Ex-American Honda Official Pleads Guilty in Kickback Case
A former American Honda Motor Co. executive has pleaded guilty and three other former officials face further charges in a bribery and kickback scam, U.S. Atty. Paul Gagnon announced Tuesday.
They are charged with participation in a nationwide scheme in which former company officials received about $10 million in kickbacks, Gagnon said. In exchange for the kickbacks, the defendants were said to have funneled Honda cars to dealers at a time when the vehicles were in high demand and short supply.
John Conway, a former eastern regional sales manager of American Honda and a former part-owner of several Honda and Acura dealerships, pleaded guilty to conspiracy to commit mail fraud and to bribing American Honda salespeople from 1986 to 1990 while he was a dealer, Gagnon said. He faces five years in prison.
James Cardiges of Laguna Hills; John Billmyer of Raleigh, N.C.; and Dennis Josleyn of Penn Valley, Calif., are the only three of 18 executives who haven’t pleaded guilty, Gagnon said.
In addition, the three have been charged with receiving about $1.5 million in kickbacks and setting up fake Honda and Acura dealerships to conceal the scheme and the names of people who bribed them, Gagnon said.
Cardiges is accused of receiving gifts including Rolex wristwatches, $1,000 business suits, $24,000 worth of furniture and a one-year lease on a Mercedes.
The 18 people have been charged with crimes including racketeering, mail fraud, conspiracy, obstruction of justice and witness tampering.
Cardiges and Josleyn are charged with racketeering, mail fraud and conspiracy to commit mail fraud. The new indictment alleges Cardiges tried to get witnesses to lie to federal agents.
Billmyer is charged with conspiracy to commit mail fraud. He faces five years in prison if convicted, Cardiges 40 years and Josleyn 30 years, Gagnon said.
American Honda and prosecutors say the company, based in Torrance, was a victim in the case and has been cooperating with authorities.
“The illicit activities uncovered by the U.S. attorney’s investigation represent a betrayal of trust that has resulted in the theft of millions of dollars from American Honda,” the company said in a statement.
A trial date should be set by the end of the month.
