Elkton man pleads guilty to defrauding hundreds of thousands of dollars

Published 6:48 am Thursday, January 7, 2010

ELKTON — A 57-year-old Elkton man pleaded guilty in federal court yesterday to defrauding hundreds of thousands of dollars under the notion that the money would be invested in collector vehicles.

Fred Engelhart pleaded guilty to one count of wire fraud Wednesday when he appeared before U.S. District Court Chief Judge Michael J. Davis in Minneapolis. He was indicted Nov. 17, 2009.

In his plea agreement, Engelhart admitted to receiving money from an investor looking to purchase a collectible vehicle while acting as a broker. Instead of buying the vehicle, Englehart transferred $250,000 into his own account on March 23, 2007, and used the money to buy real estate.

Engelhart faces a potential penalty of 20 years in prison, though the sentence will be determined at a future hearing.