Nebraska Car Dealer Involved in Multimillion-Dollar Fraud
FREMONT – November 20, 2018
A former auto dealer from the quiet and distant town of Fremont, Nebraska has been indicted in federal court on 13 counts of wire fraud after local prosecutors stated he had lied to financial institutions, costing them more than $3 million.
Jason Siemer previously owned one of the town’s biggest car dealerships, Siemer Auto Center (now defunct). At first glance, everything seemed legal, as Siemer operated his company by bidding on vehicles at auctions with funds from short-term lending, and after reselling the used vehicles, he would pay off the loans with the proceeds. Yet, the prosecutors say that instead, he used the credit lines for personal enrichment and to purchase cars for himself or significant others, which is a serious violation of trade laws.
Siemer obtained his loans from Eide Wholesale, Automotive Capital Services, Westlake Flooring Co., and the United Republic Bank in Omaha. The indictment says that in order to obtain lines of credit from ACS, Westlake and URB, the owner of the business created false financial statements that failed to include his line of credit from Eide. If these companies had known about Siemer’s existing liabilities, they likely would not have provided him with the funds that they did.
According to another statement from the indictment, Siemer has also frequently received loans from multiple lenders for the alleged purchase of the same vehicle. Often, the same vehicle was paid for by two or three lenders, which is direct fraud.
For example, back in July 2016, Siemer borrowed $26,200 from URB to purchase a 2013 Cadillac XTS. Five days later, according to court documents, he borrowed the same amount from Eide to buy the same car.
After the scheme was revealed, Siemer is now facing at least 13 counts of wire fraud, each carrying a maximum sentence of 20 years. Siemer is also facing two counts of making false statements on loan applications, which carry a maximum sentence of 30 years.
And, of course, there is one count of money laundering in connection with a Corvette that prosecutors say he purchased with money that belonged to lenders, and this charge carries a maximum sentence of 10 years. So, in fact, Siemer could easily end his days in prison. An initial hearing in the case is scheduled for early December.