2 Lake in the Hills residents indicted in car title fraud scheme

Two Lake in the Hills residents were indicted last week on federal charges alleging they and others tied to a suburban car dealership were involved in an elaborate scheme to transfer title to more than 100 vehicles on false representations, causing a loss of almost $2.8 million to lenders and customers, the Federal Bureau of Investigations reports.

Patrick McManamon, of Elk Grove Village, the owner of the now-shuttered Clover Financial Sales & Leasing Inc. in Roselle, was charged with mail and wire fraud in an 11-count federal grand jury indictment returned last week and unsealed Monday following his arrest, the FBI reports.

McManamon is accused of causing at least 127 vehicles to be transferred to his business based on false representations between March 2005 and December 2006. He also is accused of failing to pay off the loans and leases on those vehicles and causing the losses to Clover's lenders and customers, the FBI report said.

Also indicted, but not arrested, were Lake in the Hills residents Glenn Stancil, 37, and Pamela Mendyk, 35.

Reportedly, Stancil was Clover's former president and ran its used car department. Mendyk reportedly worked in Clover's finance department. Both will be arraigned at a later date in U.S. District Court, the FBI reports.

Details of the indictment reportedly accuse McManamon and Stancil of persuading customers to transfer their interest in vehicles that they owned or leased over to Clover, assuring that Clover would pay off the customers' balance on the vehicles.

McManamon and Stancil then allegedly sold or leased those vehicles to other customers by claiming that Clover had good titles on the vehicles, the report said. McManamon, Stancil and Mendyk allegedly arranged for lending institutions to finance the purchases and leases of those vehicles from Clover by using fake documents showing that Clover had paid off the prior loans and leases.

Each count of wire or mail fraud brings a penalty of up to 20 years in prison fines or a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater, the FBI reports.

The investigation is ongoing and officials ask that anyone who thinks he or she might have been a victim to contact the FBI at (847) 290-0525.