General Manager Indicted For Stealing $3 Million From Dealership, Buying House

A former general manager is being accused of misusing dealership funds in order to live a life of luxury. He allegedly used almost $3 million of dealership money for his own personal use.

Richard T. Pepe, the former general manager at Chevy 73, a Chevy store in Berlin, New Jersey has been indicted by a federal grand jury for fraud. Pepe allegedly used his position with its access to dealership funds, to steal money from the store. According to a report from the Courier-Post, sometime between 2004 and October of 2008, Pepe spent at least $2.9 million dollars in dealership money on himself. Pepe allegedly worked with dealership lender Buffalo Bank to ensure a constant flow of funds, based on false statements. The Courier-Post noted that Pepe told the bank that his store earned $37,000 in 2008, when in reality it lost at least $310,000. Pepe alledgly took money borrowed for vehicle purchases and used it for his own personal use.

Pepe reportedly spent at least $300,000 at fancy stores on the east coast, in Florida and even Rome. Reports from the Courier post also indicate Pepe spent over $3,000 on wine and $25,000 on art. The allegation didn’t end there. Pepe reportedly used dealership funds to purchase a house in Florida. Pepe has been charged with conspiracy to commit bank fraud. The state of New Jersey is seeking the forfeiture of $2.9 million dollars that Pepe reportedly sole from Chevy 73.

Is it likely that a GM could successfully steal and hide millions of dollars in dealership funds without any help?