A North Carolina man was indicted in Chattanooga after federal prosecutors say he created a fraud scheme that allowed him to take money from Volkswagen owners under the ruse that he would be repairing or selling them.
The indictment says John Bragg II, also known as John Goode, owned a business involved in the restoration and sale of classic and rare Volkswagen vehicles.
Victims we spoke with Monday say some of the vehicles ended up at a shop he ran right in Sale Creek.
As a part of his fraud scheme, the indictment says Bragg advertised himself and his business as specialists in Volkswagen restoration, including participating in online communities of Volkswagen enthusiasts and appearances at automobile conventions.
The business, "JB Bugs Trick Truck N Rod," operated in various places in both the Southern District of Indiana and the Eastern District of Tennessee, according to the indictment.
“It just makes you sick to your stomach to know that he was out there doing this to not only us but to hundreds of different people. It's sickening," says Darci Bell.
Darci Bell says she found out on Facebook...Dozens of people commented under a post that they too had been defrauded by John Bragg II who also went by "JB."
Darci paid JB to restore her Volkswagen bus at JB Bugs Trick Truck N Rod in Indiana.
To her and her husbands surprise, JB brought the vehicle to a garage in Sale Creek.
The owner of Long Restoration in Sale Creek tells us Bragg previously owned the business when it was called JB Bugs Trick Truck N Rod.
When Braggs owned the shop, the owner says she and her husband worked for him but had no idea what he was doing.
The Hamilton County clerk says Bragg never had a business license at that address. But the Longs do now.
"These are the kinds of scams that JB was pulling on people all over the Volkswagen industry, throughout the country," says Kevin Caldwell, another victim.
JB is wanted for outstanding warrants in Indiana, Florida in West Virginia.
“The VW community is a good community. I mean, people are very trusting and very trustworthy for the most part," says William Stout.
William Stout entrusted in JB to restore his black 1956 Volkswagen.
JB took parts out of the bug and sold it to someone else.
Back in Indiana Kevin Caldwell invested in 5 Volkswagen vehicles through JB, many of which he hasn't seen again.
He also bought a car from JB that he sold to multiple buyers.
The financial loss?
“Let's just say it's over 100,000," says Caldwell.
A large piece of evidence from the indictment was Caldwell’s proof of wire transfers to JB.
Now, the Longs of Long Restoration are helping to restore one of JB’s victim's vehicles.
Many of these victims know they will not get their money back, but they say they are happy for justice to be served with the indictment.
“He's not going anywhere for a very, very, very long time. If he gets out, he will do it again," says Bell.
The indictment cites 3 other cases in which JB scammed his victims:
- September 17th, 2021: E-mail to victim K.C., with the subject "59 VW 23 Window Bus" and captioned "Purchase Agreement," signaling an agreement between Bragg and victim K.C. for the purchase, restoration, and resale of a 1959 23-window Volkswagen bus, resulting in victim K.C. transferring $32,500 to Goode via wire transfer.
- September 20th, 2021: E-mail to victim W.S., with the subject "59 Agreement" and captioned "Purchase Agreement," signaling an agreement between Bragg and victim W.S. for the purchase, restoration, and resale of a 1959 23-window Volkswagen bus, resulting in victim W.S. transferring $25,000 to the defendant via cashier's check.
- April 25th, 2022: An electronic text message from Bragg to victim M.T. providing bank routing information for the payment of funds for the purchase of a 1959 23-window Volkswagen bus, resulting in victim M.T. transferring $22,000 to the defendant via wire transfer.
Bragg is indicted on 3 counts of wire fraud.
Bragg's most recent residence was in North Carolina, where the Beaufort Police Department says he's been living for about 3 months under the pseudonym John Keliher.
He was arrested Monday by Beaufort police Monday on fugitive warrants in Indiana and Florida.
Read Bragg's full Chattanooga indictment below: