Portland, Ore. – The investigation into allegations against a local Prineville car salesman, Michael Smetzer Jr. and his company Central Oregon Motors, has been taken over by the FBI.
The Prineville Review initially broke the story in mid-October, followed by additional developments and questions regarding ties to a former manager of the business who had denied holding any such role in Central Oregon Motors and being named in a lawsuit by a creditor for nearly $1.3 million.
Days ago, the Prineville Review received multiple tips that the investigation had been handed to the FBI, according to victims involved in the case. Earlier today, an official with the Prineville Police Department confirmed that the investigation had officially been handed to special agents with the FBI.
A sergeant with Prineville Police also confirmed that multiple new victims had also come forward this week after the case had already been handed over to the FBI, and those new victims have been referred over to special agents. It was not clear if the victims reside in Oregon, as Smetzer had reportedly conducted business with those in other states.
Officials with the FBI’s Portland field office took a message for their communications officials but have not yet responded to our request on Friday seeking comment. We will update this story if there is any prompt response in the coming days.
According to documents provided to the Prineville Review, Crook County District Attorney Kari Hathorn had confirmed by email to at least one victim that she understood the case was handled over to the FBI. She elaborated in the emails that a US Attorney would eventually be assigned to the case and would not involve her office.
“My understanding is the feds have taken the investigation, so my office won’t be involved in the case. It’ll be assigned to a US Attorney once the investigation is completed,” Harthorn wrote.
We have also reached out to DA Hathorn’s office for comment late Friday, but have not heard back.
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In mid-October, the Prineville Review initially broke the story regarding the growing allegations from numerous victims who detailed an extensive fraud scheme by Smetzer. Prineville Police had reportedly told victims initially that it was a “civil matter”, but later launched a criminal investigation after more victims came forward and an Oregon DMV investigator released his report.
Documents obtained by the Prineville Review from multiple victims, which were also provided to investigators, also purportedly show that Smetzer had forged signatures on vehicle titles as well as created bogus bills of sale in an effort to mislead victims about vehicles he had sold for them on consignment. Smetzer is alleged to have not remitted the sale proceeds to his victims, some of which are out tens of thousands of dollars.
The Prineville Review had also learned that officials with the Oregon DOJ had also been taking a look after multiple consumer complaints. The Prineville Police have repeatedly refused to comment on questions regarding their initial handling. It was unclear if pressure from state officials following victim complaints played a role in the departments second look into the allegations against Smetzer.
We also obtained a copy of a response by Smetzer’s attorney to the Oregon DOJ to the complaint filed by Jeff Peck — one of several reportedly made by multiple victims. The attorney’s letter blamed Smetzer’s issues on “financial difficulties” that resulted in him allegedly using monies from the consignment sale for operating expenses. The letter did not detail what those expenses included or what amounts.
“My client is committed to working through this situation to ensure that he can make anyone affected by his well meaning,
desperate, but wrong choices,” wrote Jim Boness with Intellequity Legal Services.
“To date, and in regard to Mr. Peck specifically, my client has not paid Mr. Peck any money. He has spoken with Mr. Peck, but has not met with him in person, mostly because Mr. peck’s son has been harassing, threatening and trespassing against my client.”
A full copy full letter can be viewed here.
Subsequent coverage from this publication (which revealed the Oregon DOJ had also been involved), as well as from KTVZ and the national publication The U.S. Sun, are reportedly leading more victims to come forward, according to Peck, one of the early victims to speak out.
Peck and many of the other victims have been expressing their frustration that Smetzer has yet to be arrested so many weeks after what they say is clear evidence of fraud. Peck and his family are currently out $33,000. While the case is now in the hands of the FBI, a protest is reportedly scheduled on Dec. 18th outside the
According to several victims, Smetzer is currently in the process of selling numerous vehicle and other personal assets on craigslist and Facebook. Several victims have told the Prineville Review they believe Smetzer may be preparing to flee the area.
This is a developing story you can count on us to keep you updated on. Join the discussion on Facebook or X (formally Twitter). If you have a news tip be sure to reach out to us by visiting our Contact Us page.
