When the dealership’s finance manager adds ghost equipment to the book out sheet, in order to artificially inflate the value, it is called Power Booking.

Where the bank finds violations aggregating $5000 or more, “where the suspect can be identified,” the financial institution is required to file a Suspicious Activity Report. It is a criminal violation.

The bank gets a “Safe Harbor” by reporting the dealer. They must report who benefited from the transaction (you, as the dealer), how much and how. Importantly, they must also “indicate whether the possible violation is an isolated incident or relates to other transactions.”

Consider policies at your dealership to prevent these issues. If you have any questions, please feel free to reach out.

Click here to read the full Suspicious Activity Report