By By KATHIE HEMPEL / Niles Daily Star
NILES – Cars sported big yellow signs. They loudly proclaimed the lot a "hassle free zone."
Not any more.
SamSon Used Car Superstore owner, Samuel J. Sweeden, 54, has been arrested and charged with three felony counts. The charges are related to his alleged multi-million dollar embezzlement of his in-law's 1994 Kansas Power Ball Lottery winnings of approximately $10 million.
Felix Kane, 85, and his wife, Alma La-Verne Kane, also 85, thought they would live, their later years, free of financial worries. However, the couple alleges that after trusting Sweeden to help them, they were left virtually penniless.
"The Kanes grew up in the depression. Suddenly, they found themselves bathed in all this wealth. They turned to relatives, they thought they could trust for help in managing it," said Detective Sgt. Fabian Suarez.
Wednesday, authorities from multiple agencies executed search warrants at Sweeden's businesses and homes. At the home, they recovered $91,000 in cash, from a safe, expensive jewelry and financial records.
Police seized the entire inventory of Sweeden's South 11th St. Niles car lot. Forty-six cars now sit impounded at the Law Enforcement Complex in Niles.
Sweeden faces charges on Criminal Enterprises and Racketeering, carrying a possible sentence of 20 years in prison; Embezzlement over $20,000 and Failure to File/False Tax Return.
Suarez initiated an investigation into the matter in January 2007, after being contacted by Kane's son. It is alleged that from 2004 to 2006, Sweeden transferred and took control of large sums of money from Kane and moved them into Sweeden's personal and business accounts.
It was in 2004 that Kane Sr. allegedly became financially involved with Sweeden, a Cass County resident. It is further alleged that over the next two years, Sweeden used his position of trust and influence to control the assets of Kane, including building a home for his in-laws on his 163 Brush Road, Cass County property for an approximate $600,000.
"Criminal Racketeering is a matter of trust and the ultimate betrayal of that trust," Cass County Prosecutor, Victor A. Fitz said.
The Kanes moved into the home constructed with their assets in the fall of 2005.
Fitz said that six months after the Kanes moved into their home, they requested the title of the home be placed in their names. Sweeden allegedly evicted his father and mother-in-law from their home indicating they were not titled on the residence and that it was not their property.
"It is estimated that between two and four million dollars have been taken from the Kanes' holdings. The financial audit will determine the full scope in which Felix and Alma Kane were victimized," said Fitz.
Financial records were also confiscated from several financial institutions in the area according to police.
"A large number of police agencies participated in this investigation. They include the Michigan State Police-Niles Post, Niles City Police Dept., Cass County Sheriff's Department, SCAR Auto Theft Section, the Major Case Unit and Investigative Support Unit of the Michigan State Police, Elkhart County Sheriff's Dept., Goshen City Police Dept. and the Indiana State Police. I thank all of them for their assistance," First Lt. Michael Brown, Michigan State Police-Niles Post said.
"Many other tasks remain to be completed in this investigation including the forensic financial audit of many bank accounts and business records is being conducted by the firm of Plante-Moran," Suarez said.
At this time, police say it does not appear that any past customers of the SamSon Auto dealerships were harmed in purchasing or trading in automobiles. If financial improprieties are detected for past customers, the Michigan State Police will contact them.
Fitz thanked his Cass County Prosecutor's office, Berrien County Prosecutor's Office, Elkhart County Prosecutor's Office and Muskegon County Prosecutor's Office for being instrumental in sorting through the complexities of the complicated case.
Arraignment took place Wednesday in Cass County District Court at 3 p.m. Sweeden is scheduled to be back in court for his preliminary hearing Friday, June 1 at 1:30 p.m.