FBI investigation into Blackhawk Autoplex dealings continues

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By Doug Schorpp | Monday, March 10, 2008 |

The former Blackhawk Autoplex site, at the south end of the West Rock River Bridge, is on the market as investigators continue to sort through the financial records of the dealership, which closed abruptly in September. (Jeff Cook/Quad-City Times) Buy this Photo

While the FBI investigation continues into the Blackhawk Autoplex business in Milan, Ill., the state-of-the-art complex remains for sale.

Thad Denhartog, a commercial real estate agent for Mel Foster Co., said the seven-acre location was put up for sale in late September, the same day all the vehicles for sale were confiscated by a bank.

Blackhawk Bank & Trust, which is Blackhawk Autoplex’s lender, confiscated 66 vehicles Sept. 26 from the dealership lot at 1920 E. 1st Ave. because the bank was not receiving full payment when those vehicles were sold. The autoplex since has closed.

The asking price: $3,975,000. That includes a two-story, 33,325-square-foot building. Construction of the building was completed in 2004.

“It’s still available,” Denhartog said Tuesday. “There has been a lot of interest, but we haven’t sold it.”

Most potential deals would involve a car dealership, but he said there have been other buyers who would want to use it for other purposes.

According to the Mel Foster Web site, the description of the property reads: “Newly constructed auto dealership includes showroom, 450-plus car lot, service center, parts distribution, customer lounges, child playroom, cafe. All equipment (excluding inventory) for ‘state-of-the-art’ service center, full service cafe, NEC phone system, Arkona dealership software, 30 computers and office equipment. Business maintains 10,000 customer base w/694 lifetime service customers. Exciting opportunity coinciding with the new Rock River Bridge.”

The facility is owned by Jens and Pam Hirsch.

Sgt. Keith Kraske of the Secretary of State Police’s office has said he has received between 40 and 50 inquiries regarding the business. Complaints come from people who say they purchased used vehicles and still have unresolved issues, including allegations of refund checks that have been returned for insufficient funds and warranty work and promised repair work not fulfilled.

The Illinois Attorney General’s office said in December that the Better Business Bureau and the attorney general’s office had received 60 consumer complaints. Investigators are reviewing the complaints to determine whether law enforcement action should be sought.

Marshall Stone, supervisory special agent/media coordinator for the FBI’s Springfield Division, said staff members there are doing record analysis on the business, including information from additional records that were not found onsite.

“There is nothing to report. It is still pending,” he said Tuesday.

Kraske said his office has been dealing mainly with buyers of vehicles, who are seeking documentation such as license plates and car titles they never received.

He said some complainants say they had warranties of lifetime oil changes that they now will not receive. “We also are getting complaints from lien holders and financial institutions,” Kraske said. “They also put up money for vehicles, but have not seen the title yet.”

Doug Schorpp can be contacted at (563) 383-2292 or dschorpp@qctimes.com.