A federal jury has found Mark Janbakhsh, 49, of Brentwood, Tennessee, guilty on multiple federal fraud charges related to his operation of the Auto Masters car dealership. The conviction was announced by Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire.
Janbakhsh was convicted of conspiracy to commit bank fraud, bank fraud, making false statements to a bank, bankruptcy fraud, and making a false statement under oath. He served as chief executive officer and majority owner of Auto Masters.
“Our office will vigorously pursue dedicated fraudsters like the defendant who lie and cheat for their own gain, and we’re not afraid to make our case to a jury to hold them accountable for their crimes,” said Acting United States Attorney Robert E. McGuire. “I commend the prosecutors and the federal agents who spent years uncovering this scheme, bringing it to light, and achieving a just result for our community.”
Evidence presented at trial showed that between 2013 and 2017, Auto Masters maintained lines of credit with Capital One and First Tennessee Bank (now First Horizon Bank). Prosecutors said Janbakhsh conspired with his brother Ron Janbakhsh and others in submitting false documentation to Capital One in order to inflate collateral values. This allowed him access to funds he was otherwise not entitled to receive.
The fraudulent activity resulted in Auto Masters obtaining approximately $26.4 million from these financial institutions.
When auditors began reviewing discrepancies in company submissions, evidence indicated that Janbakhsh directed employees to delete data and emails that would have revealed fraudulent conduct. After declaring bankruptcy in 2017, Janbakhsh allegedly lied about the scheme while under oath during proceedings.
Jurors also heard testimony that after learning federal agents wanted to speak with co-conspirators involved in the case, Janbakhsh offered one individual over $300,000 if they would leave the area in an attempt to obstruct the investigation.
Janbakhsh is scheduled for sentencing later this year before Judge Waverly D. Crenshaw Jr., where he faces up to 30 years in prison and a maximum fine of $1 million. The court may also consider ordering forfeiture of his property at sentencing.
The Federal Bureau of Investigation’s Nashville Field Office led the investigation into this case. Assistant U.S. Attorneys Kathryn R. Booth and J. Christopher Suedekum prosecuted on behalf of the government.
