MIDLAND, Texas (AP) -- A car dealer has pleaded guilty in a West Texas vehicle financing scam that led to a credit union losing $3.9 million dollars on more than 300 bogus loans.
Prosecutors say Raymond Holguin Jr. of Odessa pleaded guilty Monday to conspiracy to commit bank fraud.
Holguin, who operated a company named Motor City, faces up to 30 years in prison. A company sales manager and a former loan officer with My Community Federal Credit Union earlier pleaded guilty to the same charge. Both await sentencing.
Prosecutors say the trio devised a plan to approve loans for customers who did not meet the credit union's lending standards. Investigators say the credit union officer never verified any information in the loan documents before approving the applications and receiving a kickback from Holguin.