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7/06/2005

Thune, Nelson & MetaBank Continued

A little more information is coming out now, check out PIADW, Clean Cut Kid, and Don't Worry About The Government. One of the interesting items revealed in the bankruptcy documents filed yesterday was that two different loan agreements where reached in October of 2004 when Thune was still on the Board of Directors of what would become MetaBank and Nelson was aware that the Iowa AG was investigating his business practices.

It seems that almost right away Nelson didn't live up to his part of the loan agreements and eventually filed bankruptcy.

Also sort of curious is the fact that it seems Dan Nelson is no longer an owner of Dan Nelson Automotive Group. He sold his 75% share to partner and fellow Thune cronie Chris Tapken for the princely sum of $50.

In the meantime SD Watch has not gotten a reply from Sen. Thune's office to his letter asking for comment on the situation. Very surprising don't you think.

Meanwhile, it seems that JD Byrider (the former name of Nelson's dealership) is also in trouble with the Kentucky AG as of December of 2004.

"Kentucky Attorney General Greg Stumbo today announced the filing of a Consumer Protection lawsuit against national used car dealership franchisor, J.D. Byrider, Inc. and the Louisville J.D. Byrider franchise owned by James Maguire. Both Maguire and his son, J. Marc Maguire, are named as defendants along with several corporations and limited liability companies (LLC’s) owned and controlled by the Maguires. The suit was filed today in Jefferson Circuit Court."

It also seems that this branch of the company got some special favors from friends in high places.

"Kentucky State Police say they are investigating whether the Louisville J.D. Byrider franchise may have given the former head of the attorney general's consumer affairs office in Louisville favorable deals on used cars, and whether he in turn went easy on complaints against the dealer."

What kind of "favorable deals" you ask?

"In one deal, state records show that on Oct. 12, 2000, Byrider gave Winlock a $6,995 trade-in credit on a 1991 Ford Taurus with 103,285 miles that had a trade-in value at the time of $1,375, according to the National Automobile Dealers Association.

In the most recent deal, Byrider on Dec. 15 gave Winlock a $5,000 trade-in credit on a 12-year-old pickup with 129,382 miles. That was $3,330 more than the truck's trade-in value listed by the National Automobile Dealers Association."

Nice! What where Winlocks duties in the AG office?

"As the head of the Louisville office, Winlock said in the May interview, he supervised investigators who responded to complaints against car dealers and sometimes talked with dealers himself."

I wonder if this kind of thing is in the franchisee handbook?

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