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A sophisticated fraudulent operation, based on the simulated buying and selling of luxury cars, managed to scam financial institutions out of more than one million dollars.
The network, based in Hialeah, was finally dismantled by detectives from Miami-Dade County.
A sophisticated fraud: loans for cars that never existed
Three men were arrested by detectives from the Organized Crime Bureau of the Miami-Dade Sheriff's Department as part of an operation that dismantled a complex financial fraud network known as Phantom Auto Loans, according to local news sources.
The scheme involved obtaining bank loans by presenting false documentation for the purchase of vehicles that either did not exist, had been exported, or had altered identification numbers.
"These individuals managed to get loans approved by banks, but the cars either did not exist or had been exported, leaving financial institutions with loans that had no real backing," the Sheriff’s Office report states.
The detainees -whose nationalities have not been disclosed- were identified as Ray Rodríguez, Alexis Fonseca Espinosa, and Hugues Edouard.
The three are accused of multiple crimes, including organized fraud, document forgery, and grand theft; and they were transferred to the Turner Guilford Knight (TGK) detention center in Miami-Dade.
According to the police report, the network managed to defraud several banking entities, including Space Coast Credit Union, by more than one million dollars.
The arrest in flagrante delicto
The operation culminated in the arrest of the suspects at the Space Coast Credit Union branch located at 1120 W 49th Street, Hialeah, as they were attempting to secure another fraudulent loan.
In that attempt, Alexis Fonseca Espinosa, accompanied by Hugues Edouard, presented himself as a potential buyer interested in acquiring a Mercedes Benz vehicle.
The alleged seller was Ray Rodríguez.
But as the investigation revealed, the vehicle in question has been in the Dominican Republic since 2023, exposing the fraud behind the operation.
In addition to the phantom car, the defendants allegedly submitted false employment and income documents, a pattern that investigators identified as part of the network's modus operandi.
The central role of Ray Rodríguez and his front company
A key player in the scheme was Ray Rodríguez, owner of a supposed car trading company called EDF Auto Sales / Import and Export Auto Sales, based in Hialeah (3625 East 4th Avenue).
This company operated as a front to simulate fraudulent transactions.
The authorities believe that Rodríguez would be responsible for at least ten fraudulent loans totaling over $647,000, just at different branches of Space Coast Credit Union.
In many cases, the scheme operated as follows: Rodríguez acted as the supposed seller, while Fonseca or Edouard posed as buyers, presenting forged documents—including vehicle titles, fabricated sales contracts, and proof of employment—to obtain loan approval.
The investigation also determined that none of the vehicles for which credit was requested were registered in the name of the alleged buyers.
In some cases, the vehicles didn't even exist; in others, the identifiers (VIN) had been altered to give the appearance of legality.
Family ties and possible case expansion
Investigators in Miami-Dade County also discovered that relatives of the accused may be involved in similar operations.
Some of these loans, with amounts of up to $81,000, were obtained under the names of third parties using non-existent cars or with manipulated documentation.
Authorities do not rule out further arrests in the coming days, as the case remains open.
The sophistication of the scheme and its systematic nature suggest the possible existence of a broader network of collaborators.
Financial impact and warning to institutions
The fraud known as Phantom Auto Loans not only raised alarms among authorities but also triggered concerns in financial institutions across South Florida, which are now reviewing similar operations in search of patterns that match this scheme.
The losses currently amount to over one million dollars, although this figure could rise as the investigation progresses.
Authorities are advising financial institutions to exercise caution when approving loans based on documents that cannot be easily verified.
They also urge that this case serves as a warning to reinforce the need for stricter controls in the granting of credit for the buying and selling of vehicles.
Frequently Asked Questions about the Million-Dollar Auto Loan Fraud in Hialeah
How did the auto loan fraud scheme operate in Hialeah?
The network operated by simulating the buying and selling of luxury cars that did not exist, through the presentation of false documentation to obtain bank loans. These vehicles were nonexistent, exported, or had altered identification numbers. The operation involved several individuals acting as fake sellers and buyers.
Who were the main individuals involved in the fraud in Hialeah?
The main individuals involved were Ray Rodríguez, Alexis Fonseca Espinosa, and Hugues Edouard, who were arrested and are facing charges of organized fraud, document forgery, and grand theft. Ray Rodríguez was the owner of a shell company used to simulate the fraudulent transactions.
What was the financial impact of the fraud known as "Phantom Auto Loans"?
The "Phantom Auto Loans" scam caused losses of over a million dollars to several financial institutions, including Space Coast Credit Union. Financial institutions ended up with loans that had no real backing due to the non-existence of the vehicles for which the credits were granted.
What measures are being taken to prevent similar fraud in the future?
The authorities are reviewing similar operations and have requested that financial entities be more cautious when approving loans based on difficult-to-verify documents. This case is expected to strengthen the need for stricter controls in the granting of credits for vehicle purchases.
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