That’s what Michael Berzowski, a Milwaukee lawyer, asked FBI agents after they called inquiring about a suspicious boat loan request. Needless to say Berzowski was a little surprised to hear the news that his financial records had been used to apply for yacht loan as part of a $2.6 million fraud scheme.

Early Wednesday in Chicago the FBI arrested Michael B. Vorce, 31, of Grand Rapids, Mich., and James C. Jett, 29, of Byron Center, Mich.,  on charges of bank fraud. The duo were caught applying for a $391,450 loan on a 48-foot Sea Ray yacht using Berzowski financial records.

According to the latest figures from Info-Link’s Bellweather Report new powerboat sales in June dropped nearly 20 percent from the June of 2007.  This continues the dramatic drop in new powerboat sales from the market’s peak in March of 2004.

What is bad news for dealers spells opportunity for boat buyers. As dealer inventories continue to expand the opportunity for boat buyers to negotiate great deals increases. The secondary market for used boats is also a great buyers market at the moment since such great deals can be found on new boats the prices for used boats are dropping in order compete.

Just a quick follow up to our previous post on the Clean Boating Act of 2008, Congress did pass the bill so the states are not forced to enact their own legislation. Thanks for all those who wrote their rep about this important issue. For more info check out http://www.boating-industry.com/output.cfm?id=1700659.

You read that headline correctly. If Congress does not pass the 2008 Clean Boating Act by September 30th, boaters who do not file for a state or federal permit to operate a boat face potential fines of $32,000 a day.

In lieu of a federal act boaters will be faced with local regulators interpreting the new Environmental Protection Agency requirements for engine cooling water, deck run-off, bilge water, and any other water-based operational discharge from a recreational boat. Failure to obtain the proper local permits will subject boaters to fines up to $32,000 a day for non-compliance. In order to avoid this potential nightmare scenario write your local Congressman a letter urging them to sign the Clean Boating Act before Sept. 30th. You can send a letter online by following this link and filling out the form.

Boat dealers are continuing to struggle with the economic downturn. According to Spader Business Management new unit sales dropped 31.0 percent in the January - April time period this year compared to 2007. Used boat sales didn’t suffer quite as badly dropping 22.2 percent. Overall total dealership sales are down 24.2 percent for the January - April time frame compared to 2007 resulting in an increase in net loss of 476.3 percent.

In order to survive the current economic downturn dealers are cutting expenses. New unit inventories have dropped 1.9 percent. Despite those efforts expense have still increased 12.2 percent as a percentage of gross margin as boat buyers continue to bargain hunt reducing overall profit margins.