Two men behind auto loan company indicted on felony grand larceny

BUFFALO, N.Y. (WIVB) - Two men behind a western New York auto loan company have been indicted on felony grand larceny and fraud charges. Prosecutors say they sold bogus warranties. Dozens of consumers Called 4 Action and the State Attorney General responded.

Jason Vaughn said, "There's a legitimate business out there. This is not one of them."

Jason Vaughn is referring to the now-defunct Hunter-Paz Funding Services, or H-P Funding, of Orchard Park.

Jason went there to refinance the loan on his boat and the deal included an extended warranty for $5,000.

Vaughn said, "That service agreement was never put through, the paperwork never received by the primary company, and he pretty much pocketed the money."

The co-founders of Hunter-Paz, Matthew Hunter and John Pazamickas, were indicted for ripping off Jason and close to 120 other customers to the tune of a quarter million dollars in these car loan refinancing deals.

Dave Johnson called for action when he tried to get a refund on his warranty back in August.

Dave Johnson: "And they told me that they sent Hunter my refund back on February 13th."

Al Vaughters: So in May, they had already sent the check back to Hunter-Paz in February?

Dave Johnson: "Yes."

Prosecutors say, Hunter and Pazamickas stole close to a quarter million dollars from clients, money that was supposed to activate their car warranties and pay off loans.

Assistant Attorney General Dennis Rosen said, "The bank sent the proceeds of the loan, that was supposed to pay off the lien, directly to defendants, and they did not pay off the loan, and kept the proceeds."

Dennis Rosen told Judge Michael D'Amico H-P Funding's customers are getting some relief from the banks and...

Rosen said, "We have talked to the warranty companies and they have stepped up to the plate, and they are servicing the consumers' contracts, and also providing, under the contracts, cancellation refunds."

Jason Vaughn said, "Picture this in your mind: Pazamickas and Hunter in handcuffs; beautiful thing, I cannot wait to see it, later. I hope they show it on the news!"

Matthew Hunter of Buffalo and John Pazamickas of Youngstown are charged with grand larceny and scheming to defraud.

But Attorney General Andrew Cuomo's office suspects there may be other victims out there.

If you believe you were ripped off by Hunter-Paz Funding, call their Consumer Hotline at 853-8404.

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