Palm Harbor Boat Dealers Accused In Fraud, Money Laundering Scheme

Palm Harbor FL

08 April, 2022

10:18 AM

Description

PALM HARBOR, FL — The Pinellas County Sheriff's Office has arrested two men accused of taking part in a fraud and money laundering scheme at a Oldsmar boat dealership. According to economic crimes detectives, 67-year-old John Hartnett of Dunedin owned and operated Gulf Coast Boat Sales at 37517 U.S. 19 N in Palm Harbor. James Laden, 39, of New Port Richey was listed as the general manager of the business. The boat dealership sold new boats from third-party manufacturers, used boats and consigned boats. According to detectives, the boats were being sold by the dealership for an agreed-upon price, with a commission going to the dealership. Detectives said Hartnett also owned and operated BeachCat Boat LLC, a boat manufacturing business at 120 Pickney St. in Oldsmar. The business specialized in the manufacturing of new pontoon boats and sold them directly to the public through dealers, including Gulf Coast Boat Sales. According to detectives, from May 2015 to late 2017, the sheriff's office received 56 complaints from customers, both individuals and businesses, saying they were systematically defrauded of their property, resulting in a loss of about $800,000. Detectives learned that some victims provided their boats and or trailers to be sold on consignment and were never compensated or had their property returned. Victims also paid Gulf Coast Boat Sales to purchase a new boat, but never received a boat or had their payment returned. Detectives said some victims were not able to register their newly purchased boats because they never received the titles after purchasing them. Detectives discovered that Hartnett took the victims' money from the Gulf Coast Boat business account and illegally deposited it into his personal account by funneling it through the operating account for BeachCat Boat LLC. They said more than $100,000 was laundered during one year. Hartnett and Laden were arrested Wednesday and charged with one count of scheming to defraud. Hartnett received an additional charge of one count of money laundering.