A car dealer in Delray Beach, Florida has been charged with federal wire fraud for allegedly stealing nearly $8 million from investors in December 2020. According to federal investigators, Stephen Neary, the owner of Palm Beach Auto Group, “misappropriated investor funds for his own personal use and benefit, without any notice to, or authorization from, his investors,” WPBF reports.
Neary allegedly “recruited and befriended investors” to fund a scheme that involved buying Mercedes-Benz Sprinter vans that he would then fix up and sell to Amazon thanks to a contact he had at the company. Supposedly, they would be able to turn a profit between seven and 10 percent. However, according to investigators, the vans never existed in the first place, and the documents and VINs that Neary provided were forged.
Neary also faces two separate lawsuits from investors who claim he used the money they thought was being used to buy Sprinters to instead pay off the mortgages on multiple homes, as well as buy a plane and several luxury cars for himself. Neary also reportedly bought a condo for his mother who likely didn’t know that he was using stolen money to pay for it.
Neary’s attorney, Andrew. P. Gold, told WPBF, “Charges were brought without the authorities ever sending a target letter or otherwise contacting Mr. Neary or his counsel to advise that he was under investigation or to hear his side of the story.” Gold also insisted that he believed the judge would take Neary’s side. They are also countersuing, claiming that he’s the actual victim in this situation since the investments were actually loans, and he was being charged as much as 40 percent in interest.
If Neary is convicted, wire fraud carries a sentence of up to 20 years in prison, as well as a fine of up to $250,000 for each instance of wire fraud.