(It is not clear but we assume the vans were all Fords and Dodges because even the bold McNamara would not risk using Chevrolet and GMC vans so as not to risk GMAC from cross-checking VINs with General Motors.) The vans were then “sold” to another sham McNamara company, an auto export firm called Harbor East Equities, which in turn “sold” them to the bogus Cyprus firm Cydonia Trading Ltd. McNamara’s Buick store would “buy” the vans from Kay Industries and proceeded to produce MSOs with fake VINs which they forwarded to GMAC to obtain the financing. Using an Indiana address gave McNamara’s fake company credibility, but using an Elkhart address would have been too risky as there would have been too many General Motors reps sniffing around. at the time, the majority of them being located 150 miles north of Indianapolis in Elkhart, Indiana, the center of the domestic RV industry. There were probably around 30 or so van conversion outfits in the U.S. Kay Industries was not a recreational vehicle factory but rather an empty office that McNamara had set up, furnished only with a phone that forwarded calls to his operations in Long Island. McNamara told GMAC he had a buyer for the all the units in Cyprus and they would distribute them throughout Southeast Asia. He informed GMAC that his store was going to buy the vans from an Indianapolis conversion company called Kay Industries.
It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.īorn in 1940, John McNamara took over his father’s Port Jefferson, NY Buick dealership in 1978 (car company employees reading this are all now thinking, “Ah, he was a dealer’s son, that explains it all!”) In 1990, he approached GMAC with a request for them to floorplan conversion vans that he was going to have built and then exported. McNamara’s brilliant swindle was deliciously simple. Just picture Lundegaard with a really big brain. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. We would like to show you a photo of McNamara but none are to be found. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars. Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.īetween 19, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law. All financial advisors in Bloomington, MNĭeprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /storage/content/29/143129//public_html/opendb.php on line 9ĭroid-app:// the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC).Investment Services - Financial Planning in Bloomington.Retirement Planning Consultants & Services in Bloomington.Loan & Financing Services in Bloomington.Banks - Financial Planning in Bloomington.Financial Planning - Investment Services in Bloomington.
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