Man pleads guilty in $1M bank fraud scheme

Man pleads guilty in $1M bank fraud scheme

CHARLOTTE, N.C. — Stanly Barron pleaded guilty Wednesday in federal court to conspiracy, wire fraud and bank fraud after stealing about $1 million in an operation that included false police reports, credit ratings and car dealerships.

A federal indictment said Barron would recruit people, many with poor credit, and help repair the bad credit reports.

Content Continues Below

He would sometimes file false police reports and claim that those people were victims of identity theft.

Barron would create fake car dealerships, sell his recruits fake vehicles and take out pricey loans in their names to get cash.

Barron and his recruits split the cash, making up to $1 million over the past few years.

Bank fraud is a billion-dollar industry that affects you because banks pass on the cost to you, experts said.

"For every dollar we pay in insurance premiums, somewhere between 15 and 20 cents of that dollar is going to pay for insurance fraud," North Carolina Insurance Commissioner Mike Causey said.

Barron could face a $1 million fine and spend 30 years in federal prison.

Read more top trending stories on wsoctv.com: