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Oof: Former NIADA President Indicted for False Financial Claims

Toby Graham

Oof: Former NIADA President Indicted for False Financial Claims

Oof—that’s the operative word for news of financial crime charges. 

For auto dealership professionals, particularly members of the F&I office, some charges elicit stronger oofs than others. A federal fraud indictment, for instance, is what we in the business call a “big oof.”

Well, this story may be the ultimate oof. 

Andy Gabler of Lakeside Auto Sales and Lakeside Chevrolet—and the former president of the National Independent Automobile Dealers Association—has been indicted on 17 counts of conspiracy, bank fraud, and wire fraud. 

Court records state that over 4 years, Gabler and a colleague fabricated sales numbers, falsified customer down payments, and exaggerated customer income when filing those customers’ auto loan applications. Allegedly, the pair also sold extended warranties while failing to send paperwork or remit payment to the warranty company, falsely reported sales back to General Motors, and withheld sales information from the financing banks to avoid required payments.

Automotive News reports:

“The accusations follow FBI search warrant executions in late January at Gabler’s dealerships and a nearby home believed to be his residence. Gabler on Jan. 31 abruptly resigned his post as president of [NIADA], which represents more than 20,000 U.S. used-vehicle dealers.Gabler and Lakeside also are facing lawsuits by S&T Bank of Indiana, Pa., which alleged the dealership group sold vehicles without repaying the bank for floorplan loans, known as selling out of trust, according to the newspaper website GoErie.com. The bank sued Lakeside in December and January for more than $5.2 million, according to the Erie County Court.”

Gabler faces up to 510 years in prison and a $17 million fine.

Like I said, oof.

This news should serve as a reminder that financial impropriety isn’t worth the cost. While these are only allegations—Gabler and his purported co-conspirator are innocent until proven guilty—federal charges are never a good look. A business’s financial wellbeing and success rely on transparency and accuracy. If a dealership can’t produce detailed, consistent financial reports, there’s probably some bad news ahead.

Keep your organization protected and compliant with KPA’s auto industry-tailored solutions.

Toby Graham

Toby manages the marketing communications team here at KPA. She's on a quest to help people tell clear, fun stories that their audience can relate to. She's a HUGE sugar junkie...and usually starts wandering the halls looking for cookies around 3pm daily.

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