UPPER ALLEN TOWNSHIP, Pa.–A Delaware man is facing charges after police said defrauded Bobby Rahal Auto Group in Upper Allen Township out of more than $116,000.
Hugh R. Jones, 62, formerly of Mechanicsburg, is charged with theft by deception, theft by unlawful taking and theft by failure to required disposition of funds received.
Upper Allen Township police began investigating Jones in March 2015. The dealership tipped police off to Jones, alleging he was conducting illegal activities outside the scope of his employment as an auction representative for the company.
According to police, Jones conducted specific transactions without the approval of the dealership, causing substantial financial losses to his employer.
Jones arranged to sell cars “off the block” to multiple dealers, according the criminal complaint. “Off the block” refers to selling cars directly to an individual or business instead of allowing them to go through the customary auction process and obtaining the highest bid possible for that particular car.
Records showed that from Jan. 2010 through Feb. 2015, the bulk of these off-block sales by Jones were to six specific dealers for a total of 385 cars. The transfer of these cars to other dealers without going through the customary auction process resulted in a loss of $116,246.95 to the Bobby Rahal Auto Group, according to the criminal complaint.
Jones is also accused of diverting vehicles owned by his employer to another dealership in which he had financial interest and hid those transactions, investigators said.
Court documents reveal Jones had financial interest in the businessmen Gaines Auto Sales located in York Springs. Between Jan. 2010 and Feb. 2015, there were 13 sales of cars from Bobby Rahal Auto Group to Gaines Auto Sales. However, when investigators examined PADOT records–it showed that Jones sold 89 cars off-block to other dealers. These same cars were then transferred directly to Gaines Auto Sales.
Authorities believe these transactions were done to hide from the Bobby Rahal Auto Group that a large number of cars were not only being sold off-block at a loss, but were then diverted to Gaines Auto Sales for financial benefit of Jones, according to the criminal complaint.
Jones was terminated in Feb. 2015 after the dealership found out what he was doing, court documents state.
Jones, who now resides in Bethany Beach, was arraigned on April 1 on $50,000 unsecured bail.
A preliminary hearing is scheduled for May 3.
