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Three sources of RV dealer inventory financing recently were repaid over $623,000 as a result of a forfeiture proceeding related to a dealer fraud case in Alaska, according to the Anchorage Daily News.

The case involves Danial Twitchell, former owner of Alaskan Adventures RV Center, who now is serving a three-year federal prison sentence.

The lenders who were repaid are KeyBank, Deutsch Financial Services and CIT, which recently left RV lending.

A federal jury convicted Twitchell last February on 14 counts of bank fraud and four counts of money laundering.
Twitchell has appealed.

His attorney said the forfeiture proceeding was unnecessary because Twitchell offered to repay the lenders anyway, according to the newspaper.

Federal prosecutors told the jury during Twitchell’s trial that he obtained inventory financing for units he had already sold and failed to repay the lenders after selling units he had pledged as collateral, the Daily News reported.

Twitchell, who closed his dealership during May 2000, told the jury he had cash flow problems and used his own money to support his dealership. His attorney said being late with bill payments is not a crime.

The timing of the closure of Twitchell’s dealership, just before the peak of the RV rental and sales season in Alaska, made the lenders suspicious, according to the newspaper.

The FBI eventually was called, and agents found over $425,000 in cash in a safe underneath the stairs in Twitchell’s home. The FBI eventually seized more than $600,000 during its investigation.