VIRGINIA BEACH – A Norfolk police officer is accused of running an illegal car dealership from his Va. Beach home.

Authorities say Lt. Michael Barnaby rehabbed and sold cars.

"We knew he had cars and would turn them over and today's economy you make nickels and dimes where you can, we never thought that was a problem until one morning we saw a group of investigators here swarming the neighborhood," his friend Tom Flacks said.

A document from inspectors at the Department of Motor Vehicles shows they began looking at Barnaby after he came to city offices to sell six old squad cars.

Video: Norfolk policeman accused of selling cars without a license

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"He's sold cars in the past and it's ok to sell cars, but if you sell more than five in a 12-month period, you need a dealer’s license," explained Commonwealth’s Attorney Harvey Bryant.

Investigators say Barnaby lied on his application, saying his name was Henry Ford, the owner of a used car lot in Norfolk.

Barnaby faces five counts of forgery or alteration of an automobile registration and one count of failure to obtain a license as a motor vehicle salesperson.

If convicted on all charges, he faces a maximum of 26 years behind bars.

Barnady is on administrative leave from the Norfolk Police Department pending the outcome of the case.