motor home : LAWSUIT SEEKS TO SHUT DOWN MOTOR HOME DEALER
Attorney General Eliot Spitzer today announced a lawsuit seeking to permanently shut down a Steuben County motor home dealer accused of defrauding consumers through various illegal financial dealings.
Gordon A. Hakes, owner of Painted Post Car Mart Truck and R.V. Inc., was served with a lawsuit alleging consumer fraud, deceptive business practices, false advertising, and operating without a dealer license.
"This dealer faces serious consequences for the unscrupulous business practices alleged in the complaint," Spitzer said. "My office will prosecute this case to the fullest extent of the law and ensure that justice is served and victims are compensated."
In the past two and a half years, over 30 consumers are alleged to have been defrauded by Hakes. According to the complaint, Hakes has been alleged to have:
Failed to deliver motor homes paid for by consumers. These consumers have lost not only their deposits, but are now being dunned to make payments on loans for vehicles not in their possession;
Accepted trade-ins as partial payment for the purchase of a new motor home, but failed to pay off the outstanding balance of the trade-in's loan, resulting in threats of debt collection proceedings against the former owner and damaging his/her credit record;
Falsely held out for sale certain new motor homes to consumers which could not be delivered because the manufacturer of those motor homes, the MHC Group, Inc., had been defunct for years. The investigation further revealed that Hakes was the owner of the California-based MHC Group, Inc.;
Submitted loan applications on behalf of consumers without their knowledge or consent and kept the proceeds of the loan;
Convinced individuals to trade-in their vehicles on consignment and then pocketed the proceeds of the sale, forcing consumers to continue to pay on loans for vehicles sold to other customers. In instances where Hakes remitted the proceeds to the consumer/seller, he is alleged to have kept the difference between the established minimum acceptable price and the price paid by the buyer; and
Failed to timely submit documentation to the State Department of Motor Vehicles (DMV), forcing consumers to wait months to receive their titles and registrations, resulting in delays in consumers' ability to drive their motor homes. Some consumers have never received their titles or registrations.
http://www.oag.state.ny.us/press/2004/may/may26a_04.html
Gordon A. Hakes, owner of Painted Post Car Mart Truck and R.V. Inc., was served with a lawsuit alleging consumer fraud, deceptive business practices, false advertising, and operating without a dealer license.
"This dealer faces serious consequences for the unscrupulous business practices alleged in the complaint," Spitzer said. "My office will prosecute this case to the fullest extent of the law and ensure that justice is served and victims are compensated."
In the past two and a half years, over 30 consumers are alleged to have been defrauded by Hakes. According to the complaint, Hakes has been alleged to have:
Failed to deliver motor homes paid for by consumers. These consumers have lost not only their deposits, but are now being dunned to make payments on loans for vehicles not in their possession;
Accepted trade-ins as partial payment for the purchase of a new motor home, but failed to pay off the outstanding balance of the trade-in's loan, resulting in threats of debt collection proceedings against the former owner and damaging his/her credit record;
Falsely held out for sale certain new motor homes to consumers which could not be delivered because the manufacturer of those motor homes, the MHC Group, Inc., had been defunct for years. The investigation further revealed that Hakes was the owner of the California-based MHC Group, Inc.;
Submitted loan applications on behalf of consumers without their knowledge or consent and kept the proceeds of the loan;
Convinced individuals to trade-in their vehicles on consignment and then pocketed the proceeds of the sale, forcing consumers to continue to pay on loans for vehicles sold to other customers. In instances where Hakes remitted the proceeds to the consumer/seller, he is alleged to have kept the difference between the established minimum acceptable price and the price paid by the buyer; and
Failed to timely submit documentation to the State Department of Motor Vehicles (DMV), forcing consumers to wait months to receive their titles and registrations, resulting in delays in consumers' ability to drive their motor homes. Some consumers have never received their titles or registrations.
http://www.oag.state.ny.us/press/2004/may/may26a_04.html
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