A Cromwell man who was previously convicted for a mortgage fraud scheme pleaded guilty last week to an auto loan scheme that defrauded lenders of $650,000.

George Hajati, 41, waived his right to be indicted and pleaded guilty in Bridgeport federal court on Dec. 20 to one count of wire fraud stemming from the auto loan fraud scheme. Hajati also admitted to violating the conditions of his supervised release following his prior federal conviction, according to a statement from the U.S. attorney’s office.

According to court documents and statements made in court, Hajati owned and operated a used car dealership located at 1075 Newfield St. in Middletown known as Car Nation LLC, Car Nation CT LLC and Middletown Motorcars.

In connection with automobile loan applications for multiple borrowers, Hajati, and employees at his direction, submitted documents and statements to lenders that falsely represented the borrower’s employment, salary, sources of income, and the fact and amount of a down payment. The false documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration.

Hajati falsely indicated that borrowers made salaries they did not make, worked at jobs they did not work, received income from the Social Security Administration they did not receive and made down payments they did not make. In some instances, the borrowers were not aware of, and did not consent to, Hajati using their personal identifying information to obtain automobile loans in these ways.

Between approximately April 2016 and July 2019, Hajati defrauded lenders, including two credit unions, of $654,952.56 through this scheme.

Hajati was previously convicted of federal conspiracy and fraud offenses related to a Hartford-area mortgage fraud scheme that defrauded various lenders of more than $1 million. In August 2015, Hajati was sentenced in Hartford federal court to 12 months and one day of imprisonment, followed by three years of supervised release. He was released from federal prison in August 2016, and was on supervised release at the time of the auto loan fraud.

U.S. District Judge Robert Chatigny in Hartford set a sentencing for March 6, 2020. Hajati faces a maximum term of imprisonment of 30 years for the fraud offense, and two years of imprisonment for violating the conditions of his supervised release.

Hajati was arrested on a federal criminal complaint on July 2 and is released on a $560,000 bond pending sentencing.