Stellantis, the automaker behind brands like Jeep and Dodge, has filed a federal lawsuit accusing an Iowa dealership group called Sky Auto Mall of running a scheme that, according to the complaint, involved roughly $12 million in allegedly fraudulent duplicate floorplan loans on the same vehicles. The case, filed in U.S. District Court in Des Moines, centers on allegations that the dealership’s operators collateralized inventory across multiple lots while prior financing obligations remained outstanding. The dispute raises pointed questions about how quickly expanding dealer networks can exploit gaps in lender oversight, particularly in smaller rural markets.
How Sky Auto Mall Expanded Into Newhall
The timeline of Sky Auto Mall’s growth is central to understanding the alleged fraud. Yelena and Alex Tovstanovsky, the principals behind Sky Auto Mall, acquired two dealerships in Newhall, Iowa, according to a brokerage announcement detailing the transaction. The stores, formerly Van Horn Ford and Van Horn Chevrolet, gave the Tovstanovsky family control of multiple rooftops in Newhall.
That multi-lot presence is precisely what Stellantis claims enabled the alleged scheme. Operating dealerships in more than one location creates the logistical conditions for moving vehicles between sites, a practice that can make it difficult for lenders to verify whether specific units are still on a given lot. When a single vehicle can appear on the books of two different locations, each drawing a separate floorplan loan against the same asset, the financial exposure multiplies quickly.
The Newhall acquisition involved Ford and Chevrolet franchises, according to the brokerage announcement. Rapid expansion through acquisition is common in the U.S. auto retail sector, but the speed at which new owners integrate financing, inventory tracking, and compliance systems varies widely. Stellantis alleges that the Tovstanovsky family exploited these transitional gaps rather than closing them, using the reshuffling of inventory and paperwork to conceal overlapping liens.
The Mechanics of Duplicate Floorplan Fraud
Floorplan lending is the financial backbone of nearly every new-car dealership in the United States. A lender, often a captive finance arm or a bank, advances money to the dealer to purchase inventory from the manufacturer. Each vehicle on the lot serves as collateral for its individual loan. When a car sells, the dealer is supposed to repay the corresponding loan immediately, a process often monitored through regular curtailment schedules and audits…