A man has pleaded guilty to participating in a scheme in which he falsely told investors that he had an agreement to buy a large number of vehicles at auctions and then sell them to a national car rental company, according to Tulsa World.
Prosecutors say that from 2001 until last year, William Todd Bingham of Oologah, Oklahoma represented to investors that the agreement allowed him to sell vehicles to a national car rental company for a profit of approximately $200 to $300 per vehicle. The identity of the national car rental company is not mentioned in the report.
Bingham, 42, pleaded guilty to wire fraud and money laundering in U.S. District Court in Hartford, Conn. and will be sentenced in October. Prosecutors say he defrauded investors out of millions of dollars.
As part of the alleged scheme, Bingham told investors that their money would be secured by a rolling inventory of vehicles purchased with their funds. Bingham promised to pay investors 50 percent of the profits and to return to investors the principal amount of their investment at the end of the investment term.
Bingham allegedly used a large portion of invested funds to pay for personal expenses, including car payments, his mortgage and credit card bills.
Sentencing is scheduled for Oct. 17, according to Tulsa World.