Richard T. Pepe of Vineland entered a guilty plea in federal court on charges he defrauded a bank out of $2.95 million which he used for himself and his family.
CAMDEN -- A Vineland man has admitted his role in a scheme to defraud a bank and to filing fraudulent tax returns, according to U.S. Attorney Paul J. Fishman.
A Vineland man has admitted to defrauding a bank. (File Photo) Richard T. Pepe, 69, pleaded guilty Thursday before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to one count of conspiracy to commit bank fraud and one count of fraud and false statements on his 2008 federal tax return, authorities said.
According to documents filed in the case and statements made in court, from 2004 through October 2008 Pepe knowingly conspired and agreed with others to a scheme to defraud M&T Bank.
The object of the conspiracy was for Pepe, the general manager of Chevrolet 73, a Berlin auto dealership, and others acting on his behalf, to fraudulently obtain money from M&T Bank, intended as floor plan financing for Chevrolet 73, by providing false information to the bank.
Tax preparer admits filing bogus returns
Pepe then converted that money -- $2.95 million -- to his own use to pay for personal expenses for himself and his family members.
Pepe also admitted he made false statements on his 2008 federal tax return by claiming his total income for the year was $36,628 when he knew it was more, authorities said.
The conspiracy charge to which Pepe pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000.
The fraud and false statement charge to which Pepe pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000.
As part of the plea agreement, Pepe will make full restitution.
Sentencing is scheduled for Oct. 14, 2016.
Bill Gallo Jr. may be reached at bgallo@njadvancemedia.com. Follow Bill Gallo Jr. on Twitter @bgallojr. Find NJ.com on Facebook.