United States of America v. Mark Janbakhsh

Nashville, Tennessee, criminal defense lawyer represented the Defendant charged with Conspiracy to Commit Bank Fraud, Bank Fraud, Making False Statements to a Bank, Bankruptcy Fraud, and Making False Statements Under Oath.

Mark Janbakhsh, 51, of Brentwood, Tennessee, was the chief executive officer and majority owner of a car dealership company named Auto Masters. In addition to Auto Masters, Janbakhsh owned several other Nashville area businesses, including Plaza Mariachi. Between approximately 2013 and 2017, Auto Masters had a line of credit with Capital One and First Tennessee Bank (now First Horizon Bank). Janbakhsh conspired with his brother Ron Janbakhsh, and their co-conspirators, Steve Piper and Christian Quiroz, who also worked for Auto Masters, to submit false documentation to Capital One to artificially inflate the value of the company’s collateral which would allow Mark Janbakhsh to draw on lines of credit he was otherwise not entitled to take. During the course of the scheme, Auto Masters fraudulently obtained over $24 million dollars that it was not entitled to receive.

From at least 2013 until October 2017, Mark Janbakhsh conspired with Piper, Ron Janbakhsh, and Quiroz to submit false borrowing base certificates to Capital One—by inflating their collateral—so that Auto Masters could take draws on the line of credit that they were not entitled to take. The reason for committing this fraud scheme was simple: Mark Janbakhsh wanted access to additional money to pay for his lifestyle and his other business ventures (as did his brother Ron). Mark Janbakhsh lived a lavish lifestyle—he and his wife drove luxury cars (including a Bentley and Ferrari) and his family took expensive vacations, including to places like Dubai. But the biggest driver was Mark Janbakhsh’s need for money to support his other businesses and, in particular, the construction of Plaza Mariachi.

As investigators and bankruptcy proceedings loomed, the evidence showed that Mark Janbakhsh directed company employees to delete data, emails, and other company information that would have shown his fraudulent dealings. Auto Masters declared bankruptcy in 2017, and Mark Janbakhsh lied about the fraud while under oath during the bankruptcy proceedings. When Mark Janbakhsh learned that federal agents who were investigating the fraud were attempting to speak with co-conspirators, he offered Quiroz over $300,000 if he would leave the jurisdiction in order to thwart the investigation.

In addition to their terms of imprisonment, Mark Janbakhsh, Steven Piper, and Christian Quiroz were ordered to pay $11,272,521.20 in restitution and to serve one year of supervised release. Ron Janbakhsh was ordered by pay $4,185,478 in restitution and to serve one year of supervised release.

The case was investigated by the Federal Bureau of Investigation, Nashville Field Office, and IRS Criminal Investigation.

Assistant U.S. Attorney J. Christopher Suedekum prosecuted the case.

The Defendant was found guilty and was sentenced to 42 months in prison.