MEMPHIS, TENN.
For nearly three years, luxury automobile salesman Michael Brown offered upscale cars through his business, Valkry Corporation. However, after he was paid, Brown used the money for his personal use and never fulfilled vehicle orders, officials said Wednesday.
A federal judge sentenced Brown to six years and eight months in prison for defrauding customers of more than $2 million, officials said.
According to the indictment, from October 2010 to September 2013, Brown used the funds for personal benefit and failed to fulfill vehicle orders, according to authorities.
Brown used the funds to purchase additional vehicles, which he advertised to new customers. As a result of his scheme.
Brown pled guilty to two counts of wire fraud and one count of mail fraud in February. Following his plea, Brown continued his scheme.
One of the people he managed to defraud was legendary basketball player Julius “Dr. J” Erving. In February, the former NBA star wired Brown $251,934 to purchase a 2015 Rolls Royce Wraith. Nevertheless, Brown failed to fulfill Erving’s order or provide him with a refund.
Here are the facts and circumstances surrounding this case:
- One victim of Brown’s scheme is M Super Car, an international luxury automobile dealership based in Macau.
- In October 2010, M Super Car placed an order with Brown for the purchase of multiple vehicles for $1,268,000, according to the indictment.
- The dealership made multiple wire transfers from its bank accounts to Valkry Corporation’s First Tennessee accounts to purchase 16 Mercedes-Benz vehicles and a customized Porsche.
- However, Brown failed to fulfill the company’s order or refund their money for the cars he was unable to deliver.
- England-based company KIS Cars LTD. is another victim of Brown’s scheme.
- In November 2012, KIS Cars placed an order with Valkry Corporation for four Mercedes-Benz sedans and four Porsche Cayennes.
- The company paid Valkry Corporation for the orders via two wire transfers, one in the amount of $64,886 and another for $522,404.
- However, Brown failed to fulfill the orders and only provided a partial refund of $20,000 to KIS Cars.
- In August 2013, Leonard Wright negotiated the purchase of a 2014 BMW 650i from Brown for $102,721.57.
- Wright financed the purchase through Orion Federal Credit Union. Although Brown received a check satisfying his asking price for the BMW, he failed to deliver the car to Wright.
The case was investigated by the FBI.
