FOR IMMEDIATE RELEASE
NEWS ADVISORY
February 26, 2015
For More Information, contact:
Luther Strange
Mike Lewis (334) 353-2199
Alabama Attorney General
Joy Patterson (334) 242-7491
Claire Haynes (334) 242-7351
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AG STOPS ELMORE COUNTY USED CAR DEALER
FROM CONTINUING TO DEFRAUD CUSTOMERS
(MONTGOMERY) — Attorney General Luther Strange has obtained a court order
to stop an Elmore County used car dealer from continuing to defraud Alabama
consumers and businesses.
Elmore County Circuit Judge Sibley G. Reynolds granted the Attorney General’s
request for a temporary restraining order and to seize the property of Quality Used
Cars and its associate Preowned Automotive, operated by Claton (or Clayton) and
Connie Reeves since 2009. Also named in the Attorney General’s lawsuit are Monecia
Brown, daughter of Claton and Connie Reeves, and Brown’s husband Christopher
Robinson, for their actions as employees or agents of the dealer, which is located at 6155
Elmore Road in Elmore, Alabama. A preliminary injunction hearing is set for March 5.
“The State’s highest priority is ensuring no more parties are harmed by Quality’s
business practices. If possible, the State also wishes to secure relief for those already
victimized,” the Attorney General said in his motion to the Judge. He said the car
dealers have been actively defrauding consumers, banks, credit unions and other car
dealerships.
The Attorney General alleged that Quality “has a consistent practice of entering
into deals and failing to fulfill its end of the bargain. Quality has accepted vehicle trade-
ins under the condition of paying off existing liens but then failed to do so. And it has
then sold these very vehicles to other customers without disclosing the liens attached to
them, while charging but not remitting State sales taxes. Quality has acquired other
vehicles via false pretenses and bad checks, which has led to credit unions, banks, and
other car dealers losing tens of thousands. Finally, Quality has failed to obtain, let lapse,
or had revoked such quality standards as a surety bond, a State business license, and
from the Department of Revenue, its Dealer License and Designated Agent status. Thus,
any deal Quality makes is corroded from the start.”
In a civil complaint also filed with the Court, Attorney General Strange accuses
the car dealer of 18 counts of violating the Alabama Deceptive Trade Practices Act as
well as a 19th count of a Department of Revenue violation. He gives examples of three
particular fraudulent transactions:
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501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.alabama.gov Page 2 of 2
- A woman traded in her Ford Ranger vehicle to purchase a car from
Quality with the agreement that Quality would pay off her $3,900 lien
on the Ford Ranger. This is a standard practice for car dealers who
accept a trade-in that has a lien. She began to get notices that her loan
had not been paid, and over the next 22 months the car dealer only
sporadically made payments in which the checks bounced, were late,
or did not cover the payment amount. Not only did this damage the
woman’s credit history, but the credit union filed a lawsuit against
her. It was only after she reported the matter to the Elmore County
Sheriff’s Office, and the Reeves were threatened with arrest, that
Quality finally paid off the loan nearly two years later. In addition to
the harm caused to the consumer, Quality caused the credit union
substantial administrative and legal costs to collect what was owed.
- Another woman paid $4,700 for the same Ford Ranger. Knowing
there was the unpaid lien on the vehicle, Quality falsely represented
that it had the title and that there was no lien. - During her purchase of a vehicle from an Alabaster car dealer, Connie
Reeves was asked for her regulatory license and her Alabama Sales
Tax License. She claimed that she had left them in Elmore County,
wrote a check for $16,200, and left with the car and its title. This
check, and a subsequent second check, bounced. At this time, they
have not yet paid for the vehicle.
In addition to the alleged violations of the Deceptive Trade Practices Act, Quality
has paid no sales tax since 2012. The Attorney General’s complaint states that for “over
70 months Quality has sold multiple vehicles at retail and collected and underpaid at
least $53,072.88 in sales tax, which it itemized on issued bills of sale. This sales tax,
which consumers paid in addition to the price of their chosen vehicle, never made it to
the (Revenue) Department.” Additional interest and penalties in the amount of $30,923
also is owed. It is noted that these figures are estimates based upon only those
transactions which are known. The Revenue Department sent numerous notifications
to Quality.
“Quality has continued to sell vehicles and do business despite lacking nearly
every required license or prerequisite for doing so,” the complaint alleges. Its Alabama
Dealer License was revoked around August of 2014 and its status as “designated agent”
was revoked in February of 2014. It has paid other authorized agents to use their
credentials to reach the restricted access program used to process title applications. “In
sum, Quality’s entire operation is unlawful.”
Attorney General Strange commended his Consumer Litigation Section, noting
in particular Assistant Attorneys General Kyle Beckman and Noel Barnes, Assistant
Attorney General Glen Power of the Revenue Department, and Special Agents of his
Investigations Division. He also thanked the Elmore County Sheriff’s Office.
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