Former Burlco car dealer charged with bank fraud

The former owner of a Bordentown car dealership has been indicted on bank-fraud and money-laundering charges in what federal authorities allege was a $7 million scheme to defraud area banks.

Denis Kelliher, 39, of Toms River, N.J., was named in an 11-count indictment built around what investigators described as a "check-kiting scheme" in which he wrote checks on various bank accounts he controlled, knowing there were insufficient funds to cover the amounts.

Kelliher, who was arrested at his home yesterday, was the principal operator of Cartec Motors L.L.C., on Route 206 in Bordentown, according to a statement released by the U.S. Attorney's Office. The dealership bought and sold new and used cars.

Authorities charged that Kelliher "attempted to create artificial balances in checking accounts he controlled" at KeyBank, Commerce Bank (now TD Bank), First Constitution Bank, and Roma Bank.

The 11-count indictment alleges that through a series of financial maneuvers, Kelliher overdrew an account at KeyBank for more than $6.9 million and at Commerce Bank for more than $200,000.

The indictment also includes a wire-fraud count in which Kelliher is charged with arranging a $410,000 loan from a Cartec customer by providing a false financial statement showing his network exceeded $6.2 million. In fact, authorities allege, the statement failed to disclose that at the time KeyBank had obtained a $27 million judgment against Cartec.