Former Harlingen car dealer accused of bank fraud
BROWNSVILLE - A former Harlingen auto dealer will stand trial in August in federal court on bank fraud charges.
John Jeff Woodward Jr., 47, is named in a six-count federal indictment charging that he developed a check-kiting scheme to defraud three banks.
The indictment was returned last month.
Woodward was formally arraigned on the charges Thursday before U.S. Magistrate Felix Recio. Woodward pleaded not guilty to the charges and was released on a $100,000 bond, according to court documents.
Jury selection for his trial will begin Aug. 6, before U.S. District Judge Andrew S. Hanen.
The indictment alleges that Woodward's scheme consisted of making a series of deposits and withdrawals of checks, backed by insufficient funds, between and among the three banks and that at least one of the banks suffered a significant financial loss.
The banks are Elsa State Bank, First National Bank and Texas State Bank.
While federal authorities estimated the financial loss at $2 million to $3 million, Woodward's defense counsel estimated the loss at less than $500,000.
According to the U.S. Attorney's Office, Woodward operated Harlingen Imports, also known as Competition Car and Truck Center in Harlingen, Competition Chrysler Dodge Jeep and Competition RGV in Raymondville and Competition Motor Sports in Harlingen and McAllen.
It was through these businesses that he used his check-kiting scheme, according to the indictment.
Authorities said the check-kiting scheme occurred from Nov. 1, 2004 through Jan. 30, 2006.
Each indictment charge carries a maximum prison sentence of 30 years and a $1 million fine.
