Former car dealer takes plea deal in fraud case

By John W. Goodwin Jr.

YOUNGSTOWN — A former car dealer could spend more than 11 years in prison and pay fines in excess of $35,000 after pleading guilty to multiple counts of theft.

Buddy Harvey, 42, of Berlin Center, was facing 63 counts in what authorities said was an automobile- dealing fraud scheme. They consisted of 43 theft counts, 15 title offenses, three records-tampering counts and one count each of defrauding creditors and passing bad checks. All 63 counts are felonies.

Harvey appeared Tuesday before Judge John Durkin of Mahoning County Common Pleas Court and agreed to a plea deal with prosecutors.

According to Robert E. Bush Jr., chief of the county prosecutor’s criminal division, Harvey pleaded guilty to six counts of theft and one count of defrauding creditors. He could spend up to 18 months in prison and pay a fine of up to $5,000 on each count.

Harvey also pleaded guilty to one count of passing bad checks. He could spend a year in prison and pay a fine of $2,500 on that charge.

Bush said the prosecutor’s office would stand silent on any sentencing. Harvey is to be sentenced by Judge Durkin on Oct. 29.

Harvey’s brother Gregory A. Harvey, 37, also of Berlin Center, has pleaded guilty to three felony counts of theft. Bush said Buddy Harvey likely will be required to set aside a not-yet-specified amount for restitution to victims.

The indictment was filed against the Harveys on Dec. 6, 2007, and pertains to offenses that reportedly occurred between 2002 and 2006.

The Ohio attorney general’s office has filed a civil lawsuit against the Harveys and their former Harv’s Cars dealership in Boardman, which earlier operated in Canfield, seeking restitution for the victims.

Some victims told police they traded in vehicles at Harv’s Cars in Boardman for newer models. As part of the agreement, the dealership was to pay off the loan balances on the traded-in vehicles, but it failed to do so, forcing victims to make payments on both the old and newer vehicles, according to the complaints.

Other complaints came from those who bought vehicles at Harv’s but contended they never received the titles.

Other people said they paid for warranties on vehicles purchased at the dealership and later learned that those warranties hadn’t been processed and weren’t valid.

The Harveys also took in vehicles to be sold under a consignment arrangement, in which the Harveys were to get a commission and give the remaining sale proceeds to the sellers. The Harveys would sell the cars and not give the proceeds to the people who brought in the vehicles, and purchasers would drive the vehicles without valid titles, police and prosecutors said.

jgoodwin@vindy.com