Prior Lake man convicted of stealing money for fake fundraiser

Prior Lake American

A Prior Lake man was convicted in August of stealing more than $11,000 from businesses in Iowa for a fake fundraiser.

Michael Gary Gerken, 55, was found guilty of first-degree theft and ongoing criminal conduct for crimes committed in 2017.

According to the preliminary complaint review:

Gerken claimed he was the owner of a fundraiser called “Moms and Dads for Kids.” Under the guise of the fundraiser and the alias of “Bob Anderson,” Gerken approached 11 businesses, most of which were in Polk County, Iowa, to sell advertising space on a fundraising card.

Gerken told the businesses he was working with high school sports teams, who would be selling the cards. Fundraising cards were never made and Gerken had never contacted any high school sports teams.

Once payment was received, Gerken ceased communication with the businesses. He received 12 checks for more than $11,200.

“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 for Sept. 27 at 2 p.m.

According to a KARE 11 investigation, Gerken pulled similar scams against businesses in Minnetonka, Elk River and more.

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

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.

Gerken claimed to provide coupon cards to high school sports teams and other youth groups that provided discounts at area businesses to those who purchased the cards and that the youth group and sports team members would be selling the cards to fund activities.

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

Gerken will be sentenced on Oct. 2 at 8:15 a.m.