|Shubert Motors under probe
Shubert Motor Sales in Lenoir City, which was officially listed as
out of business by the Better Business Bureau earlier this year, is
currently under investigation for complaints of theft and fraud by
multiple law enforcement agencies.
Susan Niland, public information officer for the TBI, confirmed in an email correspondence that at the request of Johnson, TBI agents began Jan. 26 investigating complaints of theft and fraud at Shubert Motor Sales.
In addition to the criminal investigation, a lawsuit seeking $500,000 was filed Feb. 10 in Chancery Court of Loudon County against Shubert Motor Sales, Inc., Mike Shubert and Mark Shubert.
According to the suit, David and Pam Aaron of Loudon are seeking the repayment of a $500,000 promissory note issued to Shubert Motors and signed for Dec. 29 by Mike and Mark Shubert.
The note detailed a repayment plan without interest over a period of 125 months at $4,000 per month and due monthly on the 15th. The plan dictates that “at maturity, or default or failure to pay any installment of the principal required herein, the entire balance shall be immediately due and payable.”
The Shuberts “defaulted in their obligations,” according to the court action.
Jerrold Farinash of Farinash & Hayduk, the attorney representing the Aarons in the suit, did not respond to requests for comment.
More details on the investigation as it develops will be made available online at www.news-herald.net and in future print editions of the News-Herald.