MN Auto Restorer Allegedly Defrauded Customers of $1M
Edwin Scott Verdung, a 26-year-old who now resides in Michigan, was charged Tuesday with defrauding customers of Chisholm-based Memory Lane Classics, a classic auto restoration company, out of more than $1 million.
Verdung was charged in federal court on one count of wire fraud and one count of transaction money laundering, Minnesota’s U.S. Attorney’s office said.
From April 2007 through May 2010, Verdung allegedly took money from Memory Lane customers who were in the market for classic cars or who brought their own cars into the shop to be restored or rebuilt. Despite accepting the money, Verdung allegedly provided none of the restoration services he claimed.
In some cases, Verdung requested additional “progress” payments from his customers, after providing them with fake photos as evidence that he had made progress in restoring their cars, when in fact he had made none, according to the U.S. Attorney’s office.
If convicted, Verdung faces a maximum penalty of 20 years in federal prison for the wire fraud count and 10 years for transaction money laundering.