MONTCALM COUNTY, Mich. — A significant cache of court orders and lawsuits against the owners of Lakeside Motor Sports in Mecosta County and Nelson's Speed Shop in Greenville show multiple creditors are set to take possession of hundreds of boats, outboard motors and vehicles.
The latest developments reveal at least four creditors are seeking to repossess various pieces of inventory due to alleged loan defaults exceeding $1 million.
Court documents obtained this week by FOX 17 show four separate parties are attempting to recover potential losses.
These parties include:
- Union Bank: Seeking to repossess 17 trucks, cars and boats, including a 1969 Corvette.
- Brunswick Acceptance Company: Seeking roughly 39 boats.
- Polaris: Seeking “all Polaris-branded or affiliate branded inventory,” totaling nearly 400 items.
- Wells Fargo Commercial Distribution: Seeking approximately 550 pieces of inventory, including boats, trailers, outboard motors and Ski-Doos.
According to court documents, Lakeside Motor Sports has agreed to surrender all requested assets.
The company's owners and remaining staff have been barred from selling, transferring, taking or destroying any of the assets in question.
In addition to the loan default allegations, an alleged check-kiting scheme involving Lakeside Motor Sports is currently under investigation.
The legal troubles began when both motor sports shops closed for several days last month, prompting Union Bank to suspect that loan payments might not be forthcoming.
Union Bank and Lake Osceola State Bank subsequently filed suit, claiming the company had defaulted on over $1 million in loans.
On Thursday, Montcalm County Circuit Court Judge Ronald Schafer issued a preliminary injunction, stating that certain company assets must be sold at auction, with the proceeds going to the banks.
That one injunction listed 17 vehicles and boats that must be moved to Lakeside Motor Sports' car garage in Mecosta as soon as possible.
Lawyers for the plaintiffs declined to comment on the matter. FOX 17 has confirmed that three other lawsuits have been filed against the company, but the paperwork is not yet publicly available.
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