A federal magistrate has given the green light to an auction of more than 200 classic and muscle cars that Jeffrey Lane Mowen bought with $6 million allegedly obtained in a swindle.
On another matter, Magistrate Paul Warner refused to release Mowen from jail pending his trial on charges of fraud and solicitation of murder, ruling the Lindon man poses a flight risk and is a danger to the community.
At a hearing Tuesday, Assistant U.S. Attorney Mark Hirata said Mowen attempted to hire a man to kill witnesses in his case through a fellow inmate at the Davis County Jail. He alleged that Mowen made the solicitation in a letter he dictated in Morse code to the other prisoner, who was wearing a wire.
The sale of the vehicles originally scheduled for Jan. 6 was delayed after Mowen asked that an independent appraiser assess the value of each of the 207 vehicles. He claimed the appraisals already obtained by the U.S. Marshals Service, which has been paying $21,000 a month to store the vehicles, were too low in some instances.
"We have a collection that is appreciating faster than the expense to maintain that collection," Mowen said, adding the cars continue to gain value.
But Warner said there is no way to know whether the values will increase, and ordered the auction to go forward. He said Mowen will have seven days to object to the price tag of individual vehicles and request an independent appraisal on that particular car.
No date has been set for the auction. The vehicles include Porsches, a 1948 Plymouth DeSoto, a 1932 chopped rat custom hot rod, a 1981 Delorean, a 1925 Ford Model T "Woody," a 1999 Jaguar XJR and a tricked-out golf cart. The beginning price will be two-thirds of the appraised value.
Warner, who stressed Mowen has the presumption of innocence, said proceeds will go into an escrow fund. He told Mowen thae funds could be paid as restitution to alleged victims or, if there is an acquittal, "you'll have a tidy sum of money."
Mowen, 47, is charged with three counts of wire fraud and one count each of solicitation to commit a crime of violence, tampering with a witness and retaliation against a witness.
A 2009 indictment alleges Mowen received more than $18 million in investments after promising returns as high as 33 percent a month through foreign currency trading and real estate programs. He initially made some payments to investors, but stopped after about a year, the indictment says.
Authorities say Mowen fled the United States in fall 2008 when confronted by investors. He was arrested in Panama last year.
