KEY POINTS:
An American motorcycle builder who accepted cash from New Zealand customers shortly before he filed for bankruptcy is to be prosecuted for fraud involving nearly US$1 million ($1.42 million).
A bankruptcy hearing in Illinois for a business specialising in customising "chopper" motorbikes was extended in 2005 when a lawyer for New Zealand creditors sought more time to present their claims.
The unnamed New Zealanders were among a total of nearly 40 customers who said they paid Mid-West Choppers and its owner, Chip Miyler, US$1.2 million for customised bikes but did not receive them before it went bankrupt in October 2005.
The Peoria Journal-Star reported today that Miyler, 40, faces nine counts of fraud in US District Court in Peoria for allegedly receiving large deposits for custom motorcycles between 2003 and 2005, keeping the money and then filing for bankruptcy shortly afterward.
The indictment says Miyler defrauded 25 of his customers out of about US$900,000. Miyler also applied for a bank loan but offered as collateral motorcycles he did not own.
The New Zealanders' lawyer Sumner Bourne said former customers of the firm would be happy to find out about the indictment.
"I look forward to letting them know what's going on," Mr Bourne said.
Some customers could receive partial refund checks from the bankruptcy in about six weeks, he said.
- NZPA
