Former Nashville auto dealer convicted of multimillion-dollar bank fraud

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Robert E. McGuire, U.S. Attorney | U.S. Attorney's Office for the Middle District of Tennessee

Former Nashville auto dealer convicted of multimillion-dollar bank fraud

A federal jury in Nashville has convicted Mark Janbakhsh, 49, of Brentwood, Tennessee, on multiple charges including conspiracy to commit bank fraud, bank fraud, making false statements to a bank, bankruptcy fraud, and making a false statement under oath. The announcement was made by Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire.

“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 Acting United States Attorney Robert E. McGuire. “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.”

Evidence presented at trial showed that Janbakhsh served as chief executive officer and majority owner of Auto Masters, a car dealership company. From 2013 to 2017, Auto Masters maintained lines of credit with Capital One and First Tennessee Bank (now First Horizon Bank). Prosecutors said Janbakhsh conspired with his brother Ron Janbakhsh and others at the company to submit falsified documents to Capital One in order to inflate the value of the company's collateral. This allowed them access to credit they were not otherwise entitled to receive.

During this period, Auto Masters fraudulently obtained about $26.4 million through these actions. When bank auditors began investigating discrepancies in financial submissions from Auto Masters, evidence indicated that Janbakhsh directed employees to delete data and emails that could reveal fraudulent activities. In 2017, after Auto Masters declared bankruptcy, Janbakhsh was found to have lied under oath about the fraudulent conduct during bankruptcy proceedings.

The trial also revealed that when Janbakhsh learned federal agents were seeking interviews with co-conspirators in connection with the investigation, he offered more than $300,000 to one individual if they would leave the jurisdiction in an attempt to obstruct justice.

Janbakhsh is scheduled for sentencing later this year. He faces up to 30 years in federal prison and a maximum fine of $1 million. Judge Waverly D. Crenshaw Jr. will preside over sentencing proceedings and may also consider ordering forfeiture of Janbakhsh’s property.

The Federal Bureau of Investigation’s Nashville Field Office conducted the investigation. Assistant U.S. Attorneys Kathryn R. Booth and J. Christopher Suedekum prosecuted the case.