Owners Of Defunct Auto Financing Co. Defrauded $11M From Investors

BOSTON – The founders and principals of Inofin Inc., a defunct motor-vehicle finance company, pleaded guilty on Thursday in federal court to defrauding investors of more that $11 million.

In U.S. District Court, Michael J. Cuomo, 54, of Plymouth, and Kevin J. Mann Sr, 66, of Marshfield, each pleaded guilty to one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud, according to the U.S. Attorney's Office.

U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 20.

From 1994 through February 2011, Cuomo and Mann owned and operated the Rockland-based Inofin, which funded loans to used car buyers who could not qualify for traditional financing, prosecutors said.

In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals.

Investigators said Cuomo and Mann falsely represented that the investors could rollover money held in retirement plans to Inofin, and that Inofin, as an authorized custodian of retirement money, would invest and then return the principle with interest.

But at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors transferred more than $11 million in retirement funds to Inofin, practically all of which was lost.

Inofin ultimately entered into involuntary bankruptcy proceedings.