FAIRBANKS (AP) -- A car broker is under police investigation for allegedly failing to pay off bank loans on cars he received as trade-ins.
Michael Pierce, president of National Car Buyer's Club, acknowledged that his business is having some cash-flow problems, but he insisted all debts will be paid off.
Fairbanks police officer Jim Lowe, the initial investigator, said some people complained that cars they traded in to Pierce weren't getting their bank loans paid off.
Pierce, 25, said the company's cash crunch was created when it inadvertently took in more business than it could handle.
He said his business doesn't have enough money to cover outstanding bank debt on cars he's sold because of the lag time in collecting the money from new buyers.
The company has stopped making transactions for now.
At least one customer and one financial institution have filed complaints against the broker.
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