Professional Carwashing & Detailing

Owner nets $3.5 million from loan, mortgage fraud

March 13, 2012

CHANDLER, AZ — Joseph N. Gagliano, 43, owner of several carwashes here is accused of fraudulently obtaining $3.5 million in small business loans and of mortgage fraud, The Republic reported.

The March 9 story stated that Gagliano pleaded not guilty to the federal charges including bank fraud, wire fraud and false loan and credit applications.

The indictment states that Gagliano sought Small Business Administration loans for Fast Lane Car Wash, LLC and Fast Lane Auto Spa using his father’s name and misrepresenting his father’s ownership interests in the washes.

Also, Gagliano falsely represented his father when applying for loans and loan modifications for two homes.

A jury trial will begin in May, and there is a maximum penalty of 30 years for each count.