WHITE PLAINS, N.Y. -

New York authorities recently indicted a pair of former managers at an Empire State Hyundai dealership, alleging they defrauded the franchised store and JPMorgan Chase of more than $1.5 million.

Westchester County District Attorney Anthony Scarpino Jr. announced that James Castellano of Valley Stream, N.Y., and Israel Viloria of New Rochelle, N.Y., were indicted and arraigned on charges stemming from a fraudulent auto crimes scheme involving a New Rochelle, N.Y., dealership.

According to a news release, both Castellano and Viloria were charged with the following three counts:

— Two counts of grand larceny in the second degree, a class C felony

— One count of a scheme to defraud in the first degree, a class E felony

Castellano alone also was charged with:

— 20 counts of falsifying business records in the first degree, a class E felony

— One count of grand larceny in the second degree, a class C felony

— One count of criminal tax fraud in the third degree, a class D felony (under New York Tax Law)

Authorities recapped that Castellano was employed as the office manager and Viloria was employed as the used-car manager for New Rochelle Hyundai.

The indictment alleges, from approximately Sept. 28, 2016 through July 14, 2017, the two men were engaged in a scheme to defraud JPMorgan Chase out of more than $700,000 and New Rochelle Hyundai out of more than $500,000.

As part of their scheme, they illegally sold vehicles owned by New Rochelle Hyundai through Global Auto Sales, a dealership owned in part by Viloria, and kept the proceeds of these sales.

Officials said Castellano and Viloria perpetrated this scheme by listing, in New Rochelle Hyundai’s records, details of vehicle that were not owned by the Hyundai dealer. By doing so, the dealership’s bank, JPMorgan Chase, made business funds available for the purchase of these vehicles. That cash flow into New Rochelle Hyundai accounts helped to cover up the actual theft of vehicles that Viloria and Castellano were selling on the side, according to New York authorities.

In addition, the district attorney charged Castellano with stealing approximately $300,000 by depositing checks made payable to New Rochelle Hyundai into his personal bank account. These checks were supposed to have been received by New Rochelle Hyundai for the sale of vehicles owned by the dealership.

Officials added Castellano also failed to pay taxes on this money for tax year 2017.

The case is being prosecuted by the Economic Crimes Bureau of the Westchester County District Attorney’s Office.