Bordertown car salesman gets 6 years for defrauding customers

CHINLE

A shady car salesman from Holbrook, Arizona, whom Navajos had been complaining about for years, was sentenced Thursday to six years in prison after pleading guilty to four counts of fraudulent schemes and artifices, a Class II felony.

The plea was part of a plea bargain in which 17 other charges, ranging from forgery to auto theft, were dropped. Francisco “Cisco” Lerma will serve the four six-year sentences concurrently — in other words, at the same time, meaning six years total, minus 338 days he has already served awaiting his pre-trial conference.

Lerma will also pay restitution to his victims.

The Navajo Nation Human Rights Commission worked with the Winslow Police Department in the investigation.

NNHRC investigator Varvara Phillips was present at the sentencing in Navajo County Superior Court and said Lerma apologized for his actions.

“He said nobody should have to go through what he put his victims through, and promised to pay 100 percent restitution,” Phillips said.

Phillips said Lerma’s actions affected about 50 customers, a majority of whom were Navajo elders. According to Phillips, who helped investigate the case, Lerma defrauded customers for years while working for Tate’s Auto Center, Winslow Ford and Hatch Motors.

Phillips said Lerma would pocket customers’ down payments instead of depositing them with the dealership, and sometimes took buyers’ vehicles as trade-ins but then would stow them in a secluded parking lot and rent them to other people. He sometimes delivered a vehicle that belonged to another person.

“While committing all these acts, Mr. Lerma was on probation for similar charges,” Phillips said. “Mr. Lerma’s name became well known with the written complaints filed with NNHRC.”

Phillips said the police and the HRC are still trying to figure out the amount of restitution Lerma owes.

Another person sometimes associated with Lerma in the complaints, Jason Kehoe, also recently had criminal charges brought against him, Phillips said.

However, the fact that these two are off the streets does not mean that consumers should let their guard down, Phillips said.

“Obviously, we’re not getting any more complaints about Mr. Lerma,” she said, “but we’re still getting complaints.”

Phillips urged car buyers to know their rights. The HRC has literature about the topic that can help consumers prepare before they start shopping.

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