A former local used-car salesman accused of defrauding Mercedes-Benz and local customers pleaded no contest this week to charges of writing a check with insufficient funds, a felony, and being an unlicensed auto dealer, a misdemeanor, according to the District Attorney’s Office.
Nachshon Margalit, 30, worked at the now-defunct Certified Cars lot on Broad Street in San Luis Obispo. He was accused of writing bad checks to Mercedez-Benz USA for nearly $43,000 in 2007.
Each check was part of a consignment transaction through Certified Cars, according to prosecutors.
Margalit was allegedly responsible for paying off a single loan to Mercedes-Benz. But the transaction hit a bump when the checks arrived to Mercedes-Benz with insufficient funds, according to the District Attorney's Office.
"Basically he sold the car, and the new guy thinks he's walking away with a clean bill of sale, and he represents to the old car owner that the deal is done, but Mercedes never gets their money," District Attorney's Office spokesman Jerret Gran said in 2009.
A no-contest plea results in a conviction without an admission of guilt.
Margalit is scheduled to be sentenced Oct. 4 in Judge Michael Duffy’s courtroom. He faces 60 days in County Jail and felony probation as part of the plea agreement.