Wednesday, October 26, 2005

Plymouth man charged in NASCAR case

Posing as agent, he cheated others out of $285,000 over 6 months in 2002, grand jury says.

By David Shepardson / The Detroit News

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DETROIT -- A federal grand jury indicted a Plymouth businessman on charges that he defrauded the owner of a NASCAR racing team, several air charter companies and a credit union.

Franklin Ray, who opened Marlin Transport Inc. and MNR Productions, was named in a six-count felony indictment handed up Friday.

He is charged with defrauding at least $285,000 from several charter companies and from Anthony Morgenthau, a Florida businessman who co-owns BAM Racing, which sponsors a Nextel Cup team.

Ray allegedly posed as an agent for NASCAR and several country music performers.

He is charged with bank fraud, four counts of wire fraud and interstate transportation of stolen property.

Between July 2002 and December 2002, Ray allegedly agreed to co-sponsor NASCAR races and "to coordinate country and rock concerts to coincide with the weekend of races."

Ray "entered into agreements with numerous companies to charter flights, helicopter and limousine services for clients purportedly sponsored by (Ray.)" He also received money and free travel from the companies based upon misrepresentations, the indictment said.

The indictment also charges that Ray:

• Offered to co-sponsor six races for $750,000 "for the purpose of executing a scheme to defraud Anthony Morgenthau."

• Chartered three Automotive Air Charter/Pentastar flights at a cost of $80,000 and paid with two nonworking credit card numbers.

• Posed as a potential buyer of a $28 million Gulfstream 4 owned by Priester Aviation. He got a trip from the company -- which he never paid for -- and also billed them $1,400 for limousine services, "which did not coincide with the chartered flight."

• Claimed to be an agent of BAM Racing and suggested he was a potential buyer for two planes worth $35 million owned by Spitfire Aviation.

Ray said he'd wire $14.2 million as a deposit on the planes and to pay an outstanding $200,000 bill for travel from Spitfire.

He never paid the bill, the government said.

In 2002, Ray also allegedly convinced employees at Community Federal Credit Union to cash checks that had fraudulent authorization numbers, the grand jury said.

No arraignment date has been set.

You can reach David Shepardson at (313) 222-2028 or dshepardson@detnews.com.