Benzie County Banks and Auto Dealers in Court Feuding Over Fraud - Northern Michigan's News Leader

A Benzie County auto dealer and several banks were in court over allegations of fraud.

Detectives say about 70 vehicles could be involved in the case and are still trying to determine the exact number of victims.

On Tuesday, the attorneys involved reached an agreement to hold the vehicles until the case is sorted out.

The banks accuse Platte Valley Auto Sales of defrauding them through a process known as double flooring. 

Dealerships take loans out on the cars on their lot called a "floor plan" and pay interest to the banks. Platte Valley Auto Sales is accused of receiving money from multiple lenders on the same asset including some vehicles being sold on consignment.

Detectives from the Benzie County Police Department were notified a few days ago from people who recently purchased a car from the lot and cannot get their title and plates because of a court order freezing the assets.

The lenders named in the case are Honor Bank, First Choice Financial, and Dealership Services Corporation.

Attorneys also reached an agreement in court which says if someone has a vehicle on the lot and can prove ownership, and no lenders claim rights to the car, they will be able to get it back.

The former owner of the dealership, who had co-signed the loans for the current owner, says he had no knowledge anything was going on.

No criminal charges have been brought against the current owners at this time.

9 and 10's Kyle Mitchell and Photojournalist Joel Deaner have more on the investigation.