Mad Hatter ex-owner now faces theft charges

A former Lexington business owner facing voyeurism and stalking charges was arrested for allegedly driving a stolen car while he was out on bond.

Terry A. Grossman, 55, was arrested Jan. 1 on a charge of receiving stolen property under $10,000. A state police trooper reported that he saw Grossman driving a stolen 2001 Volkswagon Beetle Dec. 25. Grossman was previously arrested Dec. 18 after he allegedly attempted to break into the Crescent Avenue home of several female University of Kentucky students. Police said he had also recorded nude images of the residents sporadically since August. He has pleaded not guilty to charges of stalking, video voyeurism, burglary and narcotics possession.

Grossman is the former owner of Mad Hatter hat shop, a downtown staple until it was sold to make way for the stalled CentrePointe project. He did not return calls seeking comment.

Investigators say the Volkswagon was stolen during a burglary at Newtown Crossing apartments just before 1 p.m. Dec. 25, according to Grossman's arrest warrant.

Kentucky State Trooper James Collins, a resident of the apartment complex, saw the Volkswagon on Versailles Road later that day while he was in his personal vehicle and began trailing it, the warrant states. Collins said he knew it was the stolen car because he was familiar with seeing the car, which had a pink whale decal in the right corner of the back window, in the parking lot, according to the arrest warrant.

Collins then called Lexington police.

The trooper was aware of pending burglary charges against Grossman, according to the arrest warrant. Collins said in the warrant that the two burglaries were similar, so he contacted state police post 12 to see a picture of Grossman.

Grossman "was positively identified as the person who was driving the VW," Collins wrote in the arrest warrant.

The arrest warrant says Grossman denied any involvement in the theft of the Volkswagon. Grossman was released that day on a third-party bond. He is scheduled to be arraigned Wednesday in Fayette District Court.

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