(Horicon) A Dodge County businessman was sentenced Wednesday on federal bank fraud charges, however the details of the penalty have been sealed by a judge’s order. Gary Bortz owned and operated Bortz’s Wild Goose Auto Sales, a used car dealership in Horicon that closed down in 2014. Bortz was involved in a scheme that investigators call the (quote) “double floor-plan.” That’s an illegal practice where a dealership obtains two lines of credit from two financial institutions by financing the same vehicles.
Bortz had a $400-thousand-dollar line of credit through American National Bank of Beaver Dam – now American Bank – using his inventory of vehicles as collateral for the loan. Without the banks knowledge, Bortz used that same inventory as collateral with the Automotive Finance Corporation to finance the $50-thousand-dollar purchase of more vehicles in 2004. That line of credit continued to be increased every couple year’s until it reached $300-thousand dollars in 2011. Investigators say it was a regular practice of the dealership to finance the same vehicles with both institutions simultaneously. In October of 2014, Bortz failed to make timely loan payments so Automotive Finance Corporation took possession of the vehicles being used as collateral. As a result, American National Bank lost the money that it had loaned to the dealership.
In 2016, Bortz was charged in a six-count federal indictment with executing a scheme to defraud. As part of an agreement reached in December, he pled guilty to one count. Bortz faced a maximum penalty of up to 30 years in prison and up to one-million dollars in fines. Court records indicate that the government recommended restitution to American National Bank totaling $386,950. At a hearing Wednesday, US District Court Judge Lynn Adelman granted the defendant’s motion to seal the final details of the sentencing.