Ah, the joys of having a PACER account.

Here (nelson indictment.pdf) you can download in PDF, all 52 pages of the Redacted Indictment against Dan Nelson and Chris Tapken from the Dan Nelson Auto escapes.

It is very dense but interesting reading.

My initial take? They were doing in the car business to sub-prime consumers what the housing lenders were doing to sub-prime consumers, only worse.

So much greed during the Bush Administration. It’s money for Republicans and sex for Democrats.

You read it here first—Dan Nelson and Chris Tapken were indeed indicted in the Southern District of Iowa Federal Court today.

The Argus Leader has the details.  An excerpt:

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 bill of particulars is pretty long. They screwed a number of local banks. No comment so far on the indictments from Dan’s good friend Sen. John Thune, who served on the MetaBank board of directors during his time in the wilderness between his House and Senate gigs.

Dan Nelson Auto rears its ugly head again.

It appears that Dan Nelson and Chris Tapken may be indicted on criminal charges today in the Southern District of Iowa Federal District Court.

From my source:

Just a quick note to let you know that Dan Nelson & Chris Tapken were both indicted on federal charges in the Southern District of Iowa.  The USA hasn't announced this yet but I got an email from Dan's attorney at about 5:15 PM.    I asked him to send me a copy of the indictment ASAP!   I don't know precisely what the charges are, but I am reasonably certain they're related to Federal Bank Fraud and Mail Fraud.   I couldn't reach the AUSA on the case because it was after 5:00 PM, but I would assume they're preparing a press release for tomorrow. Matt Whitaker normally holds a press conference, so that may be the case tomorrow as well.

Developing...

Sen. John R. Thune: Depositions are not like being interviewed by the S.D. press. Enjoy!The Argus Leader reports this morning the filing of a federal lawsuit against Dan Nelson, et al, as I reported last night. 

An excerpt:

A group of former customers of bankrupt auto dealer Dan Nelson has filed a federal lawsuit alleging the Sioux Falls dealer and a bank that helped finance him knew they were profiting from illegal activity.

The lawsuit is the latest development in an ongoing legal conflict that stretches into state courts in Iowa and, if it were to make it to the trial stage, could drag U.S. Sen. John Thune of South Dakota to the witness stand.

Dan Nelson, former principal owner of Dan Nelson Automotive Group, obtained a series of loans from MetaBank, which is based in Storm Lake, Iowa.

Thune, a friend of Nelson, sat on MetaBank's board for nearly two years in 2003 and 2004.

My source gets a free dinner next time I see them!  If anyone can direct me to where I can find the lawsuit, let me know.

Definitely something that makes you want to go "hmmmm."  Anyone want to make book on how long it takes Sibby, The Voice of the S.D. Republican Party, to blame Tom Daschle and Chad Schuldt for all this?

A source who has been extremely reliable in the past on Dan Nelson Auto matters informs me that there may be a lawsuit filed in federal court against Dan Nelson, et al.  I did a search on PACER for the District of South Dakota and didn't see anything filed this month so far.  The source says that if it comes to fruition, the plaintiffs plan to call Sen. John Randolph Thune as a witness. 

I have not been formally contacted by any potential clients as of today to represent anyone against Dan Nelson, DNA, or any other related entity.  I come by this info not as a lawyer but as a blogger.

Now, my caveat as Todd the Litigator.  Lots of people threaten lawsuits.  Some even get filed.  A few more even get litigated.  Most settle at some stage of the litigation prior to trial.  Most that are left get decided at summary judgment.  Very, very few cases actually go to trial.  So, while this could be an interesting development (talk about  things that make you go "hmmm"!), I remain wary.  Still, think of the possibilities!

I'll keep you posted should I hear more on this. And if you know something, let me know.

 

The Rapid City Journal has an update today on the legal battles Dan Nelson Auto is facing across South Dakota.  This is one big honking legal action.  An excerpt:
The former Dan Nelson Isuzu dealership in Sioux Falls.

 I'm still waiting for Sen. John Thune to acknowledge his tight friendship with Dan and fully explain his role as a Metabank board member in its loans to DNA.