Escondido
Two former salesmen at an Escondido car dealership pleaded innocent Tuesday to conspiracy and fraud charges stemming from their alleged plot to create fake credit histories for customers with bad credit ratings to qualify the buyers for bank loans.
Steven J. Moran, 28, of the 500 block of Pawnee Glen Road in Escondido, and Gerald M. Diesel, 47, of the 8300 block of OraBelle Lane in El Cajon, were allowed to remain free after each posted $5,000 bail as ordered by U.S. Magistrate Barry Moskowitz.
Rancho Penasquitos accountant John Z. Hurlburt Jr., 38, of the 9400 block of Aguaya Street, also pleaded innocent to charges of aiding the conspiracy by preparing false tax returns to support the credit applications. He also was released after posting $5,000 bail.
A seven-count indictment accuses Diesel and Moran, former salesmen at Hyundai of Escondido, of fabricating incomes, Social Security numbers and homeowner information on three credit applications submitted last October to Bank of America and Union Bank.
The dealership was not implicated, and both salesmen were fired when the alleged scam was uncovered through a tip from the third customer the defendants allegedly tried to involve.
Neither bank lost any money, and the cars involved were returned to the dealership.
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