MADISON -- A Duluth man accused of using checks drawn on closed bank accounts to purchase trucks and an SUV has been indicted in federal court on four counts of interstate transportation of stolen vehicles.
Gale A. Rachuy, 60, pleaded not guilty to all counts at his arraignment Friday. He was released with conditions and faces 10 years in prison, a $250,000 fine and restitution on each count if convicted in a trial set for Jan. 10, 2011.
The Sept. 1 indictment alleged that between April 20 and July 12, Rachuy took the vehicles either from Wisconsin or Minnesota and crossed state lines knowing the vehicles were stolen. A 2008 Chevrolet Silverado 4x4 crew-cab pickup was the subject vehicle in two counts, which Rachuy is alleged to have taken from Wisconsin to Minnesota on April 20 and from Minnesota to Wisconsin on May 1.
The indictment alleged the other vehicles were a 2008 Chrysler PT Cruiser and a 1997 Nissan Pathfinder.
Rachuy allegedly obtained one of the vehicles from Benna Ford in Superior, said assistant U.S. Attorney Grant Johnson.
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Duluth police issued a warning to merchants Friday that Rachuy and his wife, Sandra Rachuy, had written checks to local businesses drawn from closed accounts at US Bank and Park Street Bank. Duluth police reported that Superior Meats; Computer Renaissance, Duluth; Adolph Store, town of Midway; Big Al's, Webster; and Hill Side, location unknown, all received bad checks.
Last year, Rachuy unsuccessfully sued the cities of Superior and Duluth in federal court for more than $300,000, claiming that during a search of a John Avenue warehouse Rachuy rented, police ruined up to 10 semi-loads of green-sawn lumber belonging to him.
Police were investigating reports of stolen tires and accusations that Rachuy had sold the same lumber to two customers when they entered the warehouse, turned off some utilities and seized tools and lumber, greatly diminishing the value of the green-sawn lumber.
Rachuy was never charged with a crime in connection with the search. He suffered a $300,000 loss when he sold the lumber and sought the return of tools, and compensation for property damage.
The suit Rachuy filed on Oct. 19 was dismissed on Dec. 1 by Magistrate Peter Oppeneer for lack of jurisdiction.
