- A dealership employee’s daring scheme turns a trusted character into a $575,000 scandal.
- Proceeds from the sale of fraudulent lift kits were directed to personal PayPal accounts.
- The employee responsible for the fraud will be sentenced in federal court on December 12.
Parts managers at local dealerships rarely become the focus of federal fraud cases, but this one certainly breaks that pattern. What started as a small side job for Robert McLane, the former director of parts and service at Formula Nissan in Barre, Vermont, evolved into a $575,000 initiative that could land him a job. 20 years in prison. Is he suspected of committing a crime? Dealer funds were misused to stock lift kits and flip them privately for a profit, while Formula Nissan unknowingly paid for them.
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according to automotive newsMcLean, who was hired by Formula Nissan in 2019, is more than just a dealer employee handling inventory. He is responsible for managing the entire parts department, including overseeing orders, receipts and payments. However, between January 2021 and September 2022, McClain seemed to decide to rewrite his job description.
Read: Nissan cuts U.S. production 17% to survive
He used his position to order high-priced items directly from Nissan North America, primarily lift kits for Nissan vehicles. The kits, which cost between $2,300 and $2,900 each, are not logged into the dealer’s system. Instead, McLean treats them as individual stocks.
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Parts Heist, Facebook Market Edition
Formula Nissan then paid the invoice for those parts, the U.S. Attorney’s Office detailed. However, McLean had no intention of selling the lift kit through legal channels, so they did not order using the dealer’s management software. When the parts arrived, McClain listed them for sale on Facebook and received payment through his personal PayPal account.
Federal prosecutors claim McClain’s operation was anything but small. He sold more than 200 lift kits for various Nissan vehicles and shipped them to customers using Formula Nissan’s FedEx account. To smoothen the deal, he reportedly told customers that he would be able to sell the kits at a lower wholesale cost than dealers because they were purchased at dealer prices.
Arrested on the spot
While McClain may have thought he could clear his name of fraud, authorities eventually caught him. In June, he signed a plea in federal court admitting to the fraud. Sentencing was originally scheduled for October, but his hearing was postponed to December 12. McClain now faces up to 20 years in prison and could face fines equal to twice the dealer’s $575,000 loss.
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