GREEN BAY, WI (WTAQ-WLUK) — A former Suamico and Kaukauna car dealer has agreed to plea guilty to mail fraud, and is expected to be convicted Friday afternoon.
John Solberg faces 15 charges of conspiracy to commit mail, wire and bank fraud. 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.
Prosecutors describe 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 occasion 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.
According to a court document obtained by FOX 11, Solberg agreed to plead guilty to one count of mail fraud. It carries a maximum penalty of 20 years in prison and a $250,000 fine. Solberg has agreed to pay $150,000 in restitution before sentencing, though the court could set a different final amount.
If the plea is accepted at Friday’s hearing, a sentencing date will likely be scheduled.
