This Minnesota man scammed dozens of businesses in 4 states before Polk County officials finally brought him to justice

Lee Rood | The Des Moines Register

Show Caption Hide Caption How to avoid falling prey to scams Take these steps to make sure opportunists don't get the best of you when hiring someone to provide a service.

Forty-six businesses in Minnesota complained that a conman who'd stolen thousands from them claimed to be the No. 1 school athletics and youth group fundraiser in the country.

But Michael Gary Gerken, a 55-year-old man from Prior Lake, Minnesota, also took thousands of dollars in Wisconsin, California and Iowa — before Polk County, Iowa, authorities stepped in to stop him.

Gerken was convicted this month in Polk County of first-degree theft and ongoing criminal conduct and will be sentenced Oct. 2. He faces up to 10 years behind bars on the theft charge and up to 25 years for ongoing criminal conduct.

He was arrested Nov. 27 in Iowa — seven months after Minnesota’s attorney general sued him in civil court for consumer fraud, deceptive practices and using an assumed name, court records show.

In Iowa and Minnesota, he called himself Bob Anderson and sold coupon-card advertising under the company names Dads Fundraising Inc. and Moms and Dads for Kids, according to Minnesota and Iowa authorities.

Wisconsin's attorney general received three new complaints against Gerken this year.

Such scams have become increasingly common around the country. Organizations such as the Better Business Bureau urge those who want to support school fundraisers to research companies before they partake, and ask which organization will benefit and what percentage of sales they will receive.

Donors should verify the offers through the benefiting school and pay only with a credit card — not cash.

Gerken claimed to sell advertising that would go on coupon cards and offer discounts at businesses. The cards, he said, would be sold by high school athletes raising money.

But his companies never produced the cards. He often disappeared after taking the money, with schools learning they had been scammed only after they failed to hear from him, according to court records.

Waukee High School Activities Director Jim Duea, one of several activity directors to testify at Gerken’s trial, said he'd never heard of Gerken before the charges, nor of his exploits in Minnesota.

“We’ve had some other questionable ones in the past where local businesses have contacted us, wondering if (a fundraiser) is real,” he said. “I can see where it could be easy to do. Obviously, it’s something out there that could potentially be a problem.”

Why Minnesota didn’t stop him

Last July, an assistant attorney general in Minnesota Attorney General Lori Swanson’s office got Gerken to sign a consent judgment in a civil lawsuit.

Gerken agreed to stop defrauding people and to repay more than $37,000 to his victims.

That agreement called for a $250,000 fine if Gerken violated any terms of the Minnesota agreement.

A spokesperson for the attorney general’s office said the case was referred to criminal authorities in Hennepin County, when the civil case was filed in April 2017.

Chuck Laszewski, a spokesperson for the Hennepin County attorney’s office, said his office did receive that referral. But Laszewski said his office only prosecutes felonies, and the sole case pending in that county was only a $790 theft.

He said prosecutors could not aggregate allegations in different counties to bring felony charges because the crimes alleged in two other counties did not occur within a six-month timeline as required by law.

“He’s a clever one,” Laszewski said. “He managed to keep out of trouble in the right time frame and using the right amount of money. We declined it, but said they could go to city attorneys, and they did.”

Gerken was convicted of gross misdemeanors in the two other Minnesota counties, he said.

“I’m glad you guys are a little more on the ball and able to nail him,” he said of Iowa law enforcement.

Mike Crabb, an Ankeny Century 21 real estate agent, was one of numerous people in Iowa that Gerken approached in the metro last spring.

"We met in Ankeny and he showed me a sample of the coupon card with discounts," Crabb said.

Crabb said Gerken was going to meet him the next day in his office, and he was going to write Gerken a check for banner advertising on a coupon card. The coupon card was supposed to be sold to supporters of Ankeny High School students.

"So we’re standing in the lobby and another one of our agents comes walking through, and the agent says: 'I know you. You ripped me off.' "

Crabb said he's not surprised Gerken got away with ripping off so many people for so long. "He’s a good salesman. If he decided to get a legit, legal job, he’d be good at it."

Brendan Greiner, the assistant Polk County attorney who prosecuted Gerken in Iowa, said he can’t talk about the case until after the October sentencing.

But he said cases like the one against Gerken are difficult to prove because Iowa law requires prosecutors to produce evidence showing the swindler never intended to perform the work.

More: An Iowa woman paid a contractor $53,000 for work he never did. It wasn't the first time, so why hasn't he been charged with a crime?

"They also tend to go from jurisdiction to jurisdiction,” he said. “So these cases require (police) officers who take the initiative to find out what has been going on in other cities as well, which is what happened here.”

Investigators in Iowa learned about the extent of Gerken’s exploits from an investigative report last year by KARE 11, a Twin Cities NBC television affiliate.

Lee Rood's Reader's Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Contact her at lrood@dmreg.com, 515-284-8549 on Twitter @leerood or at Facebook.com/readerswatchdog.

How to help

To report fraudulent activity or unscrupulous business practices, go to the Better Business Bureau's Scam Tracker. For more information on how to be a savvy business owner, go to bbb.org.