Dubuque
Auto Dealer Ordered to Forfeit Dealer's License
Consumer
Protection Division alleged that Robert Frank failed to disclose prior
damage to vehicles.
Des Moines -- Robert Frank, a Dubuque auto dealer, has been
convicted and sentenced in Dubuque County District Court for failing
to inform customers about prior damage to used cars. The charges were
filed by the Consumer Protection Division of the Iowa Attorney General's
office.
Frank,
who pleaded guilty, was sentenced this week in Dubuque County District
Court to a Class D Felony of committing a fraudulent practice by completing
a false damage disclosure statement in the titling of a motor vehicle.
Frank's auto dealership was Cedar Hill Auto Sales of Dubuque.
On
Tuesday, District Court Judge Alan Pearson sentenced Frank to up to
five years in prison, with the prison term being suspended as long as
Frank complies with terms of probation. Frank was ordered by the Court
to surrender his motor vehicle dealer's license and is prohibited from
applying to the Department of Transportation for another dealer's license.
Bill
Brauch, Director of the Consumer Protection Division, said the criminal
charge was filed as a result of an investigation by the Attorney General's
Office and the State Department of Transportation. "Our investigation
focused on more than a dozen vehicles that were titled by Cedar Hill
Auto Sales without disclosing prior collision damage," Brauch said.
According
to documents filed in the case, the criminal charge was based on allegations
that Cedar Hill Auto Sales had purchased a damaged 1992 Chrysler at
auction from Southern Iowa Salvage Pool in October of 1995. State Farm
Insurance Company had obtained the vehicle from its insured after the
vehicle had sustained more than $7,000 in collision damage. Cedar Hill
Auto Sales repaired the damaged vehicle and, in January of 1996, obtained
title to the vehicle without reporting the prior damage as required
by Iowa law.
"Buyers
are entitled to know about prior damage to vehicles" Brauch said. "The
value of a vehicle drops substantially after a major collision. Unsuspecting
consumers and even car dealers are often stuck with unsafe or defective
vehicles that are worth far less than they paid when damage to the vehicle
is concealed."
Customers
who wish to file consumer complaints against Cedar Hill Auto Sales of
Dubuque may contact the Consumer Protection Division of the Iowa Attorney
General's Office at 515-281-5926.