Man duped victims into donating 2,000 cars for fake veteran charities, feds say
A 54-year-old Utah man accused of running a nationwide charity scam in which he solicited donated cars for veterans and pocketed the cash is going to prison.
Travis Peterson — who prosecutors said relied on robocalls and newspaper advertisements to entrap his victims, many of whom were over 55 — was sentenced to three years and five months in federal prison, the U.S. Attorney’s Office for the Northern District of Georgia said in a March 29 news release.
Peterson was also ordered to pay $541,032 in restitution, representing the amount of money he is accused of taking from his victims.
“Peterson shamelessly defrauded thousands of people while supposedly helping veterans,” U.S. Attorney Kurt R. Erskine said in the release. “Fraudsters rely on the goodwill of unsuspecting citizens to perpetrate their schemes.”
Tommy D. Coke, inspector in charge of the Atlanta Division, said Peterson “preyed on older citizens who were trusting,” while Samuel Levine, director of the Federal Trade Commission’s Bureau of Consumer Protection, called charity scams and robocalls “a toxic mix.”
Defense attorneys representing Peterson, who is from West Ephraim, Utah, declined to comment in a statement to McClatchy News on March 30. But in a personal statement submitted to the court ahead of his sentencing, Peterson appeared to take responsibility for the scheme.
“I committed a crime and stand ready to face punishment,” he said. “I wrongfully deceived good people who believed that most of the funds generated from their donations would be going to those in need.”
According to a grand jury indictment filed in December 2020, Peterson’s alleged scheme lasted from April 2012 to July 2018. During that time, he’s accused of registering a slew of businesses in Nevada, Michigan and Utah that purported to be tax-exempt charities for veterans and their families.
Peterson used robocalls, websites and newspaper advertisements to solicit donations to the fake charities in the form of used cars and other property, which he claimed would be tax exempt, prosecutors said. The victims were often family members of veterans or older individuals.
Peterson worked with third-party auction companies to pick up and sell the cars that were donated, telling victims the money from the sales would go directly to veterans and their families, the government said.
According to the indictment, Peterson ultimately sold nearly 2,000 cars through the auction companies, netting himself more than $500,000. He is accused of spending the money on an ATV, vacations, restaurants, movies, online dating services, groceries and gas.
The Federal Trade Commission filed a civil suit against Peterson in Utah federal court, winning a judgment in 2019 that banned Peterson from using robocalls for charitable donations. He was also ordered to pay $541,032 and forfeit 88 cars.
Peterson was indicted on criminal charges the following year. He pleaded guilty to one count of mail fraud in November.
In his 13-page statement to the court, Peterson said he was “deeply ashamed and remorseful” about his actions. He spoke about a series of failed business ventures and struggles with alcohol addiction.
“I faced many challenges throughout my life, but they do not excuse my conduct. Many other people face challenges and do not resort to crime to solve them,” Peterson told the judge.
He said he got the idea for a veteran charity using donated cars from ads he saw while living in Detroit, Michigan, prompting him to start working with local charities and later moving to Chicago to “expand the business.” When his father died, Peterson said he opted to move home and look after his mother.
Peterson said he and another person who worked with the charities then decided the “best and simplest way” to handle the donations would be for him to receive all the proceeds from the sales of donated cars as his compensation, while all the proceeds from the sales of donated real estate went straight to the charities.
“I did not appreciate at the time that such a compensation arrangement would be illegal,” Peterson said.
Since his indictment, Peterson said he has found a purpose helping the victims of a “polygamist cult” in Arizona whose leader, Warren Jeffs, was sentenced to life in prison on charges of child sexual assault. Peterson reportedly met several members while volunteering with recovery efforts after a disastrous flood in 2015.
Some of those victims wrote letters in support, calling him an “amazing friend,” “good person” and “positive male role model.”
“I am an expert caregiver and cannot stress enough that Travis has the kindest and most honorable of intentions in every situation I have witnessed,” one woman wrote. “He is my best friend and those are words I do not use lightly.”
Peterson was sentenced on Wednesday, March 23, court filings show.
In addition to prison time, a judge ordered him to serve five years of supervised release, during which time the court will keep a close eye on his finances.
Peterson remains free on bond until he reports to prison.
This story was originally published March 30, 2022 at 4:14 PM with the headline "Man duped victims into donating 2,000 cars for fake veteran charities, feds say."
