Former Grand Rapids car dealership owner indicted in $1.5M fraud case

The former owner of the Montavon Motors Ford dealership in Grand Rapids has been indicted in U.S. District Court in Minneapolis accused of defrauding American Bank of the North of $1.5 million.

Jodi Anne Montavon, 47, of Grand Rapids, was charged with one count of bank fraud and one count of engaging in a monetary transaction in criminally derived property. The indictment was filed on Oct. 15 and unsealed on Oct. 19.

According to the indictment, Montavon exaggerated the cost of vehicles brought into inventory at her Ford dealership so that she could borrow more money from American Bank of the North than the cars were actually worth, the U.S. Attorney’s Office said.

Montavon was allegedly selling financed vehicles without promptly repaying the amount advanced by the bank to acquire them. In addition, she purportedly provided false monthly statements to the bank to conceal recurring cash flow problems at Montavon Motors.

The indictment also alleges that Montavon transferred $42,069.98 from the operating account to American Express to pay off the balance owed on a Montavon Motors business credit-card account that included personal charges incurred during a personal trip to the Virgin Islands.

If convicted, Montavon faces a potential maximum penalty of 30 years in federal prison for one count of bank fraud and 10 years in prison for one count of engaging in a monetary transaction in criminally derived property.

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