Legal woes follow defunct Victory Lane Power Sports

Publish Date: 
Feb 29, 2012

A former powersports dealer has resigned a post he held as a village trustee in Swansea, Ill., because of the demands of his new job, but he’s also under fire for issues related to the dealership’s failure.

Former Victory Lane Power Sports GM David Freed resigned Monday from the post to which he was elected April 2011, after the dealership closed. He says an unfortunate experience dealing with My Auction Connection, formerly of Murfreesboro, Tenn., started a financial cascade effect that forced the dealership to close.

But customers who made payments to the dealership and did not receive their vehicles because of the closure have triggered investigations into the business. Swansea police investigated a complaint in November 2010 from a consumer who said he wrote a check for about $26,000 but never received a motorcycle, according to Police Chief Michael Arnold. The St. Clair County Sheriff's Department took over the investigation after Freed was elected to avoid any conflict of interest, and turned its findings over to the St. Clair County State's Attorney's Office for review, according to the Bellville News Democrat.

State's Attorney Brendan Kelly said "several matters involving Mr. Freed's former business are being investigated."

Freed agrees the consumers should be repaid, and he hopes to do that when lawsuits related to the closure are resolved.

In August 2010, Victory Lane reported to Swansea police that they sent $112,000 worth of motorcycles and ATVs to MAC for an auction, but never received payment for the merchandise. His insurance company wouldn’t cover the loss without a criminal conviction, so Victory Lane filed a lawsuit against the insurance company, Freed says. He expects that lawsuit to go to trial in the next six weeks. He also has a creditor claim in MAC’s bankruptcy.

"We had a relatively successful business for a number of years and then we had a number of things happen in the wrong time of year and affected the life of the business," Freed said. "We have to work through the channels that we have to solve through the problems that we have."

Posted by Holly Wagner

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