New Jersey Car Dealership Pleads Guilty in Check Kiting Scheme

Denis Kelliher, the former owner and operator of Cartec Motors, LLC, a Bordentown, New Jersey car dealership, pleaded guilty today to charges that he conducted a $7.4 million check kiting scheme, obtained a $500,000 loan by means of fraud, and then used the fraudulently-obtained loan proceeds in an attempt to pay down the overdraft caused by his check kiting activities, U.S. Attorney Paul J. Fishman announced. Denis Kelliher, 40, of Toms River, New Jersey, pleaded guilty before Chief Judge Garrett E. Brown, Jr., to counts two, four, and eight of a superseding indictment returned against him on January 14, 2010. Count tTwo charged the defendant with bank fraud, relating to a check kiting scheme that caused a $7.4 million overdraft in a Cartec checking account at KeyBank, N.A. Count four charged the defendant with wire fraud, alleging that the defendant obtained a $500,000 loan from an individual by means of fraud. Count eight charged the defendant with money laundering, and alleged that the defendant used the proceeds of the fraudulently-obtained loan to attempt to pay down the overdraft in Cartec's checking account at KeyBank. Posted in: Check Fraud