nashville – A federal grand jury last week found Stephanie Louise Baker, 53, of Mount Juliet, Tennessee, Brian Baker, 52, of Mount Juliet, Tennessee, and Jerry Baker, 52, of Dowelltown, Tennessee. The indictment charging Mr. W. Hutchins, 48, was returned. Henry C. Leventis, United States Attorney for the Middle District of Tennessee, announced charges of participating in a wire fraud and money laundering scheme to defraud a used car auction business in Murfreesboro, Tennessee.
All three defendants turned themselves in to federal agents last Friday and appeared before a federal judge that same day.
The federal indictment charges Stephanie Baker, Brian Baker, who is married, and Hutchins with wire fraud and money laundering conspiracy. The indictment also charges all three defendants with substantive charges of money laundering.
According to the indictment, Stephanie Baker served as general manager of Dealers Auto Auction Group’s Murfreesboro auction site from February 2017 to November 2018. Brian Baker and Jerry Hutchins each owned and operated a used car dealership and conducted transactions at auction. Defendants defrauded Dealers Auto Auction Group LLC by creating false transactions that made it appear as if Defendant businesses were entitled to sell cars at auction and receive funds from Dealers Auto Auction Group LLC. Although the defendants devised the plan, in reality the vehicle was unsold at auction. Based on the bogus transactions, Stephanie Baker had Dealer Auto Auction Group issue checks to Brian Baker and Hutchins’ business. Thereafter, the defendants would create additional bogus transactions each month using the same vehicle to conceal the original fraudulent activity and avoid detection. Brian Baker and Hutchins then cashed in the proceeds of the fraudulent scheme for their own personal use and benefit.
As a result of this scheme, the defendants defrauded Dealers Auto Auction Group of more than $2 million.
If convicted, the defendants face up to 20 years in prison for conspiracy to commit wire fraud, conspiracy to commit money laundering, and concealment of money laundering, and up to 10 years in prison for money laundering. The indictment alleges that the government obtained all property from the proceeds of crime, including monetary judgments of at least $2,041,170 from Stephanie Baker, $1,357,310 from Brian Baker, and $683,830 from Jerry Hutchins. It also includes a forfeiture charge of seeking the confiscation of.
This case was investigated by the IRS Criminal Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorney Chris Swekum is prosecuting the case.
An indictment is just an accusation. Defendants are presumed innocent until proven guilty in a court of law.
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