Iowa City man accused of fraudulent practice

IOWA CITY - A 68-year-old Iowa City car collector is accused of making false statements regarding the purchase prices of 28 vehicles he bought at Mecum Automobile Auctions in 2010 and 2011, resulting in a loss of revenue to the state's road use fund.

Records indicate that David A. Baculis Sr., of 2128 S. Riverside Dr., purchased the vehicles and allegedly evaded paying a total $49,294 in registration fees by providing the Johnson County Treasurer's Office with false bills of sale when he applied for titles.

Baculis allegedly stated he paid a total purchase price of $194,850 for 27 vehicles when he submitted applications for titles. The actual cost of the vehicles was $1,163,630, a difference of $968,780.

According to Iowa law, all individuals must pay a five percent fee based on their purchase price of a vehicle when they apply for titles. The difference between Baculis's prices added up to a loss of $48,439 for the state.

"The fee amount would have been placed into Iowa's road use fund," Maj. Paul Steiner with the Iowa Motor Vehicle Enforcement Office said.

Baculis also allegedly made a false statement in regard to the purchase price of a 1966 replica Cobra while applying for a title in May. He allegedly stated that the purchase price was $14,760 on the application, but the automobile cost $31,860.

The difference allowed Baculis to pay $855 less in new registration fees when he applied for the car title, Iowa Motor Vehicle Enforcement Agency records indicate.

Maj. Steiner says the Iowa Motor Vehicle Enforcement Agency looks at auction sales and follows the purchased vehicles back to when the new owners applied for titles on a routine basis. The prices are then compared through an auditing process.

"Sometimes we run into problems when people buy vehicles from other individuals and not at a dealership," Maj. Steiner said. "It's because the process is on the honor system and people swear on paper that it is the price they paid."

Baculis was being held at the Johnson County Jail and was later released on his own recognizance. He faces charges of first and third-degree fraudulent practice.