On Your Side Investigation: Motorcycle business owner sued for fraud opens new shop

You might remember more than one year ago, the doors suddenly closed at Midwest Cycle Center in Ozark behind Lambert's.

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There are still customers who can't hit the open road with their ride.

"This is a 2004 Road King," said David Lane. Lane is a Harley guy.

"I like the sound. The nostalgia. The lifestyle that comes with it. I kinda banged up my back in Iraq. So for longer trips, I felt a touring bike would have better suspension. Be a better ride," he said.

His bike is on a trailer because he can't legally drive it. He doesn't have the title.

"It's three and a half years now and I've never received any paper or anything like that," he said.

Same goes for Casey Morris and his Harley.

"No. I never did get anything, no paper whatsoever from them. They were supposed to mail me the paperwork and the title," said Morris.

In a Facebook message, the former owner, Nathan Powers, told Lee he would help find his title. The exchange was in November.

"I haven't heard anything since. My down payment was cash. Which might have been a mistake, but at the time, I figured they were a legitimate business and there wasn't going to be any issues," said Lane.

Now there's a class action lawsuit for hundreds customers against BluCurrent. Which is the Springfield credit union Powers used to finance his businesses and some of his customers' motorcycles. Powers along with his businesses, Midwest Cycle Center, Pro Action Auto and Powersports Protection are also defendants in case. Court documents read, Midwest Cycle sold motorcycles with no titles. Powers engaged in deceptive, unfair practices and fraud. On Your Side has repeatedly asked Powers for an interview. His attorney talked.

"He does not believe he is to blame," said Joshua Roberts, an attorney representing Powers and his businesses.

Powers blames BluCurrent for what happened.

"Mr. Powers is working through this case the best that he can. He understands there are some customers who did not get what they thought they were going to get and he's very sorry for that. That was never his intention. He wants every single one of his customers to get what they paid for. That's always been his intention. However, certain things happened. Accounts were seized. His businesses were forced to close. So he couldn't fulfill those promises," said Roberts.

That day in court, the judge granted BluCurrent's request for a temporary restraining order against Powers. The order demands he stop making false statements and take down a website he made with the bank's logo.

"If the court issues an order, we will definitely follow it," said Roberts.

The website no longer exists.

"He has also agreed some of those comments are unnecessarily inflammatory and has removed them," added Roberts.

Nathan Powers now works at Legends Cycle on South Campbell. His Facebook profile says he's a salesman and owner.

The L.L.C. for Legends Cycle, the Greene County Merchant License application and the Dealer License from the Department of Motor Vehicles lists Mary Powers, his wife, as the owner.

"I'm not involved with anything that he is doing now going forward so I can't speak to that right now," said Roberts.

"I think it's a slap in the face to people here in town. It's like he got away with it and he's going to just continue to do it. It makes me wonder if he thinks the people in town are dumb," said Lane.

"He is going to end up screwing people over like he did before," said Morris.

Morris and Lane, do not fit into this 1.5 million dollar lawsuit because they both had a different lender.

Meanwhile, the checks are in the mail for the settlement. BluCurrent will refund those without titles plus a damage award. Customers with service contracts and GAP coverage will also get some money back. Those with loans, can get a lower interest rate. The credit union issued On Your Side a statement citing harm was done by Midwest Cycle.

BluCurrent statement:

Over the past weeks, multiple false allegations have been made about BluCurrent and its relationship with Midwest Cycle Center. BluCurrent is grateful to the Greene County Circuit Court for granting an order on 1/17/19 that prohibits this wrongful conduct and looks forward to resolving this matter through the judicial process.

Background Provided by BluCurrent

In March of 2017, Midwest Cycle Center and its inter-related businesses dealing in automobiles, motorcycles, GAP coverage (guaranteed asset protection in the event of accident or theft) and service contracts abruptly closed without notification to its customers. The closed businesses left some customers without titles to their vehicles, loss of GAP coverage, and voided service contracts for many other customers.

Like financial institutions across the country, BluCurrent has an Indirect Lending Program. Through that program, BluCurrent provided financing for some of Midwest Cycle Center's customers. As soon as BluCurrent learned of Midwest's sudden closure, it began working with its members to mitigate the harm done to them by Midwest.