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Bordentown car dealer gets 33 months for 'massive' check fraud scheme
Published: Monday, September 13, 2010, 8:37 PM Updated: Monday, September 13, 2010, 8:39 PM
Lisa Coryell
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TRENTON — Nearly two dozen friends and family turned out Monday to support a once-wealthy Bordentown car dealer as he was sentenced to 33 months in federal prison for running a multimillion-dollar bank fraud, wire fraud, and money laundering scheme that bilked a bank and two of his well-heeled friends.
Denis Kelliher, 40, of Toms River, who owned Cartec Motors, admitted he ran a check-kiting scheme that caused a $7.6 million in bank overdraft fees and admitted he fraudulently obtained more than $600,000 in loans from two friends to pay down those fees.
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“As the government says, he left a wide swath of financial disruption for victims who crossed his path, said Chief Judge Garrett E. Brown Jr., who sentenced Kelliher.
“This is a lengthy, massive scheme of bank fraud, wire fraud and money laundering” Brown said.
As vehicle sales floundered in the stalled economy of 2008, Kelliher routinely engaged in a fraud known as “check kiting” by allegedly writing a check on one account and then depositing that amount into another, despite knowing the account upon which the check was drawn held insufficient funds. To help cover rising bank costs, he fraudulently obtained loans from two individuals by telling them he needed the money to replenish his inventory and falsified documents to support that claim.
As several female family members cried softly in the court room, Kelliher expressed remorse for his deeds, which his attorney said were the result of severe financial struggles and an untreated mental illness.
“I never wanted anyone to be harmed by my actions,” Kelliher said. “I completely realize the mistakes I’ve made and take full responsibility for them. I want nothing more than to repay my debt and correct the wrongs I have committed.”
Kelliher, who also owned a home in Monroe and property in Florida, is now in bankruptcy his attorney Andrea Bergman, assistant federal public defender, said Monday.
She told the judge that Kelliher is a hard worker whose stubbornness and pride kept him from realizing his business was in irreparable financial trouble.
“Denis Kelliher was motivated in a very large part by a desire to save the business he worked so long and hard for,” Bergman said. “He was feeling enormous pressure to keep the business afloat not just for him but for his employees and it just got out of hand.”
“It was an inability to appreciate that he needed to let the business go,” she added.
Bergman asked Brown to sentence Kelliher, who has no prior criminal history, to supervised release or house arrest.
Assistant U.S. Attorneys Eric M. Schweiker argued that the case demanded a prison sentence.
“Mr. Kelliher kited millions and millions of dollars worth of checks and then essentially lied to obtain money to pay the overdraft on the kited checks.”
Schweiker said that while Kelliher didn’t actually pocket the money he fraudulently obtained, his business allowed him to maintain a cushy lifestyle even as he resorted to crime to keep it afloat.
Kelliher, who travels in a circle of wealthy people who race boats and drive expensive cars, must serve as a deterrent for criminal activity, Schweiker said.
“For him to walk out (of court) with a probationary sentence would simply send the wrong message,” Schweiker said.
In addition to the prison term, Brown sentenced Kelliher to serve five years
of supervised release and ordered him to pay $6,945,096 in restitution to KeyBank and $250,000 and $410,000, respectively to the two individuals who loaned him money under false pretenses.
Inappropriate post? Alert us.Related topics: bordentown-city
Published: Monday, September 13, 2010, 8:37 PM Updated: Monday, September 13, 2010, 8:39 PM
Lisa Coryell
Follow Share this story
Story tools
TRENTON — Nearly two dozen friends and family turned out Monday to support a once-wealthy Bordentown car dealer as he was sentenced to 33 months in federal prison for running a multimillion-dollar bank fraud, wire fraud, and money laundering scheme that bilked a bank and two of his well-heeled friends.
Denis Kelliher, 40, of Toms River, who owned Cartec Motors, admitted he ran a check-kiting scheme that caused a $7.6 million in bank overdraft fees and admitted he fraudulently obtained more than $600,000 in loans from two friends to pay down those fees.
0
0
0
Share
“As the government says, he left a wide swath of financial disruption for victims who crossed his path, said Chief Judge Garrett E. Brown Jr., who sentenced Kelliher.
“This is a lengthy, massive scheme of bank fraud, wire fraud and money laundering” Brown said.
As vehicle sales floundered in the stalled economy of 2008, Kelliher routinely engaged in a fraud known as “check kiting” by allegedly writing a check on one account and then depositing that amount into another, despite knowing the account upon which the check was drawn held insufficient funds. To help cover rising bank costs, he fraudulently obtained loans from two individuals by telling them he needed the money to replenish his inventory and falsified documents to support that claim.
As several female family members cried softly in the court room, Kelliher expressed remorse for his deeds, which his attorney said were the result of severe financial struggles and an untreated mental illness.
“I never wanted anyone to be harmed by my actions,” Kelliher said. “I completely realize the mistakes I’ve made and take full responsibility for them. I want nothing more than to repay my debt and correct the wrongs I have committed.”
Kelliher, who also owned a home in Monroe and property in Florida, is now in bankruptcy his attorney Andrea Bergman, assistant federal public defender, said Monday.
She told the judge that Kelliher is a hard worker whose stubbornness and pride kept him from realizing his business was in irreparable financial trouble.
“Denis Kelliher was motivated in a very large part by a desire to save the business he worked so long and hard for,” Bergman said. “He was feeling enormous pressure to keep the business afloat not just for him but for his employees and it just got out of hand.”
“It was an inability to appreciate that he needed to let the business go,” she added.
Bergman asked Brown to sentence Kelliher, who has no prior criminal history, to supervised release or house arrest.
Assistant U.S. Attorneys Eric M. Schweiker argued that the case demanded a prison sentence.
“Mr. Kelliher kited millions and millions of dollars worth of checks and then essentially lied to obtain money to pay the overdraft on the kited checks.”
Schweiker said that while Kelliher didn’t actually pocket the money he fraudulently obtained, his business allowed him to maintain a cushy lifestyle even as he resorted to crime to keep it afloat.
Kelliher, who travels in a circle of wealthy people who race boats and drive expensive cars, must serve as a deterrent for criminal activity, Schweiker said.
“For him to walk out (of court) with a probationary sentence would simply send the wrong message,” Schweiker said.
In addition to the prison term, Brown sentenced Kelliher to serve five years
of supervised release and ordered him to pay $6,945,096 in restitution to KeyBank and $250,000 and $410,000, respectively to the two individuals who loaned him money under false pretenses.
Inappropriate post? Alert us.Related topics: bordentown-city
