Salvage Fraud Costly
15 November 2018 News
Fond du Lac County District Attorney Eric Toney says it’s unfortunate that 50 people who work for two salvage dealers will be out of job because the owner defrauded another business . The state ordered Gibson Iron Metal and Auto in Neenah and Fox Valley Iron Metal & Auto Salvage in Oshkosh to be shut down due to the fraudulent activities of its owner Sterling Kienbaum. In August he was sentenced to 8 years in prison and 3 years of extended supervision. He prepaid $6 million in restitution to Sadoff Iron & Metal in Fond du Lac, which he defrauded. Toney says that type of fraud shakes a business’s trust in its customers. “You know businesses like to be able to trust their customers and so it erodes that trust and it has a significant impact on a business, I mean $6 million is a whole heck of a lot of money.” Toney says Kienbaum’s two businesses were sound and doing fine, but his actions will lead to the loss of jobs for his employees. The fraud involved packing junked vehicles with sand or dirt before they were weighed at Sadoff’s and Sadoff’s paid for them.
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