Dec.30, 2009, 9:30:02 AM, From:Post-Bulletin.com

An Elkton man has been charged in U.S. District Court with three counts of wire fraud for allegedly trying to defraud two banks in the region.

Fred M. Engelhart was charged in November. The two banks are Farmers State Bank in Elkton and Rushford State Bank of Rushford.

Engelhart has also been charged with money laundering, bank fraud and possession of a short-barreled shotgun. According to court documents, a change of plea hearing has been set for Jan. 6. The actions took place from 2004 to 2007.

The complaint alleges Engelhart "solicited money on the pretense the money would be invested in collector vehicles." He allegedly didn't pay the owners or sellers and instead used the money to buy real estate or pay his own debts. He allegedly used interstate wires in the fraud.

The money laundering charge stems from him allegedly engaging in monetary transactions using money derived from a criminal activity. He allegedly used the Elkton bank to get loans through Engelhart Performance, submitting erroneous financial statements that greatly understated his liabilities.

A spokesman for the bank said he couldn't comment because of privacy issues.

The bank fraud charge is connected with the Rushford bank, where Engelhart allegedly got a loan secured by the collectible cars; the bank later learned he didn't own them. When he liquidated the inventory, he didn't pay the bank, the complaint says.

However, Ted Roberton, a bank owner, said the bank didn't lose any money. On the advice of legal counsel, the bank took measures to make sure it didn't lose money, he said.

The gun charge alleges Engelhart had a small-gauge shotgun with a barrel shorter than 18 inches and not registered with the National Firearms Registration and Transfer Record.

The government is asking the court to have Engelhart forfeit property derived from violations. If it can't get that property, it will seek substitute property, the complaint states.