Auto Repair Franchise Owner Gets 10 Years for Fraud

A franchise owner of three All Tune & Lube shops found a new way for short-term profits during tough times—provide bogus auto repair services to customers. Last month a court sentenced owner Charles Perry Jr. of Suffolk, Virginia to ten years in prison after he plead guilty.

Besides charging customers for services never performed:

Perry routinely charged customers for repairs that were improperly done. His supposed specialties were transmission and engine replacement, but Perry used junkyard engines and parts that were worse than what the customers brought in, according to court records and testimony.

Those things weren't enough. He also pled guilty to identity-theft scams.

The FBI learned that Perry stole credit card and bank data from dozens of customers and racked up hundreds of thousands of dollars in fraudulent debt and cash advances. He also had not paid parts suppliers.

Perry, convicted in the past for dealing in narcotics and passing bad checks, apologized to his customers saying in court that his failing marriage, a crumbling business and heavy drinking caused his lapse in judgment. Perry will forfeit his Mercedes and home equity to repay $609,000 to customers and suppliers.

All Tune & Lube may want to check for a criminal record next time they sell a franchise.

Read full details at HamptonRoads.com