Former Florence car dealer indicted on federal fraud charges
Florence, S.C. (WPDE) —
Rex Allen Matthews was indicted by a federal grand jury this week on charges in connection with fraud at his business Carolina Cars, LLC, in Florence, according to the indictment.
It says Matthews' car dealership was a buy here, pay here business that provided loans for high risk customers.
The indictment says Matthews obtained funding for these loans by promising investors 12 percent annual return on their investments and by promising that vehicle loans made with the investments would be secured by the vehicle's title.
The indictment says, "From in or about 2006, to in or about 2012, Rex Allen Matthews knowingly did devise and intend to devise a scheme and artifice to defraud financial institutions and investors by means of false and fraudulent pretenses, representation and promises."
The indictment goes on to say Matthews would cause false loan applications to be submitted to financial institutions to enable customers of Carolina Cars, LLC, to purchase vehicles knowing the vehicles would be pledged as collateral for the loans.
"Matthews would supply investors with duplicate titles or copies of vehicle titles to make it appear the investors loans to customers of Carolina Cars, LLC, were secured by collateral, according to the indictment.
Court documents say Matthews obtained directly or indirectly as the result of the offenses in the indictment $1,365,211.26.
Matthews is scheduled to appear in court May 17 for an arraignment hearing.