Wednesday, December 7, 2011

Former Car Dealer Sentenced for Embezzlement Charges

Reginald Hubbard
On December 5, 2011, Reginald Timothy Hubbard, 58, was convicted of  11 counts of Aiding and Abetting Embezzlement of State Property, 12 counts of Aiding and Abetting Obtaining Property by False Pretenses, and Malfeasance of a Corporate Agent.

Reginald Hubbard is the former President and Owner of Hubbard Automotive, LLC d/b/a Honda of Lake Norman in Huntersville, NC. He was investigated by the N.C. Department of Motor Vehicles (“DMV”) for collecting license, title and registration fees from customers, but not turning these fees over to the DMV.

Additionally, he condoned the dealership’s practice of accepting trade-in vehicles without paying off the outstanding lien. Instead of paying the balance owed on the vehicle, the defendant sold the car to a new purchaser without having a valid title.

The Honorable Linwood O. Foust sentenced the defendant to three consecutive sentences of 13-16 months in prison (total of 29-48 months). Those sentences were suspended pending his successful completion of at least 18 months of supervised probation with the requirement that he complete 50 hours of community service and pay full restitution to all of the victims. The defendant must also serve 11 months in the county jail as a condition of probation.

Prior to pleading guilty, the defendant paid $30,500 in restitution and will continue making restitution payments while on probation. All of the outstanding liens have been paid off, and titles have been transferred to the rightful owner. After discussions with many of the victims, it was determined that one of the primary goals of the prosecution should be obtaining restitution for those who were suffering a financial hardship that resulted from the defendant’s conduct.