Shubert Motors under probe

Lenoir City Police Chief Don White confirmed Tuesday that the Lenoir City Police Department is investigating the business and its owners in conjunction with District Attorney General Russell Johnson and the Tennessee Bureau of Investigation.
White could not confirm specific details of the investigation, but said the case was “complex” and he hoped to release additional information in the near future.
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 and in future print editions of the News-Herald.