CarMax Engaged in Fraudulent Dealing with Vehicles That Failed to Pass Emission Standards
According to a new nationwide class action lawsuit, CarMax, one of the country’s largest automobile dealerships, is accused of illegally selling vehicles that do not match federal emissions regulations and issuing title certificates to unregistered dealers fraudulently.
A class action lawsuit was filed by Alexandra Reid against CarMax Auto Superstores, Inc. and its west coast branch in a federal court in California on Monday, citing fraud and violations of California business law.
CarMax is accused of engaging in deceptive behavior by selling cars as retail to unregistered dealers under a facade of wholesale dealer-to-dealer transactions.
Plaintiff Reid states she became a victim of the scam in May 2020 when she decided to buy an automobile from private seller Isaac Lee, who is also the partner of unlicensed dealer Sandra Wellington.
Alexandra Reid v. Carmax Auto Superstores, Inc.
As per the lawsuit, when CarMax obtained the automobile, it was mechanically incapable of passing the California-mandated emissions test. Thus, it could not be offered to the general public and could only be sold wholesale to a licensed dealer.
However, Reid asserts that CarMax transferred the vehicle illegally to Sandra Wellington of ‘Genuine Automotive Enterprises,’ who lacked and were unable to present a valid dealer license.
CarMax forged the dealer-only portion on the back of the title certificate to complete the transaction fraudulently as a bulk transaction.
Reid claims that CarMax could not file the necessary papers and decided to opt for different paperwork. This confused the content of the transaction, giving it the appearance of retailing and so covering up the illegalities, the class action states.
Furthermore, this kept the unregistered dealers off the DMV’s radar and enabled them to victimize the plaintiff successfully.
Additionally, when she purchased the vehicle from Isaac Lee, she was presented with a forged emissions test dated May 23, 2020, as part of the transaction. Within 20 miles from purchasing, the “check engine” light illuminated, forcing her to take the vehicle in for service.
Upon discovering she had been a victim of fraud, the plaintiff quickly filed suit with the California Bureau of Automotive Repair, which discovered the illegal emissions test and summoned the mechanic.
Reid says she immediately notified CarMax that they had sold the car fraudulently and informed them that this had occurred with multiple vehicles, as she learned on Facebook. Moreover, she adds that CarMax disregarded her concerns and claimed that the situation was addressed “internally.”
The class action lawsuit claims that CarMax violated its legal obligation to disclose possible illegal dealing even after the plaintiff provided evidence that the company assisted unregistered dealers and executed a fake emissions test.
Reid is suing for violations of the Unfair California Competition Law, Common Law Fraud, and Unjust Enrichment. She is seeking to represent anybody in the United States who acquired a vehicle sold by CarMax to unregistered dealers by fraudulent methods, as well as a California subclass.
On the other hand, CarMax defended itself against allegations that they intentionally offered faulty vehicles.
The company denied the charges, claiming that the customer who filed the class action lawsuit over automotive problems lacked proof to support the allegations that they attempted to pass off faulty vehicles as functional.
Editor’s Note on CarMax Fake Dealers & Emission Class Action Lawsuit 2021:
This article is written to inform you of the recent class action lawsuit filed against CarMax due to illegally marketing vehicles that do not match federal emission regulations and issuing title certificates to unregistered dealers fraudulently.
Case Name & No.: Alexandra Reid v. Carmax Auto Superstores, Inc., Case No. 2:21-cv-04815-MCS-MAR
Jurisdiction: U.S. District Court Central District of California
Products/Services: Automobile dealerships
Allegations: CarMax is illegally selling vehicles and issuing title certificates to unregistered dealers
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