A Middletown used car dealer has been sentenced to more than two years in prison for operating an auto loan fraud scheme while on federally supervised release from a previous conviction, prosecutors say.
U.S. District Judge Robert N. Chatigny on Thursday sentenced George Hajati, 41, of Cromwell, to 27 months in prison, five years of supervised release, and 120 hours of community service, for defrauding lenders out of roughly $655,000 during his stint as a used car dealer in Middletown, according to the Connecticut U.S. Attorney’s Office.
In December, Hajati, who was arrested on a federal criminal complaint on July 2, 2019, waived his right to be indicted and pleaded guilty to one count of wire fraud stemming from the scheme.
Hajati was released on a $560,000 bond, and is required to report to prison on September 25. The first six months of his supervised release will be served in home confinement.
According to court documents and statements made in court, Hajati owned and ran the dealership at 1075 Newfield St. in Middletown known as Car Nation LLC, Car Nation CT LLC and Middletown Motorcars.
In filing automobile loan applications for various borrowers between April 2016 and July 2019, prosecutors say Hajati and his staff submitted documents and statements to lenders that misrepresented the borrower’s employment, salary and sources of income, and other information. The documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration.
Many borrowers were not aware of or did not consent to Hajati using their personal identifying information to obtain automobile loans in these ways, prosecutors say.
In total, Hajati defrauded lenders of $654,952. The court is requiring Hajati to pay full restitution.
Previously, Hajati was convicted of federal conspiracy and fraud offenses related to a mortgage fraud scheme in Greater Hartford that defrauded lenders of more than $1 million.
In Aug. 2015, Hajati was sentenced in Hartford federal court to a year and one day in prison, followed by three years of supervised release. He was released from federal prison in Aug. 2016, and was on supervised release at the time of the auto loan fraud.
Hajati’s supervised release hearing is scheduled for June 29. He faces a maximum additional sentence of two years in prison.
The case is being investigated by the Federal Bureau of Investigation (FBI) and the Social Security Administration Office of Inspector General.
