Ex-American Honda Executive Pleads Guilty in Kickback Probe
A former American Honda Motor Co. executive on Thursday became the 19th person to plead guilty to federal charges of participating in a massive kickback and bribery scheme at the Torrance-based auto importer.
James Mortimer, 39, a former Honda regional manager, pleaded guilty in U.S. District Court in Concord, N.H., to charges that he knew of the illegal actions of others--including two American Honda executives based in Orange County--but failed to report them.
The kickback investigation has involved dealers and former Honda executives in 30 states. Federal prosecutors allege that more than $11 million worth of illegal payments were made over a 10-year period to managers and executives.
Also on Thursday, a federal grand jury indicted a Los Gatos Honda dealer, Ted Stevens, and a former Honda dealer from Raleigh, N.C., Thomas Griffin, on charges of obstructing justice and making false statements during the investigation. That brought to 24 the number of people who have been charged in the case.
On Wednesday, a Pennsylvania man, Raymond W. Hovsepian, pleaded guilty to a conspiracy charge in the case. Prosecutors alleged that Hovsepian helped certain former Honda executives arrange to collect kickback payments in return for Honda dealership franchises.
Mortimer was linked to the scam after he unwittingly shared in a $100,000 alleged payoff with two of his superiors that stemmed from the approval of a Santa Fe, N.M., dealership.
Mortimer said he thought the $33,333 check he received was a bonus for his work on the account. Authorities agreed that Mortimer did not realize the money was a payoff.
The dealer, who has not been charged, wrote a $100,000 check when he received the Honda franchise. The money was divided among Mortimer and two Orange County men: Stanley James Cardiges, American Honda’s former senior vice president for sales, and Edward Temple, former Honda western zone manager, said Assistant U.S. Atty. Don Feith. Mortimer deposited his check and paid taxes on it.
Feith agreed that Mortimer did not realize he was being paid off. He knew that Temple and Cardiges were involved in criminal activity, however, and should have had reason to believe that the money was ill-gotten, Feith said.
Temple, who lived in Newport Beach but reportedly moved to Georgia recently, has pleaded guilty to mail fraud and faces five years in prison for his part in the scam.
Facing a three-month trial that starts Tuesday are Cardiges of Laguna Hills; John Billmyer of Raleigh, N.C., Cardiges’ predecessor as Honda’s top U.S. sales executive; and Dennis Josleyn of Penn Valley in Northern California, a former West Coast sales manager for Honda.
They are accused of playing favorites in channeling Hondas and Acuras to dealers at a time when the cars were in high demand and short supply.
