ST. GEORGE — A yearlong investigation into a local used car business has resulted in the arrest of its owners for investigation of running a drug money-laundering scheme.
Joseph Paul Evans and Christopher Madsen, both 27, appeared in federal court in Salt Lake City Thursday.
They were taken into custody Wednesday at St. George Auto Center, 488 E. St. George Blvd. Search warrants were also served on the business in addition to other unspecified locations identified in a sealed federal indictment.
Bank accounts, vehicles and other property traced by authorities to the alleged money laundering operation were also seized in the raid.
Evans is charged with five felony counts of money laundering, a charge punishable by up to 20 years in prison, and one count of structuring financial transactions, which is punishable by up to 5 years in prison.
Madsen is charged with two counts of money laundering and one count of structuring financial transactions.
The federal indictments allege the two men used their business to conceal a profitable illegal drug operation.
Numerous agents with the FBI, Drug Enforcement Administration, Motor Vehicle Enforcement Division and Internal Revenue Service were involved in Wednesday's arrest and search.
St. George Lt. Russell Riggs, commander of the Washington County Drug/Gang Task Force, said he asked the DEA to help with the investigation 9 months ago.
"We've been looking at these individuals for quite some time," said Riggs. "This has been a topic of concern for the drug task force for a couple of years."
Police tape surrounded the business on Thursday and an orange sticker pasted to the front door said the office was closed and its license revoked.
An employee with a nearby business, Avis Car Rentals, said he watched the event unfold and was pleased to see the men put out of business.
"It's about time. There's been a lot of activity over there, and they're not selling too many cars, either," said the man, who did not want to be identified.
A finance company seized 27 vehicles parked at St. George Auto Center, said Jodi Monaco, public information officer with the Motor Vehicle Enforcement Division. Riggs said he fielded at least 20 calls from concerned former customers of the now closed used car lot.
"There are a significant number of innocent buyers, people who still need a title or license plate or paid money to the business, who are going to need some help. Nobody knows the status of the business right now," said Riggs.
Monaco said people with unfinished business with St. George Auto Center can take their car registration and a copy of the sales agreement to the DMV in St. George and they will be issued a temporary permit at no charge.
Charges that Evans and Madsen were involved in fraudulent loans, false titles and other violations related to the auto sales industry will be filed against Evans and Madsen with the Washington County attorney's office next week, she said.
Evans is scheduled to be in 5th District Court on Monday for a preliminary hearing on a second-degree felony charge of false evidence-title, registration or plates filed earlier this year.
Evans' attorney, Michael Shaw, did not return a phone call seeking comment.
Riggs said Evans and Madsen enjoyed luxurious lifestyles with expensive homes, cars, motorcycles, boats and property in Brian Head, a ski resort community in Iron County.
"The disposition of the impounded property will be determined after further investigation and the review of documents and financial records seized by the U.S. Attorney," said Riggs. "My hope is that the U.S. Attorney's office will go after every dime from these guys."
E-mail: nperkins@infowest.com