Man Guilty of Running Phony Used Car Charity

A man has been convicted of using a phony used car charity to siphon off nearly $1 million that he promised would be used to help neglected and abused children.

After creating what was supposed to be a nonprofit corporation, Ronald Higgerson accepted donated automobiles and sold them to the public with a promise that all proceeds would benefit children.

None of the $783,000 deposited in various bank accounts went to charity or has been recovered, prosecutor Sue Wilson said after the jury verdict Wednesday in Sacramento Superior Court.

“He defrauded dozens of people and ruined some of their lives,” Wilson said, adding that his scam has “created obstacles for legitimate charities that now find themselves under a cloud of suspicion.”

During the trial, defense attorney Russell Fong said the Internal Revenue Service ordered Higgerson in 1997 to begin building shelters for child-abuse victims within five years.

That goal was thwarted by bad press and state investigators, who shut down his charity in November after 1 1/2 years, Fong said.

Fong said he would appeal the verdict, but did not elaborate.

Evidence produced at the trial showed that Higgerson’s automobiles were sold “as is,” without the state-mandated smog and safety checks. Some were inoperable and most were in need of major repairs.

“It wasn’t just the money,” juror Susan Gardner said. “It was the smog and the safety issues. He let those cars go out there in an unsafe condition.”

The jury found Higgerson guilty on 13 counts of grand theft by false pretenses, and 24 counts of operating an unlicensed used car dealership.

Higgerson, 54, could face 25 years in prison when he is sentenced July 2. However, Wilson said he probably will not receive the maximum punishment because all the counts were misdemeanors.