Owner and Finance Manager of Norman Used Car Lot Plead Guilty to Bank Fraud in Connection with Bank of Union Failure

Topics:  Lindsey Street Motors, Timothy Jay Williams, Stephen L. Butz

U.S. Attorney’s Office
Western District of Oklahoma
26 August 2016

FOR IMMEDIATE RELEASE

Oklahoma City, Oklahoma – TIMOTHY JAY WILLIAMS, 54, from Edmond, Oklahoma, and STEPHEN L. BUTZ, 53, from Blanchard, Oklahoma, both pleaded guilty to bank fraud this week, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.

Williams was the owner of Lindsey Street Motors, a used car lot in Norman, Oklahoma, and Butz was his finance manager. According to court documents, Williams entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors that granted the bank a secured interest in all used motor vehicles, proceeds, and products of Lindsey Street Motors. In return, The Bank of Union extended to Williams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold. After obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.

At their plea hearings this week, Williams and Butz each admitted their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00. At sentencing, each of the defendants face up to 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. Per the terms of their plea agreements, they will also be ordered to pay restitution to the victims of their conduct in an amount to be determined by the court at the time of sentencing. A sentencing date will be set by the court in approximately 90 days.

This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.