Des Moines, IA – A Minnesota man who claimed to be running fundraisers for schools and athletic groups has been convicted of cheating Iowa businesses in a phony advertising scheme.
Mike Gerken was first exposed by KARE 11 investigation last year after Twin Cities area business owners claimed he had conned them out of thousands of dollars.
Elk River realtor Vicky Biren and Susan Michaletz – owner of Popped Corn in Minnetonka – are two of the business owners who say Gerken convinced them to buy advertisements on discount cards supposedly being sold by student groups as part of school fundraising drives.
They say Gerken took their money and disappeared.
“Never heard from him. From there after, he stopped answering my calls,” Michaletz said.
The discount cards were never made. What’s more, the schools told KARE 11 they had never even heard of Gerken.
After KARE 11’s investigation, Minnesota Attorney General Lori Swanson took action, accusing Gerken’s two businesses – “Moms and Dads for Kids” and “Dad’s Fundraisers” – of duping more than 40 Minnesota businesses.
“It seems like a scam to us,” Swanson told KARE 11.
Gerken agreed to a consent order that required him to pay restitution and prohibited him from selling advertising in Minnesota. But that didn’t stop Gerken.
According to court records, Gerken went to Iowa where prosecutors say he used the alias “Bob Anderson” to take nearly $12,000 a dozen Des Moines area businesses in a similar scheme.
Citing his history on Minnesota, Iowa prosecutors filed felony charges against Gerken.
A jury found Gerken guilty in August and he was sentenced earlier this week.
Victims asked for prison time. “People should not be able to commit crime like this and get away with it,“ one victim told the judge.
But Gerken begged forgiveness, telling victims who attended the hearing that he was committed to paying them back.
“I’m working incredible hours to pay you guys back, and I apologize sincerely,” Gerken said.
Instead of jail time, a judge ordered probation to give Gerken a chance to make restitution and clean up his act – with the threat of years in prison if he doesn’t.
If you have a suggestion for an investigation, or want to blow the whistle on fraud or government waste, email us at: investigations@kare11.com