GREEN BAY, WI (WTAQ-WLUK) – Former car dealer John Solberg was sentenced Thursday to two years, six months in federal prison for defrauding customers.
Solberg previously pleaded guilty to a count of mail fraud. Fourteen other counts were dismissed. He will also serve three years on supervised release. Restitution was set at $290,451.57, some of which has already been paid.
Solberg operated dealerships under the names: Standard PreOwned, Backwoods Bargains, Suamico Investment Group, and Bella Investments, LLC. In documented complaints, car owners say Standard PreOwned sold their used vehicles for them, but the owners were never paid.
After his conviction, Solberg’s attorney, Mark Richards, provided this statement: “My client, John Solberg took responsibility for actions occurring nearly seven years ago. He resolved all criminal charges against him. This plea agreement makes all of the named victims whole through repayment of their losses. There has been enough money deposited at the federal clerk of courts and my trust account to fully compensate the named victims. Mr. Solberg has worked for nearly seven years to repay these debts.”
Prosecutors describes the fraud in this way:
“Customers gave their vehicles to the aforementioned businesses on a consignment basis. Many of the vehicle transactions were conducted appropriately whereby the proceeds were transmitted to the customer pursuant to the terms of the consignment contract. However, multiple consignors, whose vehicles were sold did not. On those occasions funds from the sales were used for other purpose which were not authorized by the consignment contract.
The defendant and other associated with the business used the internet, text messaging and the U.S. Mail to engage in the following conduct in furtherance of the scheme: On several occasions, he or his representative would fail to tell the customer that their auto had been sold. Those customers did not receive funds from the sales. On several occasions, after the vehicle was sold, the defendant provided the customer with a promissory note agreeing to pay the already due funds, plus interest. On several occasions the defendant or his representative provided the customer with ‘insufficient funds’ checks for the proceeds of the vehicle. On several occasions the defendant and or his representative gave assurances to customers that the proceeds of their vehicle sale would be delayed. On several occasions the defendant and or his representative sold a customer’s car for less than the price authorized in the consignment contract.
Subsequent purchasers obtained bank or other financial institution loans to purchase the consignment vehicles which the defendant sold and for which the defendant did not have legal title.”
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