In April, Santa Cruz County Sheriff’s deputies learned that an elderly man had made a series of large cash investments and loans to an auto restoration business on the west side of Santa Cruz, and feared he would not recover the money.
A three-month investigation followed, which would expand to include the District Attorney’s Office, Adult Protective Services, and the Bureau of Automotive Repair.
The team of investigators uncovered additional instances of fraudulent payments by other elderly county residents to the small car restoration business, GMP Speed and Machine, exceeding $800,000 – with nothing to show for it.
Investigators believe there may be even more victims of an elaborate fraud scheme.
The owner of GMP Speed and Machine, 42-year-old Grant Peuse of Scotts Valley, appeared in Santa Cruz County Superior Court on July 21, after his arrest the day before on five felony counts: grand theft, theft from an elder, money laundering, forgery and illegal possession of automatic weapons. He was released on $75,000 bail.
Peuse, who grew up in Scotts Valley, is to enter a formal plea at his arraignment, scheduled for Aug. 8.
GMP Speed and Machine, at 2119 Delaware Ave., Santa Cruz, is closed, after at least 12 years in business.
Chris Clark, spokesman for the Sheriff’s office, said Peuse was arrested in the Pleasure Point area of Santa Cruz on July 20.
Clark said that in April, the Sheriff’s office initiated an investigation “when we learned of a series of large cash investments and loans made by an elderly client of GMP Speed and Machine.”
Investigators said Peuse claimed to build or purchase cars for his clients. “What we would later find was a pattern of fraud, totaling losses of over $800,000 to numerous victims.”
“During the investigation, it became apparent that the elderly victim had been defrauded,” Clark said in a statement.
“Not only had much of the victim’s money not been directed towards the stated investment, but the victim’s credit card had also been used by Peuse to charge tens of thousands of dollars without the victim’s permission,” he said.
Investigators uncovered a similar pattern of fraud involving other people who had done business with Peuse.
“In several cases, Peuse told the victims that their invested money would be used to buy or build specific vehicles, and that buyers for these vehicles had already been located,” Clark said.
“We found that in some cases the vehicles to be built or bought never existed,” he said.
Deputies alleged that the victim’s money was used by Peuse not for repairs or restoration of cars, but for payment of personal debts.
“In at least one instance, Peuse is alleged to have provided forged documents to an investor to attempt to prove that the investment was successful,” Clark said in his report. “Peuse then used this as a means of soliciting additional money.”
Sheriff Jim Hart issued a statement that “If you believe you may be a victim or have additional information related to this case, please contact Detective Roger Galvin at 831-454-7642.”
Elderly victims are especially vulnerable to this
