The auctioneer who has disposed of unclaimed cars at the Minneapolis impound lot has conducted an estimated 28 auctions in the past year without a required license.
Auctioneer Mark Friederichs admitted that he let his license lapse for a year until that was called to his attention and he renewed it last week. He said the lapse was inadvertent.
State law requires auctioneers to be licensed, and the contract between the city and Friederichs requires him to have that license. The city in 2013 contracted with Friederichs for $50,000 for one year, and has extended that contract annually. The contract requires Friederichs to present a current Hennepin County license for the contract to stay in effect. He said he has auctioned vehicles for the city for 23 years.
The city has not responded to Star Tribune questions about the license lapse, including why it didn't require Friederichs to demonstrate he was licensed, as its contract requires, for the most recent extension covering 2016. According to county records, his license expired in October, 2015.
Because auctioneers must have a surety bond under state law, Friederichs said he typically pays his insurer the bond fee and waits for the bond to be issued by his insurer before he sends it in with his license renewal. He said in 2015 he paid the bond but never got the paperwork from the insurer.
"It just didn't dawn on me," he said. Friederichs does business as Seller USA, which is based in Golden Valley.
The license lapse came to light when auction customer Sherrie Williams of Brooklyn Park, checked with the county. She said she was misinformed about the inspection process required for vehicles purchased at auction.
Every month, the city of Minneapolis auctions unclaimed vehicles in the municipal impound lot at 51 Colfax Av. N., an industrial area just to the northwest of downtown. The outdoor auctions typically draw dozens of bidders vying for 100 or more vehicles, many of them rusted, dented or sitting on flat tires.