Jury Indicts Two Car Dealers in False Statements on Loan Papers

SAN DIEGO —  Two car dealers Friday were indicted by a federal grand jury for allegedly making false statements on applications for loans they received from Sun Savings & Loan Assn.

Jeffrey Lee Connole, owner of bankrupt San Diego Sports & Imports, was charged with three counts of making false statements for a $300,000 line of credit he received from Sun in September, 1983.

Fred Robin, owner of bankrupt Plaza Chevrolet in Compton, was indicted on one count of giving false information for a $2.9-million loan he received from Sun in June, 1983.

Connole allegedly gave Sun a copy of his 1981 federal income tax return that showed his income as $102,500. The indictment charges that Connole’s actual income that year was $43,750.

Robin reportedly submitted five Internal Revenue Service forms showing 1982 fees and commissions of $78,000 and wages of $216,000. In fact, according to federal prosecutors, his income that year was only $2,083.

It is uncertain whether Sun later wrote off the loans.

Sources familiar with the case said Friday that the state Department of Motor Vehicles was also investigating both Connole and Robin.

Each count carries a maximum penalty of two years in prison and a fine of $5,000. Connole and Robin are not in custody, but each posted a $25,000 bond, according to the U.S. attorney’s office.

Federal prosecutors have been investigating Sun and its prior management for at least the past year. The link between Friday’s indictment and the ongoing federal probe is unclear, however.

Eve Bermingham, assistant U.S. attorney who is leading the investigation, would not comment on the status of the Sun inquiry.