A man from Youngstown and another from Buffalo who briefly ran an auto loan brokerage company were arrested Wednesday on several felony charges for allegedly stealing over $240,000 from their customers.
John Pazamickas, 45, 425 Hawthorne Place, Youngstown, and Matthew Hunter, 35, Tracy Street, Buffalo, sold non-existent warranties to more than 120 customers and stole auto loan payments from their customers while operating their Orchard Park business, Hunter-Paz Funding Services, from September 2006 to November 2007, according to a release from state Attorney General Andrew Cuomo.
The two men were each charged with second- and third-degree grand larceny and first-degree scheme to defraud and arraigned in front of Erie County Judge Michael D’Amico. Pazamickas was released on his own recognizance and Hunter was held on $10,000 cash bail at the Erie County Holding Center.
Both men offered to arrange better automobile and boat loans for customers and convinced them to purchase new warranties, but never sent payments for the warranties, according to the release. They also took money from the new loans they sold to customers.
The latter situation happened to Jason Vaughan, a 35-year old North Tonawanda resident who heard an advertisement for the company and contacted Hunter. Hunter found a loan with a better interest rate for the $50,000 Vaughan owed on his boat, but never paid off the first loan.
“It was a pretty aggravating, frustrating situation,” Vaughan said. “I would figure on paying one boat loan and I ended up paying two. Every time I decided to stop paying I’d get phone calls from repo places, credit places. I couldn’t figure out what was going on.”
Vaughan later added, “It was pretty frustrating for me.”
Hunter eventually began working with Erie County Assistant District Attorney Dennis Rosen and Cuomo’s office. Cuomo’s office also reached agreements with the affected banks and warranty companies so that customers weren’t responsible for the second loans.
The case will soon be assigned to a judge a pretrial conference between attorneys will be set.
Calls and a voice mail to Pazamickas’ home in Youngstown were not returned Wednesday.
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