Prominent local businessman arrested in Austin, accused of arson

AUSTIN (KXAN) — A prominent Austin businessman and founder of Continental Automotive Group, or CAG, was arrested Thursday on charges of Felony Arson and a State Jail Felony offense of Burglary.

Dorsey Bryan Hardeman, 75, is accused of starting a fire at a downtown Austin building on Sunday, according to an arrest affidavit.

KXAN is working to find representation for Hardeman. When that information becomes available, this story will be updated if a response is received.

The affidavit said the Austin Fire Department responded to a building fire at the former Mellow Johnny’s Bike Shop on 400 Nueces St. on Feb. 25.

Once the fire was contained, fire investigators determined the incident to be incendiary and found metal shavings on the ground below the door suggesting the door lock had been drilled out, records state.

The affidavit states fire investigators watched video surveillance from the building, which showed an older man entering the building with a red container consistent with a plastic gas tank.

Multiple cameras inside the building show a man pouring liquid from the red container and dropping multiple matches on the ground, the affidavit said.

Records show the man arrived at the location in a white 4-door Mercedez SUV.

Investigators interviewed the owner of Mellow Johnny’s Bike Shop who told AFD Hardeman was the owner of the property next door and had previously asked about purchasing the property at 400 Nueces St.

Investigators learned Hardeman was identified as a person of interest in a second arson investigation from an incident that happened five days prior on Feb. 20, documents state.

A witness in the case was provided photographs from the surveillance video who said “with 100% certainty” that the vehicle belonged to Hardeman. Investigators believe the photo showed the same person coming out of the building with a red container.

CAG has six car dealerships in Austin including a Mercedes-Benz dealership, as well as two dealerships in San Juan and one in Dallas, according to its website.

According to Travis County jail records, personal bonds have been set at $40,000 for the Arson charge and $10,000 for the burglary charge.

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