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March 6, 2008

 

jeffrey c. rachor: an investigation

This report summarizes the results of Stratfor’s investigation of Jeffrey C. Rachor. In the investigation, Stratfor focused its research primarily on online public records.

General Background

Jeffrey Charles Rachor (SSN: 386-80-XXXX), age 46, was born on October 31, 1961, most likely in Michigan. He is married to Lisa Kay Rachor (SSN: 383-96-XXXX), age 45. The couple has two children, Corbin who is 16 and Colby who is 14.

Mr. Rachor’s primary residence appears to be a single-family home located at 218 W. Brow Road, Lookout Mountain, TN 37350, where he and his wife have lived since at least 2007. A phone number (423/821-6070) for the Rachor’s Lookout Mountain address appears to be registered under Lisa Rachor.

Mr. Rachor and his wife also own a condominium at 1848 E. County Highway, Unit 30-A, Santa Rosa Beach, FL 32459. Records indicate Mr. Rachor received a 30-year, $1,960,000 conventional loan from AmSouth Bank in order to buy the condominium.

Regarding other relevant property information, Jeffrey and Lisa Rachor maintained a residence in Charlotte, N.C., from at least 2000 to 2002. The Rachors sold the home, listed at 4203 Cameron Oaks Drive, Charlotte, NC 28211, in August 2002 for approximately $1.5 million.

Education

Mr. Rachor graduated in 1979 from Grand Blanc High School in Grand Blanc, Mich. He went on to earn a bachelor of arts degree from Michigan State University. Specific information about Mr. Rachor’s major and graduation date were not available in public records. While attending Michigan State University, according to one Internet bio, Mr. Rachor was “sponsored by General Motors though its cooperative program.” The current Michigan State Web site indentifies General Motors as an affiliated employer organization and describes such programs as combining classroom study with practical work experience.

Professional History

Mr. Rachor has served as president and chief executive officer and as a director of Pep Boys Manny, Moe and Jack, a nationwide automotive retail and service chain headquartered in Philadelphia, since he joined the company in March 2007. A U.S. Securities and Exchange Commission (SEC) report filed by Pep Boys that month indicates Mr. Rachor would be paid a base salary of $1.2 million and be eligible for an annual bonus equal to 150 percent of his base salary if he achieved certain predetermined corporate objectives. According to the SEC filing, Mr. Rachor also received a $1.2 million signing bonus and “a grant of 1 million options and 500,000 restricted stock units” at the start of his employment. As of Feb. 28, Mr. Rachor declared direct ownership of 601,522 shares of Pep Boys stock.

Before joining Pep Boys, Mr. Rachor served as the president and chief operating officer of Sonic Automotive, the third-largest automotive retailer in the United States. Rachor originally joined Sonic as vice president in charge of its mid-South region after the company’s 1997 acquisition of the Chattanooga, Tenn., car dealership Nelson Bowers. At the time, Mr. Rachor was chief operating officer at Nelson Bowers, a multi-franchise dealership group with annual revenues in excess of $200 million. After serving as a regional vice president at Sonic for two years, Mr. Rachor was promoted to executive vice president of retail operations and appointed to Sonic’s board of directors.

According to an SEC filing by Sonic Automotive, it appears Mr. Rachor chose to invest in Sonic’s stock-option plan, purchasing 82,250 shares in 1997, 20,000 shares in 1998 and 100,000 shares in 1999. According to a 2001 SEC filing by Sonic, Mr. Rachor earned $240,000 in 2000. The same SEC filing reveals Mr. Rachor received a bonus of $601,206 and $2,500 in other compensation in 2000.

Further investigation into Mr. Rachor’s professional history reveals:

• During the eight years Mr. Rachor worked for Nelson Bowers, he also served at different times as the general manager of Toyota, Saturn and Chrysler Plymouth Jeep Eagle dealerships.

• Mr. Rachor served as vice president of Toyota of Cleveland in Cleveland, Tenn., from 2002 to 2007. It appears he served as general manager of the dealership from 2001 to 2002.

• Mr. Rachor served as manager of Sonic-Volvo LV, L.L.C. in 2007. Sonic-Volvo LV, also known as Volvo of Las Vegas, markets and distributes old and new Volvo motor vehicles. The company is based in Las Vegas, Nev., and is a subsidiary of Sonic Automotive.

• Mr. Rachor is listed in public records as having been vice president of Sonic-Freeland, Inc., in Fort Myers, Fla., from 2002 to 2004. According to public records, this subsidiary of Sonic Automotive also operates under the name Honda of Fort Myers.

• Mr. Rachor served as the director of Cornerstone Acceptance Corp. in Charlotte, N.C., from 2002 to 2003. Cornerstone is a subprime finance company that provides automobile financing for individuals who do not normally qualify for traditional financing. In most cases, this involves regular subprime financing for those who have experienced repossessions, bankruptcies, judgments, liens, collection accounts or slow payment.

• Mr. Rachor was an assistant regional manager with American Suzuki Motor Corp. from 1987 to 1989.

• Mr. Rachor was a metro sales manager and a district sales manager with General Motors’ Buick Motor Division from 1983 to 1987.

There are no records of unlawful or dishonest activities while Mr. Rachor was involved with any of the employers or engaged in any business opportunities described above.

Possible Associates

Public records indicate Mr. Rachor was a business associate of Bryan Scott Smith (SSN: 356-58-XXXX). Mr. Smith served as Sonic Automotive’s vice chairman at the time Mr. Rachor was appointed to the position of executive vice president and chief operating officer at the same company.

Mr. Rachor is listed in public records as a lien holder for a 1996 Toyota pickup truck owned by Randy Eugene Wilson, age 48, in Chattanooga, Tenn. Further investigation shows Mr. Wilson is involved in at least two businesses in Chattanooga -- Randy Wilson Painting and Wilson Construction. Mr. Wilson filed bankruptcy in 1995 in association with the Wallpaper Gallery in Chattanooga, Tenn. Mr. Wilson’s bankruptcy does not indicate any wrongdoing on the part of Mr. Rachor. The information could have been garbled in the public record or Mr. Rachor’s name could be confused with his dealership affiliations. It is also possible Mr. Rachor is an acquaintance of Mr. Wilson and that he made a personal loan to Mr. Wilson to enable him to purchase the pickup.

No records of bankruptcy or financial irregularities were found for Mr. Rachor. In addition, searches in environmental, tax, insurance, and criminal law databases revealed no derogatory information.

Licenses/Criminal Record

Mr. Rachor has been issued at least two standard driver’s licenses in Hamilton County, Tenn. The first was issued on Jan. 6, 1995. The second license was issued on Aug. 18, 2004, and it will expire on Oct. 31, 2011.

It appears Mr. Rachor received a traffic violation for exceeding safe speed in 1987 in North Carolina. He pleaded responsible and paid the $75 court fine and $45 in court costs. No other criminal record was found.

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