Twelve charged in alleged luxury-car loan fraud

A dozen people charged with obtaining fraudulent car loans from State Farm Bank on Friday were ordered held on bonds ranging from $25,000 to $100,000. The defendants were arrested Wednesday in a series of police raids by Cook County sheriff’s police and local police in Chicago and Alsip, Oak Lawn, Palos Hills and Orland Park.

They’re accused of taking part in a scheme to defraud the bank, an arm of State Farm Insurance Co., of about $300,000 by getting loans on luxury cars — such as Mercedes, Jaguars and BMWs — that were not owned by the supposed sellers, police said. Most of those charged are of Middle Eastern origin, and U.S. immigration officials expressed interest in four of the people.

Some members of the fraud ring are involved in businesses, including used-car dealerships, that were used as front operations for the scheme, police said.