Two former employees of a now-closed West Ashley automobile dealership have pleaded guilty in federal court to falsifying loan documents that were submitted to finance companies so buyers could be approved for loans they otherwise didn't qualify for.

Shawn Rustin and Kentrell Davis, who worked at Hoover Mitsubishi at 2550 Savannah Highway, pleaded guilty on July 28 to one felony charge apiece of conspiracy to commit wire fraud, bank fraud and providing false statements to a financial institution.

They will be sentenced at a later date in federal court in Charleston.

The charges carry a maximum five-year prison term, but prosecutors have agreed to seek a lighter sentence because the men cooperated in the investigation.

According to court documents, Rustin was the general sales manager and Davis was finance manager when the incidents took place from at least January 2016 to 2018. An affidavit for a search warrant indicates the practice dated to at least 2012.

The scheme involved creating two sales documents — a fraudulent contract submitted to lenders and an accurate one kept in Hoover's files, according to court documents. The bogus paperwork included false statements that made it appear as if customers were more creditworthy than they really were. The fraudulent contracts also listed false down payments and fictitious vehicle trade-ins.

Rustin also falsified bank statements, paycheck stubs, proof of residency, utility bills and other documents "with the purpose of influencing financial institutions" to give loans to buyers who were more likely to default or fall behind on payments.

Both employees were fired from the dealership in 2018. FBI agents raided the business the following year, seizing computers, financial records and vehicle loan applications.

According to an affidavit filed for a search warrant, at least two banks caught on to the scheme. In 2015, BB&T — now Truist — checked on a loan for a Mitsubishi Outlander and found out the pay stub that was submitted was incorrect. PNC Bank discovered another example in 2016 after a car buyer reported the dealership doubled his income level on the loan application.