Pair convicted in New Minas ‘car-swapping’ fraud face sentencing hearing

Car dealer Darren Bateman has been praised in reference letters for his generosity, often helping people with money and vehicles, paying for them to see shows, or quickly stepping up to buy fundraising auction tickets. However, this seemingly positive trait has raised concerns in light of his financial situation.

Bateman, who is 60 years old, owes more than $1 million in tax fines and is involved in a large-scale fraud case centered around a car dealership in New Minas, N.S. Along with co-accused Orlando Smith, 65, Bateman faced a sentencing hearing for their roles in a “car-swapping” scheme that led to charges of fraud and possession of proceeds of crime.

The scheme involved Summit Hyundai, where Bateman worked under contract and where Smith was the general manager and a shareholder. Summit had an excess inventory of used cars due to overpaying for trade-ins to encourage customers to buy new vehicles. To circumvent this issue, Summit began selling used vehicles to Bateman’s company, which would then sell different vehicles back to Summit, allowing the dealership to reset its loans.

During the trial, it was revealed that the scheme was financially imbalanced, with Bateman’s company benefiting significantly at the expense of Summit. The judge found that Summit paid for vehicles that were not delivered and that false documents were created to misrepresent ownership of rented vehicles.

In defense, Bateman’s lawyer argued that the responsibility for the fraud should not solely rest on his client, as the dealership owner, Ken Barrett, was complicit or aware of some aspects of the scheme. The defense sought a lenient sentence of two years of house arrest followed by three years of probation for Bateman.

Smith, on the other hand, expressed regret for not testifying in his defense and claimed he was unaware of the fraudulent nature of the scheme. He emphasized his successful track record as a car salesman and questioned why Barrett was not charged in the case.

Despite the plea for leniency, the prosecution is seeking substantial fines and possible incarceration for both defendants. The judge is expected to issue a decision in September.

In conclusion, the case highlights the complexities of financial fraud and the consequences of unethical business practices. It serves as a cautionary tale about the repercussions of greed and deceit in the automotive industry.