Erik Brucker, former owner of Ducktown Dodge, has been indicted on three counts of bank fraud. Brucker appeared in U.S. District Court Aug. 6 and was released on $20,000 bond. Arraignment is scheduled for Sept. 4. An indictment is not a finding of guilt but an indication there is enough evidence to proceed to trail.

The federal Grand Jury charged that Brucker devised a scheme to defraud Sun Trust Bank from May 2001 through January 2002. He allegedly recruited a banker at Sun Trust to facilitate the approval of car loans to customers regardless of their credit worthiness in exchange for payments and the free use of vehicles provided by Ducktown Dodge.

Further, the Grand Jury charged, loan officer Baron Mayes ensured that car loans were made to Ducktown Dodge customers who were uncreditworthy, based on false income information provided to SunTrust. The Grand Jury noted that Mayes knew the information was fraudulent. The indictment lists three specific loans in the indictment – for $18,582, $20,794 and $14,531.

While he is out on bond, Brucker is to maintain or seek employment and report any contact with law enforcement personnel. He is not to incur any new lines of credit without express permission.

In March, Baron Mayes plead guilty to bank fraud by approving loans to customers of Ducktown Dodge without assuring their creditworthiness. He was sentenced in U.S. District Court last week to 24 months imprisonment followed by 3 years of supervised release, $100 special assessment and $131,813.72 restitution to Sun Trust.

In April, Albert Powell, the Finance Manager for Ducktown Dodge, was sentenced in federal court for his role in a scheme to defraud financial institutions. He was released on time served and is to be on probation for one year, plus a $2,000 fine and $100 special assessment.

The car dealership abruptly closed its doors in July 2006 after Bank of America called in its $4.6 million loan. The dealership had been indicted by a Polk County Grand Jury earlier in the year but those forgery charges were abated after the corporation ceased to exist. All assets were seized by Bank of America. The FBI confiscated the dealership’s financial records. Several civil cases were also filed in Circuit Court last year claiming loan fraud and “bait and switch” advertising tactics.