HYDE PARK – Authorities have concluded a five month investigation into the dealings of a Hyde Park man, who allegedly conducted a scam dealing with car purchases, defaulted loans and forged lien releases.

Ernest Canelli was charged with felonies of forgery, scheme to defraud, criminal possession of a weapon and grand larceny. Police said other charges may be forthcoming.

Canelli allegedly purchased motor vehicles from local dealers with loans and then default on them. Just before the vehicles, including a Formula boat, were to be repossessed by banks, he forged lien releases and would sell them to other people.  Police allege that in many cases, he profited receiving cash back from the equity that remained in the vehicle.

The victims were the local banks and individuals in the community, police said.

Search warrants were executed at Canelli’s business, Factory New Spas, and his Hyde Park home and computers as well as an unlicensed firearm were seized.

The investigation was conducted by State Police at Rhinebeck, Dutchess County District Attorney’s Office, State Department of Motor Vehicles and the US Secret Service.