By Joseph Edgerton
Staff Writer

An employee of Manchester Mitsubishi is facing extensive financial reparations and possible jail time after she pleaded guilty to alleged bank fraud.

According to Assistant U.S. Attorney General Robert Kinsella, 39-year-old Tracy Petrucelli of 69 Bunker Hill Road, New Boston, turned herself in to authorities.

Petrucelli worked as a certified public accountant for Manchester Mitsubishi, an automotive dealership co-owned by her brother Michael Petrucelli and another individual, Steven Debrosca.

She is suspected of deposting four counterfeit checks totaling more than $1.1 million to pay outstanding financial obligations facing the dealership; among these obligations was an amount just over $300,000 for vehicles that were sold “out-of trust.”

Kinsella informed the court that Manchester Mitsubishi had established a line of credit with Primus bank for the purchase of many of the cars that the dealership offered for sale.

As such, the line of credit with the bank was to be paid off as each of the “floor-planned” vehicles was sold. Problems arose when Primus audited the dealership and determined that 10 vehicles had been sold “out-of-trust,” and that the dealership owed the bank nearly $300,000.

“Unfortunately, automobile dealerships often abuse the agreements by concealing or failing to disclose the sale of ‘floor-planned’ vehicles,” said Kinsella. “This conduct is referred to as selling vehicles ‘out-of-trust.’

“Unfortunately, we receive a number of complaints about counterfeit checks,” he added. “There’s a burden to prove that the person knew it’s counterfeit. It’s exactly like dealing with counterfeit money.”

Kinsella also informed the court that Petrucelli agreed to stay on after the business was sold in October 2003 to “assist with the transition of ownership.”

It was between October and November of 2003 when Petrucelli was told by bank officials that 10 vehicles had been sold “out-of-trust.” Petrucelli did not deny that this was the case, and told Primus employee John Carolyn that she would send a payment for the full amount to the bank.

According to information provided by Kinsella, the sale of Manchester Mitsubishi was completed on Nov. 6, 2003. Between Nov. 10 and 20, 2003, four counterfeit checks totaling nearly $1.1 million were deposited into the dealership’s checking account.

As the case is pending in court, it is difficult to determine what sort of fine or prison term Petrucelli faces.

The maximum penalties for bank fraud include a prison term of 30 years, a fine of $1 million, or a fine equal to twice the gain of the defendant, or a fine twice the loss to the victims of the offense.

Petrucelli is scheduled to be sentenced by Judge Joseph A. DiClerico at U.S. District Court in Concord on Oct. 17.

Kinsella said the case is still under investigation by the FBI.