolerated, and those who engage in such activities will be held accountable for their actions. The victims of this crime, who were swindled out of $1,260,725.43, can now begin to heal and rebuild their lives, knowing that justice has been served.
Key Facts
- State: Oklahoma
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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