Timothy Jay Williams, 54, from Edmond, Oklahoma and Stephen L. Butz, 53, from Blanchard, Oklahoma, both pleaded guilty to bank fraud last week.
Williams was the owner of Lindsey Street Motors, a used car lot in Norman, Oklahomam and Butz was his finance manager. According to court documents, Williams entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors that granted the bank a secured interest in all used motor vehicles, proceeds, and product of Lindsey Street Motors. In return, The Bank of Union extended to WIlliams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold. After obtaining the loan proceeds, Williams and Butz sold collateralize vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing,Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers,without the notifying The Bank of Union of the vehicle sales or repaying Lindsey street Motors’ line of credit.
At their plea hearing last week, Williams and Butz each admitted their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00. At sentencing, each of the defendants face up to 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. per the terms of their agreements they will also be ordered to pay restitution to the victims of their conduct in an amount to be determined by the court at the time of sentencing. A sentencing date will be set by the court in approximately 90 days.