The Gilbert Auto dealership in Pendleton closed in 2013 after filing for bankruptcy. The former owner, Mark Gilbert pleaded guilty on April 20, 2022, to a federal fraud charge and faces sentencing July 28 in U.S. District Court in Spokane.

WALLA WALLA — A former Walla Walla businessman who operated a chain of car dealerships in eastern Washington, Idaho and Oregon faces sentencing this summer after pleading guilty to a criminal charge in federal court.

Mark Gilbert pleaded guilty April 20 to fraud in connection with a document related to the purchase of a home in Hawaii in 2014. His sentencing is scheduled for July 28 in U.S. District Court in Spokane.

Gilbert became a well-known figure in the Walla Walla business community after coming to the area in 2002 from the Portland-Vancouver area. By 2012, he had acquired auto dealerships in Walla Walla, College Place and Moses Lake, along with dealerships in Milton-Freewater, Pendleton and Moscow, Idaho.

In exchange for the guilty plea, prosecutors have agreed to dismiss charges of bank fraud, two counts of aggravated identity theft and making a false declaration in relation to a bankruptcy case.

According to court documents, the charge Gilbert pleaded to is a Class A misdemeanor with a maximum penalty of one year in prison, plus up to one year supervised release, not more than five years probation, a fine not to exceed $100,000 and a mandatory $25 special penalty assessment.

The plea agreement states that prosecutors and Gilbert “agree that the appropriate sentence is a three-year term of probation.”

A federal grand jury indicted Gilbert in November 2017 after hearing evidence presented by the U.S. Attorney’s office which alleged he made false statements for a $745,000 mortgage loan to purchase the home on the island of Hawaii.

The case has been continued numerous times due to the COVID-19 pandemic, medical problems Gilbert is suffering and other issues.

Among Gilbert’s dealings was construction of the Honda dealership on property alongside state Route 125 in College Place, which opened in 2011. This was accompanied by the city constructing Commercial Drive to provide access to the business and a bank.

Gilbert’s business dealings began to quickly unravel in 2012 after the city of College Place filed a civil lawsuit alleging he had failed to fulfill promises on repayment of the Commercial Way project.

Other lawsuits rapidly followed by credit companies operated by Honda, Nissan, Ford and General Motors alleging Gilbert had violated agreements for repaying loans by converting funds for other uses instead of repaying debts owed. These were accompanied by other civil actions from lenders and others demanding debts owed.

Another action that came in 2013 was from the state Office of the Attorney General.

In a complaint filed in Walla Walla County Superior Court, the AG’s office charged that four of Gilbert’s auto dealerships had violated consumer-protection laws by failing to promptly pay off customers’ trade-in vehicles, resulting in some buyers being forced to make payments on both their new vehicles and their trade-in to avoid collection agencies and repossession.

By the end of 2013, all of Gilbert’s auto dealerships had been closed, and in June 2014, he filed in federal court for Chapter 11 bankruptcy protection. The case was converted in August 2014 to Chapter 7 bankruptcy protection.

The auto dealerships in Walla Walla and College Place have since reopened under new ownership.