From the Argus Leader

A lengthy indictment filed Wednesday in an Iowa federal court accuses the politically connected ex-car dealer Dan Nelson and business partner Chris Tapken of defrauding several banks, causing an estimated $21 million in losses.

The 28-count indictment alleges Nelson and Tapken routinely created false reports, which gave MetaBank and other participating banks undue confidence in the health of their subprime car loan businesses.The conspiracy began in 1997 when Nelson and Dan Paulson — who is not named as a defendant — submitted fraudulent reports to MetaBank, the complaint states; Tapken later joined the conspiracy.Specifically, the indictment alleges Nelson and Tapken:- altered due dates of car loan contracts and created look alike reports, which misrepresented the number of delinquent buyers;- lied about the amount of money they were getting from car buyers depending on how much money they wanted to borrow;- double pledged its vehicle inventory to secure various loans;- lied about following the JD Byrider business model;- approved subprime auto loans in which the value of the vehicle was far less than its total cost;- claimed they collected a down payment when they did not;- sold mechanically unsound vehicles;- sold warranties at a substantially inflated cost, then failed to honor them;- damaged customers’ credit after offering them a program they said would improve their credit;- encouraged customers to buy cars they could not afford;- and hid from lenders a civil investigation by the Iowa Attorney General.According to the indictment, MetaBank had loaned the businesses more than $30 million by the time the business collapsed in 2005.“As a result of the fraudulent actions and omissions of defendants Daniel A. Nelson and Christian J. Tapken ... MetaBank and the participant banks lost an estimated $21 million,” according to the indictment.Those participating banks include Sioux Falls banks First Midwest, First Premier, Home Federal and First American Bank and Trust.Nelson and Tapken are charged with one count of conspiracy to commit bank fraud, 11 counts of bank fraud, 13 counts of wire fraud and three counts of mail fraud.

A Long Three Years

I'm hoping to get linked up with some of my 'blogger friends' from South Dakota. The blogging community up there is pretty incredible. It was my distinct pleasure to play a small part in their blogging in 2005-2006 when the Dan Nelson case was just breaking. The mostly male bloggers up there were beyond gracious to me. Those guys are a force to be reckoned with. Some are liberal Democrats, some are conservative Republicans, some are in the middle Independents which at times makes for some hair-raising blog posts. I look forward to keeping everyone informed on the Dan Nelson case with today's indictment being the first step. Just thinking about all the time I spent in South Dakota in 2005-2006 makes me miss the place and the wonderful people I met along the way. I almost moved there for God's sake. I am expecting a formal announcement of Dan and Chris' Indictments from US Attorney Matt Whitaker tomorrow(Thursday) along with a press conference of some kind. I'll update here as things change.

The Indictment

Today November 19 2008, Dan Nelson and Christopher Tapken were indicted in the Southern District of Iowa. As a Consumer Advocate I am intimately familiar with this case the United States has brought against the former used car dealer and his partner. The case was first filed by the Iowa Attorney General, however the AG's action was civil and it was filed in Polk County District Court. Following the AG's basically dropping the ball, I felt it was imperative that I take drastic action to make sure that this case wasn't dropped. I'd like to thank the Honorable Judge Irvin Hoyt, former Chief Judge in the United States Bankruptcy Court, South Dakota for listening to the words of a lowly Consumer Advocate from Iowa on so many occasions. Judge Hoyt took my filings in the Defendants Bankruptcy case(s) seriously to the point of bringing them to the attention of the United States which got things rolling. I do remain concerned that there are parties MORE GUILTY than Dan Nelson and Chris Tapken who weren't indicted today, but I'm not giving up hope for their indictments to occur in the near future.