A Montreal resident, Fawaz-Romel Abdel-Kadel, faces multiple lawsuits for allegedly defrauding car dealerships to export vehicles without payment. Following the purchase of a luxury Toyota Tundra, legal action was taken when the vehicle was traced to the Port of Montreal. An investigation revealed over 30 fraudulent credit applications linked to Abdel-Kadel’s company, prompting major car manufacturers to seek recovery of the vehicles. Abdel-Kadel claims ignorance of export regulations while continuing to make payments on the cars.
Montrealer Faces Legal Troubles Over Alleged Vehicle Export Fraud
A resident of Montreal is currently embroiled in a series of legal battles, facing four lawsuits due to alleged attempts to defraud multiple car dealerships in order to export vehicles without payment. Fawaz-Romel Abdel-Kadel, the individual in question, reportedly managed to deceive a dealership initially, raising suspicions among auto manufacturers as per court documents.
Last July, Abdel-Kadel’s numbered company purchased a luxurious Toyota Tundra for an impressive $109,999 from a dealership located in the Plateau-Mont-Royal area. However, within just two months, Toyota’s credit agency had to resort to legal action to reclaim the truck, which was tracked to the Port of Montreal using its GPS system.
Investigation Unveils Fraudulent Activity
Despite a pre-judgment seizure being ordered, the authorities were unable to locate the vehicle before it was presumably exported. Consequently, Toyota initiated legal proceedings against Abdel-Kadel, who is believed to be heavily involved in the vehicle’s exportation.
The investigation commenced in early September when Honda expressed concerns about potential fraud after receiving a financing request. This prompted Honda to alert Toyota about their suspicions. Reports indicate that over 30 credit applications were submitted by Abdel-Kadel’s company in recent months, with approximately 90% of the available credit utilized, as stated in the lawsuits.
This type of fraudulent activity is referred to as a “Bust Out scheme,” where borrowers maximize their credit limits and then exceed them without creditors realizing the scheme in real-time. Legal representative Me François Joubert noted that numerous creditors were misled, stating that had they been aware of the scheme, they would not have approved the requests.
Fawaz Services, the company led by Abdel-Kadel, had also acquired three additional vehicles: a Mercedes-Benz GLE53 4Matic, a Hyundai Santa Fe, and another Toyota Tundra, totaling a staggering $265,300. Allegations have surfaced that false financial statements were provided to dealerships, indicating inflated revenues and profits to justify credit approvals. However, the accounting firm responsible for these statements confirmed they did not issue such documents, highlighting the fraudulent nature of the claims.
In response to the situation, Toyota, Hyundai, and Mercedes-Benz have taken legal action to recover the other vehicles before they can be exported. The geolocation of the Toyota Tundra revealed it was located in a residential area of Sainte-Thérèse, on Montreal’s North Shore, and had not yet been placed in a container for export, intensifying the urgency for intervention.
In a recent interview, Abdel-Kadel defended his actions, claiming he was unaware of the regulations surrounding vehicle exports. He explained, “They told us: we are sending it because we are going on a trip, we will use it there and bring it back with us.” He also mentioned that he had purchased another vehicle that remained in Montreal for company use. Despite the ongoing legal issues, Abdel-Kadel asserted that he continues to make payments on the various vehicles as he awaits the resolution of these cases.
As this situation unfolds, it highlights the complexities surrounding vehicle financing and the importance of vigilance among dealerships to prevent fraud.