BOSTON -- A New Bedford car dealer was arrested Wednesday on charges he defrauded Shawmut Bank out of $443,000.
George M. O'Hara Jr., of South Dartmouth, surrendered to the FBI in Boston one day after a federal grand jury indicted him on 32 counts of bank fraud.
O'Hara is the president of George O'Hara Chevrolet-Cadillac Inc.
He allegedly sold at least 32 vehicles without informing Shawmut Bank or giving it the proceeds from the sales. Shawmut put up the money for the cars under a 'floor-plan' line of credit.
To conceal the sale of the vehicles, O'Hara allegedly concocted stories to convince the bank the cars were still in stock.
The FBI said bank auditors were erroneously told the cars were being repaired or customized, used as 'demos,' or loaned to customers whose vehicles were being repaired.
O'Hara also allegedly directed his employees to submit false information on monthly financial statements to the bank, and put 'dealer plates' on newly sold cars to conceal their sale. The scheme allegedly ran from February to October 1991.
O'Hara faces up to 30 years in prison and a $1 million fine on each count against him. His arrest capped a nine-month investigation by the FBI.
