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.