'Burnout King' facing fraud charges related to bankruptcy

Publish Date: 
Aug 6, 2012

 

PORT HURON, Mich. – “Burnout King” Nikki Lee is in custody on fraud allegations related to his personal bankruptcy.

Lee, 49, who also goes by Nick Lee, was arrested in Port Huron, Mich., last week after he crossed over from Canada. He was indicted in Milwaukee in June on charges that could result in decades in prison if he is convicted, according to the Milwaukee Journal-Sentinel.

Lee is one of the riders on the World Burnout Tour that’s a staple at many rallies. He is also a gun dealer.

According to the indictment, Lee lied on a home equity loan of $270,000 in 2007, claiming he was making $24,000 a month. In 2007 and 2008, he bought five Harley-Davidson motorcycles and a trailer. Right after making the purchases, Lee filed for bankruptcy in federal court in Milwaukee, according to the indictment.

Lee, whose former name was James Wellens, was a gun dealer authorized to deal in fully automatic machine guns as a National Firearms Act Class III dealer. During the bankruptcy, he falsely reported he had sold the gun business, according to the indictment. He also failed to disclose that he owned 13 motorcycles, two trailers, two boats, a motor home and a car.

In a hearing after Lee was arrested, a federal judge in Michigan agreed to set him free on a property bond. However, the U.S. Attorney's Office in Milwaukee took the matter that decision and ordered Lee detained. No date has been set for his appearance in Milwaukee.

Posted by Holly Wagner