The U.S. Department of Justice (DOJ) on Thursday announced that Mark Janbakhsh, the former owner of an auto dealership in Nashville, was convicted for his role in a financial fraud conspiracy that saw his former business obtain around $26.4 million in lines of credit which it was “not entitled to receive.”
Acting U.S. Attorney General Robert E. McGuire announced on Thursday that Janbakhsh was convicted of conspiracy to commit bank fraud, bank fraud, making false statements to a bank, bankruptcy fraud, and making a false statement under oath.
“Our office will vigorously pursue dedicated fraudsters like the defendant who lie and cheat for their own gain, and we’re not afraid to make our case to a jury to hold them accountable for their crimes,” said McGuire in a statement. “I commend the prosecutors and the federal agents who spent years uncovering this scheme, bringing it to light, and achieving a just result for our community.”
The case against Janbakhsh began in 2022, when The Tennessean reported at the time that the former Auto Masters owner maintained his innocence. He was charged alongside the company’s former chief financial officer, Steven L. Piper, who pleaded guilty in July, shortly before Janbakhsh went to trial.
Janbakhsh (pictured above) was also the proprietor of Plaza Mariachi and the founder of the Hispanic Family Foundation.
The foundation’s website continues to list Janbakhsh as its president, and reveals in a biography that the convicted fraudster, “was born in Tehran, Iran, and came to the United States before the age of one.”
He launched the nonprofit in 2013, and began developing Plaza Mariachi in 2017, according to the website.
This is the same period in which jurors determined that Janbakhsh conspired with his brother and others in former his company to submit false information to Capital One in a bid to “artificially inflate the value of the company’s collateral,” which let Janbakhsh access “lines of credit he was otherwise not entitled to take.”
According to the DOJ, the case arose after bank auditors first discovered evidence suggesting, “Janbakhsh directed company employees to delete data, emails, and other company information that would have shown his fraudulent dealings.”
They further revealed that Janbakhsh lied during his bankruptcy proceedings, and in a later bid to stave off prosecutors, “offered one co-conspirator over $300,000 if the person would leave the jurisdiction to thwart the investigation.”
Janbakhsh faces up to 30 years in prison and a fine of up to $1 million. The DOJ noted that U.S. District Court Judge Waverly Crenshaw will consider ordering forfeiture of Janbakhsh’s property at sentencing.
He reached a $10 million civil settlement with Capital One in 2022.
Auto Masters declared bankruptcy in 2017. The company’s name was later sold, and the current owners are unrelated to Janbakhsh or his associates.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Mark Janbakhsh” by Hispanic Family Foundation.
