Chaska man sentenced to probation for fake fundraiser scheme

Prior Lake American

A Chaska man has been sentenced to five years of probation after being convicted of stealing more than $11,000 from businesses in Iowa for a fake fundraiser.

Michael Gary Gerken, 55, was found guilty in August in Iowa’s Polk County District Court of first-degree theft and ongoing criminal conduct for crimes committed in 2017.

Gerken was sentenced to five years probation for the first-degree theft charge. If Gerken were to violate the terms of his probation, he could face 10 years in prison, according to court records. He was also fined $2,500.

Gerken also received five years probation for the ongoing criminal conduct charge, to be served concurrently to the first-degree theft charge. If he were to violate his probation, he could face 25 years in prison.

According to the preliminary complaint review, Gerken told business owners in Iowa that he was the owner of a fundraiser called “Moms and Dads for Kids.” Under the guise of the fundraiser and the alias “Bob Anderson,” Gerken sold advertising space on a fundraising card to 11 businesses, most of which were in Polk County, Iowa.

Gerken told the business owners that he was working with local high school sports teams, who would be selling the cards to raise money for the organization. Cards were never made and Gerken did not contact high school sports teams.

Gerken received 12 checks for more than $11,200. Once he received payment, Gerken cut off communication with the businesses.

“Defendant scammed a known 46 businesses in Minnesota and several more in Wisconsin,” according to the complaint review. “Defendant has criminal charges in Minnesota and Wisconsin for scamming businesses.”

The Minnesota court records website only shows traffic crimes under Gerken’s name. The Wisconsin court records website shows Gerken’s most recent address as being in Chaska and that he is charged with theft by false representation. A court appearance for that charge is scheduled on Oct. 26.

Gerken, as the owner of “Dads Fundraisers, Inc.” was sued in April 2017 by the charities division of the Minnesota Attorney General’s Office for “engaging in fraudulent practices in connection with soliciting donations for local Minnesota high school sports teams and youth groups,” according to the office’s 2017 annual report.

The charities division of the Minnesota Attorney General’s Office brings lawsuits against organizations that commit fraud relating to charities or otherwise violate charities and nonprofit laws, according to the report.

According to the report, Gerken told Minnesota businesses owners that he would provide coupon cards to high school sports teams and other youth groups that provided discounts at area businesses to those that purchased the cards. He said the cards would be sold by the youth group and sport team members to fund activities.

Gerken accepted money from businesses to advertise but never made the cards, the report stated. The lawsuit was settled after Gerken said he would pay restitution to the victims and not engage in “similar solicitation or fundraising activities in the future.”