Carmean Dodge owner behind bars

While former El Dorado County car dealer Larry Carmean remains behind bars, his former associate is out on bail.Carmean, 61, who most recently operated Carmean Dodge in Shingle Springs and El Dorado Hills Dodge until late 2008, is being held on $5 million bail. He's been charged with several felonies including money laundering. He was arrested Jan. 26 in Orangevale.Carmean's Sacramento attorney, Richard Dudek, did not return calls for comment as of press time.Former general manager John Catalano, 38, was arrested in Folsom. Both have been charged with multiple counts of grand theft and embezzlement resulting in losses of up to $1.3 million to several customers of the dealership and various financial institutions, according to investigators.Catalano had been held on $2 million bail. It was reduced to $130,000, according to prosecutor Richard Jones with the El Dorado County Deputy District Attorney's Office. No reason for the reduced bail was given.Don Heller, Catalano's Sacramento attorney, said his client is completely innocent of all charges and has "been through the ringer.""My client is not responsible and has no prior record," Heller said Thursday. "He's one of those rare clients who is completely innocent of the charges."He said that his client did not participate in a single fraudulent act.Carmean's arrest was the result of an 18-month long investigation by the El Dorado County District Attorney's Office, the DMV and the Department of Insurance.During the months of May 2008 through July 2008, Carmean, the sole proprietor of the dealership Carmean Dodge, is alleged to have acquired and sold numerous vehicles, engaging in theft and embezzlement prior to the abandonment of his business location.The investigation revealed Carmean Dodge allegedly defrauded Chrysler Financial for $1.6 million in new car inventory, $750,000 in used car inventory, and $132,000 in used car inventory to AFC Financial, according to officials.A pre-preliminary hearing is scheduled for April 12 in Dept. 7 of El Dorado County Superior Court.