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The former owner of a luxury used car dealership in Ramsey was sentenced to two years in federal prison for stealing more than $1.7 million from a finance company by submitting loans for vehicles he never delivered to buyers, or sold without the title, leaving customers on the hook for leases on vehicles they did not own or could not drive, according to the U.S. Attorney’s Office.
Afzal Khan, also known as Bobby Khan, pleaded guilty to wire fraud two years ago, admitting he cheated multiple customers and financial institutions between 2013 and 2014 using spurious credit lines in at least 21 falsified transactions through his business, Emporio Motor Group.
In one swindle, Khan found a buyer for a 2013 Rolls Royce, showing the customer photographs of the car and promising to deliver it after the necessary financial work was approved, according to a complaint filed in federal court.
Although Khan submitted a $150,000 loan on behalf of the buyer, the victim never received the car. Khan offered multiple excuses and promised to deliver the car soon but never did, the document states.
Meanwhile, Khan temporarily satisfied the lender by submitting sham payments using checks he either cancelled before they could be cashed or that he knew would bounce due to insufficient funds.
After the lender and multiple victims filed complaints against the dealership, investigators interviewed the true owner of the Rolls Royce, who said he never sold the car to Emporio, and that it remained in his possession.
In addition to roping buyers into leases for cars he didn’t have, Khan admitted he accepted cars on consignment, without paying the original owner after they were sold.
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Khan accepted an Audi from an unnamed seller in May 2014, agreeing to furnish them with $135,000 and keep the remaining profits from its sale, the complaint states.
Four months later, when the seller asked Khan to return the vehicle, they were told the car was in the shop and would be returned after the repairs were complete.
However, Khan had already financed the Audi to a separate victim, who never received the car’s title, but remained $120,000 in debt for a vehicle they could not legally drive.
More than 75 customers have filed complaints against Emporio, along with the lender, according to the FBI.
He was apprehended by the FBI in the United Arab Emirates and brought back to the U.S. in February 2020, more than three years after a warrant was issued for his arrest.
Once his prison term is complete, Khan will be subject to supervised release and was ordered to forfeit $1.1 million. He will also be required to make restitution to his victims in an amount yet to be determined, the Justice Department said.
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