Car Loan Fraud Discovered

Two Bahrainis have been arrested in conjunction with an auto loan fraud case that the police have been pursuing. The auto loan fraud is the second one of its kind to be discovered just over the past five months.

Hundreds of thousands of dinars are involved in the auto loan fraud, with the two men working in conjunction to rip off the auto loan industry. One of the men owned a car dealership and the other was a pilot – and both were arrested yesterday.

Supposedly they paid six different people to apply for Commercial Registrations, and then forged the documents to make it look like those that were applying were successful business executives. Then they would take the paper work and apply for several car loans for each name at the banks.

They used the auto loans to buy cars, but then they exported them to other countries where they were sold and netted them somewhere around BD240,000. In April, a very similar case was discovered as well.

In the April case, four men were accused of paying poor people for their information and then using those identities to take out car loans, where they would purchase the cars and sell them outside the country. Police say that the cases do not seem to be related in any way, except for the similarity in auto loan fraud cases.

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