Stellantis Financial Services is suing Sky Auto Mall of Newhall and Center Point, Iowa, for $12.3 million in losses as well as punitive damages stemming from an alleged fraud scheme.

KCRG’s Adam Carros reports Sky Auto Mall’s owners, Igor, Yelena and Alex Tovstanovsky, are accused of “double flooring” — obtaining floorplan financing from SFS as well as Ford Credit for the same vehicles.

“The lawsuit claims Sky kept two financial records to hide the fraud: a real one that detailed the fraud and a ‘distorted’ one that hid the duplicate loans. Stellantis said Sky Auto Mall also did not repay the loans after selling vehicles, pocketing $1.4 million in proceeds,” Carros writes.

Affected “cars, parts and equipment” financed by SCS and worth upwards of $20 million could be seized if a requested court order is granted, according to KCRG.

Read more at KCRG