Two Lowcountry men, who operated a Beaufort area used car dealership from 2003 to 2005, were sentenced in federal court in Charleston Tuesday for conspiracy to commit bank fraud.
39-year-old Floyd Hargrove of Beaufort and 32-year-old William Toadvine of Mt. Pleasant admitted to misleading lenders that they were making car loans to their customers by presenting false loan applications on behalf of the customers. Hargrove and Toadvine exaggerated their customers’ income or minimized their debt, so they could qualify for loans. They also falsified the mileage of the used cars, which worked to overstate the value of the loan collateral. Many of the car loans were not repaid resulting in loses of $421,000 to various financial institutions. Hargrove and Toadvine were sentenced to 40 months in prison and ordered to pay $421,000 in restitution.