A Virginia Beach man who ran a car dealership in Chesapeake is headed to federal prison for running a wide-reaching auto loan scam that cost banks more than $2 million.
Adrian Knight, 41, the owner of Ace Auto Sales, was sentenced to six years in prison after pleading guilty to multiple counts of fraud, including conspiracy to commit mail, bank, and wire fraud, as well as bank fraud and wire fraud.
Federal investigators say that from 2019 to early 2023, Knight led a group that submitted fake car loan applications using falsified paperwork showing vehicles being sold through Ace Auto Sales—vehicles that didn’t actually exist.
Court documents show Knight and his group altered vehicle identification numbers (VINs) and submitted bogus income and job information to secure loans. In most cases, the banks wired money to Knight based on those applications, thinking real cars were being bought. Instead, no vehicles ever changed hands.
Knight kept part of the loan money and split the rest with his co-conspirators. They would later stop paying on the loans or claim their identities had been stolen. In the end, two dozen financial institutions were left holding the bag.
“Adrian Knight conspired to profit from exploiting financial institutions that serve honest consumers,” said Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia. “These schemes undermine legitimate lending and drive up costs for borrowers.”
Prosecutors said the long-running fraud had a ripple effect on lenders, borrowers, and auto dealers who operate above board.
Knight was sentenced in federal court in Norfolk.