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A DeKalb County court has ordered Auburn auctioneer Dean Kruse to pay more than $1.3 million to a Warsaw bank, one of several debtors to challenge Kruse’s business in recent months.
In a separate case this week, the financial arm of General Electric Corp. has asked a federal court judge to repossess Kruse’s 1985 Cessna jet, which had been insured at $3.5 million.
In the DeKalb County case, Lake City Bank said the classic-car auctioneer took out a loan for more than $4.5 million in 2005. That loan was due to be repaid by Aug. 31, 2008, according to court documents.
By July, nearly $1.2 million remained unpaid on the loan, which continued to accumulate interest of more than $223 a day, the lawsuit said. DeKalb Superior Court Judge Monte L. Brown ruled last week that Kruse must pay $34,325 in attorney fees, plus court costs and more than $1.2 million.
Kruse could not be reached for comment Friday, but he told The Journal Gazette last month that the recession has hurt his sales.
He fell behind on his bills when he released cars to longtime customers before receiving payment – a practice he has since suspended, he said.
Many sellers have sued Kruse for not being paid, and Kruse International’s Better Business Bureau rating is the lowest possible. In August, The Journal Gazette reported Kruse faced millions of dollars in debts from unpaid corporate credit card bills and personal and business loans, including the Lake City Bank lawsuit. The company’s license to operate in Arizona was suspended after complaints from sellers there.
Two foreclosure lawsuits in DeKalb County are pending. In one, Hillcrest Bank alleges Kruse, his wife, and his companies owe more than $6.5 million in unpaid loans. FCOF Midwest Credit LLC filed to foreclose its mortgage on Kruse Auction Park in May, saying the loan is in default for $7.8 million.
Last month, the city of Sevierville, Tenn., alleged in a lawsuit that Dean V. Kruse and Kruse International stuck the city with more than $12,000 in unpaid bills after a June auction.
Recently, several more civil lawsuits have been filed against Kruse in DeKalb County courts, including one in which Nixon Homes Inc. alleges Kruse entered into a contract in March to build a home in an Auburn subdivision.
Nixon Homes – like Kruse International, a family-owned business based in Auburn – claims Kruse backed out of the deal and owes the company $26,000 earnest money.
Rebecca S. Green of The Journal Gazette contributed to this story.
