FREMONT – Just hours after facing a civil replevin action, Craig Harbaugh, owner of Tactical Solutions Gear, was arrested by Federal authorities outside the Dodge County Courthouse on Tuesday afternoon.
Great Western Bank initiated what’s known as a replevin action against Tactical Solutions Gear (TSG), to take possession of the store’s entire inventory in an effort to recoup some of the $4.6 million dollar debt the company now owes them. Unlike other legal collections actions that seek financial compensation, a replevin action seeks to take possession of the actual goods or physical property listed as security on a loan or line of credit. Currently, the entire stock from TSG is in the hands of an auction company, in a secured facility.
As Harbaugh, owner of TSG for 16 years, left the Dodge County Courthouse after a hearing on that replevin action, Federal authorities took him into custody on fraud charges centered around numerous falsified contracts on the books at TSG.
A federal indictment alleges that Harbaugh falsified multiple high value contracts to use as proof of investment worthiness to Great Western Bank and multiple individual investors. Among the allegedly falsified contracts, the Federal indictment details a supposed contract with the Nebraska State Patrol worth over one million dollars, claiming that the NSP had committed to the purchase of tactical gear from Harbaugh’s store. Authorities say that document doesn’t represent a real contract.
Also detailed in the Federal indictment is an alleged $10 million dollar Department of Defense contract, which is written to appear that the DoD committed to the purchase of night vision equipment from Tactical Solutions Gear. Federal prosecutors say this, too, is falsified.
The FBI alleges that Harbaugh presented these sham contracts to the bank and to investors to convince them to loan his company the money to purchase the required stock. The indictment does not detail what Harbaugh might have really done with the over $11 million dollars he allegedly defrauded investors for.
Craig Harbaugh was an investigator for the Dodge County Sheriff’s Office, and although he still lists himself as one on multiple social and professional profiles, he is no longer serving the county in that function. Dodge County Sheriff Steve Hespen says that Harbaugh was placed on administrative leave on August 29th.
Craig Harbaugh will make an initial appearance in Federal court before Judge Michael D. Nelson on Wednesday, October 23rd at 1:30PM.
Mike McKnight, WOWT News contributed to this report. McKnight’s investigative findings used with written permission.