Former Cedar Rapids dealer accused of theft, criminal activity will stand trial in September

The former owner of Family Auto Center in Cedar Rapids, accused of operating the dealership through fraudulent thefts and transactions, pleaded not guilty to theft charges this week and will stand trial Sept. 4 in Linn County District Court.

Edward Polaco, 42, of Robins, was charged last month with one count of ongoing criminal conduct, two counts of first-degree theft and one count of second-degree theft. He is accused of operating the business with proceeds from unlawful activity, including selling eight vehicles, worth more than $10,000, with the intent to defraud Farmers State Bank in Marion between Dec. 16, 2009 and March 31, 2010, according to the criminal complaint.

During the same time period he also obtained tax, title and license fees for $17,699 from 32 customers who purchased cars from Family Auto, which was misappropriated and not forwarded to the county treasurer. He also accepted two trade-ins which were sold to other customers with paying secured liens on the vehicles totaling $8,259, according to the complaint.

The auto center closed in April.