Heartland, Inc.(fka HTLJ)

[reaper247]

Follow-up post.

http://www.middlesborodailynews.com/view/full_story/22871764/article-Owner-opens-up-about-alleged-Lee-Motors-scandal?

"Anthony Cloud

Staff Writer

Terry Lee, owner of Lee Motors, says he nor any other of the Lee Motors employees had anything to do with the recent alleged scandal at the business.

Recently, several criminal and civil complaints were filed against former general manager James Steven Bailey and former bookkeeper Mildred Campbell.

“Lee Motors and myself, we’re victims in this just like anybody else,” said Lee.

Lee claims he did not find out there were any problems until mid April.

It was during that time Lee was made aware by Home Federal Bank of a problem with the floor plan at Lee Motors. He said the bank notified him that there were some cars missing from the lot that should still be there. He said that was the first indication there was a problem.

“I thought it was a floor plan issue where they sold cars and didn’t pay Home Federal (Bank) off,” said Lee. “I didn’t realize there were other people involved and money (allegedly) being taken for cars that we had nothing to do with.”

According to Lee, it took 45 days to find the general information about what was going on.

“It was Lee Motors that contacted the authorities,” said Lee. He said they called the county attorney’s office and got involved with Kentucky State Police.

“We want to get to the bottom of it as much as anybody does,” said Lee. “It’s wrong. There have been a lot of people hurt.”

Lee said he is working with the banks, insurance company and authorities. He said the alleged incidents have left him in bad financial shape, causing him to sell the business.

KSP Det. Bryan Johnson said he believes Lee didn’t have anything to do with the alleged scandal. He said records indicate Bailey was falsifying reports to Lee to make it appear the business was doing good.

Johnson said he went to Bailey’s home early in the investigation. It was at that time Bailey said the business was not selling cars and the economy had declined. According to Johnson, Bailey said he did what was needed to keep from closing the doors on the business.

Johnson said Bailey said he thought business would pick up after a few months and he would be able to fix it. Johnson has not spoken with Campbell.

Bailey and Campbell both have warrants on them.

“It would have been easier to have let the business close in 2009 and taken the money General Motors was offering to just go ahead and close,” said Lee.

Lee said the business was scheduled to close in 2009 when General Motors went bankrupt. After being closed for six months, Lee spent hundreds of thousands of dollars to save the dealership and jobs, he said.

Lee said until April he thought Lee Motors was in good financial shape because all the information he was given looked perfect. He admits he now knows the information he was given was a lie. He said as a owner, he was dependant on the info given to him by those in charge at the store.

Lee said he never received any complaints from customers about the issues that were taking place.

“You would have thought someone would have picked up the phone and called me, but it never happened,” said Lee.

Johnson said Lee has been summoned to appear in court because he was the owner of the business.

Johnson said anyone having a similar problem with any car dealership in Bell County should contact the Kentucky State Police in Harlan at 606-573-3131.

Reach Anthony Cloud at 606-248-1010, ext. 208, [e-mail]"

IMO and FWIW.