Landisville couple facing charges after mismanaging over $700,000 in borrowed business funds
LANCASTER COUNTY, Pa.– A Landisville couple is facing charges after they mismanaged over $700,000 in business funds that were owed to a lending company.
Richard Bryan, 62, and Deneen Winfield, 54, are facing fraudulent and deceptive business practices, fraud in insolvency, and theft by deception, among other related charges. The duo is also facing multiple Board of Vehicles Act violations.
On January 15, an investigation was opened into the auto sales and financial activities of Genesis Motor, LLC, located in the 1300 block of Manheim Pike in Lancaster City.
According to the police release, Dealer Resources, a dealership lending company, reported to the Pennyslvania State Police Vehicle Fraud Investigations Unit that they provided Genesis Motor, LLC with a line of credit to purchase vehicle at wholesale vehicle auctions.
The vehicles were then to be sold to customers from the sales lot of Genesis Motor, LLC.
However, over the course of the next year, Genesis Motor, LLC failed to repay the line of credit despite selling vehicles to customers or other dealerships.
It was found that Genesis Motor, LLC was keeping the funds from the sales of the vehicles instead of paying off the loan.
The Vehicle Fraud Investigations executed a search warrant on the bank of Genesis Motor, LLC, and found that the company had mismanaged $705,719.67.
The owner, Richard Bryan, and his girlfriend, Deneen Winfield, were found to be using the dealership’s bank account as both a personal and business account.
The couple spent money on dining out, grocery shopping, paying residential bills, shopping, jewelry stores, and other recreational spending.
By mismanaging the funds, it was found that the dealership failed to pay Dealer Resources $93,000 in borrowed funds.
The investigation also uncovered that the dealership was charging customers inappropriate expenses that included duplicate notary and motor vehicle fees.
As Dealer Resources began to pull funding after their own investigation, Bryan and Winfield liquidated assets that should have been reserved for Dealer Resources and PennDOT, according to police.
It was also found that the duo failed to submit the title and registration applications from customer vehicle purchases, resulting in customers not receiving the titles and registrations in a timely manner.
Now, the duo is facing charges.
After turning themselves into the court, both Bryan and Winfield are free on $20,000 unsecured bail.