Broome County Auto Fraud Case Settled

auto fraudAuto dealership owner, Thomas Gerow Gales, was recently charged with auto fraud. He has defrauded more than 27 customers of his dealership and must refund about $96,000. The owner of Gerow’s Auto Sales in Deposit, has agreed to pay a judgment of over $101,000. The judgment includes consumer restitution, civil penalties and court costs. The settlement preventing Gerow Gales to own an auto sales business in New York State unless he posts a $200,000 performance bond is pending court approval in Broome County State Supreme Court.

Legal papers which has been covering this auto fraud reveal that the auto dealership promised customers who intended to purchase a vehicle at the dealership to pay off the outstanding loan if they trade-in their old vehicles at the dealership. However they failed to repay the outstanding loan and later sold the traded-in vehicles to other consumers, who were not able to register the vehicle with the Department of Motor Vehicles and drive it.

The investigation also revealed that customers paid Gerow Auto Sales more than $1,600 for extended warranties, but the dealership never submitted the papers to the warranty company, thus leaving the customers without warranty coverage.

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