Used car dealer sentenced to federal prison for $2.8M fraud scheme

PROVIDENCE, R.I. (WLNE) — A former used car dealer who led a conspiracy to defraud banks and lenders in multiple states, including Rhode Island, was sentenced to five years in federal prison today.

According to court documents, 35-year-old Rolando Estrella, of Dracut, Massachusetts, was the former owner of a used car dealership in Lawrence, Mass., and admitted to a judge in Providence that he recruited, employed and directed others to file fraudulent loan applications using stolen identities and information.

Officials said once the loans were issued by the banks and lenders, the proceeds were deposited into bank accounts controlled by members of the scheme and were quickly withdrawn in cash.

Information presented in court confirmed that Estrella and his co-conspirators intended to defraud banks of more than $2.8M.

Estrella pleaded guilty on Oct. 1. 2022, to a charge of conspiracy to commit bank fraud, seven counts of bank fraud and one count of fraudulent use of a Social Security number.

He was sentenced to 60 months in federal prison followed by three years of supervised release. He was also ordered to pay restitution to the financial institutions he defrauded, totaling more than $2.8M.