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The American businessman defrauded almost $280 million to fund a lifestyle that included over 250 classic cars.


An American businessman has been sentenced to eight years behind bars for defrauding US banks of $US180 million ($AU280 million) over eight years – and using the proceeds to build a collection of more than 250 classic cars.

As reported by AP, the court found 70-year-old Najeeb Khan used a process known as ‘cheque kiting’ – artificially inflating the amount of money in his bank accounts, and deceiving banks into honouring cheques from accounts with insufficient funds – to ‘earn’ $US180 million ($AU280 million) from 2011 and 2019.

Mr Khan reportedly used the funds to support a luxury lifestyle, as well as building a collection of more than 250 classic cars.

Known as the Elkhart Collection, the inventory included a 1969 Lamborghini Miura P400S, a 1955 Mercedes-Benz 300SL Gullwing, a 1967 Toyota 2000GT and a Dodge Viper V10-based Alfa Romeo TZ3 Stradale Zagato.

A total of 588 lots (cars, parts and memorabilia) went under the hammer but only raised $US44 million ($AU68 million) of the $US180 million total.

The most valuable car was a 1952 Ferrari 225S Berlinetta by Vignale that sold for $US2.8 million ($AU4.3 million), where the most affordable was a 1961 Hilman Minx Convertible that sold for $US3360 ($AU5160).

It took the court until this month to sentence Mr Khan, who pleaded guilty to all charges.

As well as jail time, he has been ordered to repay $US121 million ($AU185 million) to the bank at the centre of the fraud as well as $AU42 million to clients and $AU15 million in taxes.

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