Suzuki Dealer, District Manager, Indicted For Fraud

Derek Kreindler
by Derek Kreindler
suzuki dealer district manager indicted for fraud

Two high-volume Suzuki dealerships in South Carolina are at the center of a federal fraud case, as a dealer and Suzuki district manager are among those indicted on three counts of conspiracy to commit wire fraud.

Paul M. Gibson, who operated two Suzuki dealers in South Carolina, as well as Brian J. Sullivan, the Suzuki district manager responsible for Gibson’s stores and 8 other defendants, were indicted. The charges center on claims of false advertising and fraudulent loan documents.

Automotive News reports that

“Ads promised, among other things, that customers could drive a new Suzuki “for life” for payments of $99 per month or less, according to the indictment. Other ads said that customers could have a new car for six, nine or 12 months for minimal payments, trade in the car after a set term, “and obtain a new car at no cost,” the indictment alleged.

“…dealerships advertised low monthly payments, while staffers told customers that Suzuki would provide the dealership with funds to pay, on behalf of the customers, the difference between the higher monthly payments listed on retail installment sales contracts and the low promotional rates customers agreed to pay.

Customers who attempted to trade their vehicles in after the stated time period would attempt to do so only to find out that they couldn’t obtain a new car under the previously promised terms. The indictment also alleges that the dealership and its employees falsified loan documents, while telling customers to ignore the doctored papers

“…the contracts listed vehicle values far in excess of the market values of the cars in question. When customers asked about the inflated values and corresponding high monthly payments, the defendants told the customers to “totally disregard any of the numbers on the contracts because they would never be obligated to pay anything more than the agreed, low monthly promotional amounts,” the indictment said.”

Should the defendants be found guilty, they could each face a maximum of 60 years in prison and a $750,000 fine.

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  • Tkel Tkel on Sep 20, 2012

    A Suzuki dealer in the Kansas City market used that promotion a few years ago. He moved a lot of iron until the customers found out there ain't no Santa Claus and went to the AG.

  • Beacio_mo Beacio_mo on Sep 25, 2012

    This article reminded me of soo many customer complaints I received when I was a customer relations rep for Suzuki. I am not surprised at all to hear this as at one point we received at least a few calls per day for several months. I'm glad to hear they are going to pay the price for all the trouble they caused

  • Alan I do believe that traffic infringements penalties based on income will affect those who are financial able to flout safety regulations.When I drive above the posted speed limit I assess my situation using probability. If I'm confronted with a situation where time is of more value to me than speed I will speed if I assess the probability of a fine to be quite low. I can afford the fine, what I can't afford is the loss of points on my drivers licence.In Australia (12 points in QLD and all States have a point system) we have a points system attached to your drivers licence. An open drivers licence is granted 12 points every 3 years. So, if you receive an infringement for exceeding the speed limit it takes 3 years for the points to be removed. I generally get caught once every 2 years.I think a points system would be a fairer system over a system based on income. Its about retaining your licence and safety, not financial gain by the government.As you can see below it wouldn't take long for many US drivers to lose their drivers licence.[h2]Current penalties for individuals caught speeding[/h2]InfringementPenalty amountDemerit pointsLess than 11km/h over the speed limit$287. 1 pointAt least 11km/h but not more than 20km/h over the speed limit$431. 3 pointsMore than 20km/h but not more than 30km/h over the speed limit$646. 4 pointsMore than 30km/h but not more than 40km/h over the speed limit$1,078. 6 pointsMore than 40km/h over the speed limit$1,653. 8 points and 6 month suspension
  • Wjtinfwb Instead of raising fines, why don't the authorities enforce the laws and write tickets, and have judges enforce the penalty or sentence of a crime. I live across the street from an Elementary School on a 4-lane divided state highway. every morning the cop sits in his car and when someone sails through the School Zone well above the 10 mph limit, he merely hits his siren to get their attention but that's it. I've never, in 5 years, seen them get out of the car and actually stop and driver and confront them about speeding. As a result, no one pays attention and when the School Zone light is not lit, traffic flies by at 50-60 mph in the 45 zone. Almost no enforcement occurs until the inevitable crash, last year some zoned out girl rolled her beater Elantra 3 times. On a dry, straight, 4 lane road with a 45 mph limit. I'm no Angel and have a heavy foot myself. I've received my share of speeding tickets, lots of them when younger. Traffic enforcement in most locales has become a joke these days, jacking prices because someone has a higher income in as asinine as our stupid tax policy and non-existent immigration enforcement.
  • Jeff S If AM went away I would listen to FM but since it is insignificant in the cost to the car and in an emergency broadcast it is good to have. I agree with some of the others its another way to collect money with a subscription. AM is most likely to go away in the future but I will use AM as long as its around.
  • BEPLA I think it's cool the way it is.If I had the money, time and space - I'd buy it, clean it up, and just do enough to get it running properly.Then take it to Cars and Coffee and park it next to all the newer Mustangs.
  • Dave M. I suppose Jethro’s farm report comes via AM, but there’s a ton of alternative ways to get that info. Move forward people. Progress is never easy.