Auction of exotic autos seized as part of a Ponzi scheme can proceed, judge rules

SALT LAKE CITY — A federal magistrate has ruled that the auction of about 210 cars, motorcycles and boats worth an estimated $6 million seized as part of an alleged Ponzi scheme can go forward.

The collection, which includes a 1925 Ford Model T Speedster, a 1956 Austin Healey convertible, a 1970 Pontiac GTO, a 1971 De Tomaso Pantera GTS coupe and many more, was seized in January by the FBI from Jeffrey Lane Mowen, who is accused of buying the machines with money gained from a bogus investment scheme. The collection will now be auctioned off April 1 at 10 a.m.

Mowen, 47, of Lindon, faces charges of wire fraud and other counts. Officials say he represented himself as a successful trader in foreign currency, swindled investors out of about $18 million and tried to persuade a prison inmate to kill his investors to prevent them from testifying against him.

Prosecutors say Mowen used the vehicles in question to perpetuate the fraud. The first auction had been scheduled for the end of January, but was postponed after Mowen filed an objection, saying the court had failed to comply with the agreed-upon procedure. The government was required to provide Mowen with the appraised values and allow him to pose any objections.

U.S. Magistrate Judge Paul Warner wrote in the order that the government provided the appraisals and Mowen did outline objections, but he found them to be "without merit."

"Instead of submitting such specific objections, defendant's written submission consists of rambling, conclusory, and overly broad objections," Warner wrote. "Furthermore, to the extent defendant has identified any specific vehicles, he provides only speculative arguments about vehicle values and generalized criticisms of the government's appraisals."

Previews on the collection will be held March 29-31 from 10 a.m. to 4 p.m. at 160 N. 400 West in North Salt Lake. Admission to the previews is $5, with tickets to the auction available for $20. Children are not allowed at either event.

A trial in Mowen's case is set for August.

In October, prosecutors persuaded U.S. District Judge Dee Benson that the high cost of storing the vehicles, the "voluminous" evidence they said they have against Mowen and a delay in moving the case to trial warranted selling the collection before the case was adjudicated.

e-mail: emorgan@desnews.com