A Harlingen business man will spend four years and three months in federal prison after being sentenced in a check-kiting scheme.
John Jeff Woodard, Jr. appeared before U.S. District Court Judge Andrew Hanen on Wednesday morning.
Judge Hanen sentenced the 49-year-old businessman to 51 months in federal prison and to pay $2.5 million dollars in restitution.
A federal grand jury indicted Woodard back in 2009 on five counts of bank fraud and one count of operating a scheme to defraud a federally-insured bank.
Federal prosecutors alleged that Woodard used his businesses to run a “check kiting” scheme between Nov. 1, 2004, and Jan. 30, 2006.
Prosecutors said Woodard wrote $114 million dollars in checks and targeted the following dealerships in his scheme:
• Harlingen Imports (also known as Competition Car and Truck Center) in Harlingen
• Competition Chrysler Dodge Jeep in Raymondville
• Competition RGV in Raymondville
• Competition Motor Sports in Harlingen and McAllen
Banks were left holding $1.6 million dollars in losses when the check-kiting scheme collapsed.
Check kiting is be defined as passing a series of hot checks between multiple bank accounts to generate money that really isn’t there.
Judge Hanen is allowing Woodard to remain free on bond until his prison assignment has been made.
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