Indiana AG Lawsuit Against LaGrange Co. Car Dealer
Indiana AG Lawsuit Against LaGrange Co. Car Dealer
Indiana AG Lawsuit Against LaGrange Co. Car Dealer
Clerk
LaGrange Superior Court LaGrange County, Indiana
STATE OF INDIANA
IN THE LAGRANGE COUNTY SUPERIOR/CIRCUIT COURT
STATE OF INDIANA,
Plaintiff,
COMPLAINT
v.
FOR INJUNCTION,
FLEXIBLE AUTO SALES LLC RESTITUTION, TREBLE
DAMAGES, CIVIL PENALTIES,
and
AND COSTS
JOHN ALLEN, individually and
doing business as FLEXIBLE AUTO
SALES LLC,
Defendants.
I. INTRODUCTION
this civil action under the Indiana Deceptive Consumer Sales Act, Indiana
Code § 24-5-0.5-1 et seq., the Indiana Odometer Act, Ind. Code § 9-19-9-1 et
seq., the Federal Odometer Act, 49 U.S.C.A. § 32701 et seq., and the Motor
Vehicle Unfair Practices Act, Ind. Code § 9-32-13 et seq., for injunctive relief,
consumer restitution, treble damages, civil penalties, costs, and other relief.
2. The Defendant, Flexible Auto Sales LLC, owned and operated by John Allen,
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consumers. Flexible Auto Sales LLC and John Allen purchased the vehicles
mainly from various auto auctions. The auto auctions reported each vehicles’
mileage to vehicle history reporting services and provided Flexible Auto Sales
LLC with odometer disclosure statements and titles for each vehicle.
Between the time Flexible Auto Sales LLC purchased the affected vehicles
from the auctions and the time Flexible Auto Sales LLC sold the vehicles to
Flexible Auto Sales LLC also falsified mileage readings on documents such as
back odometers by a combined total of over three million miles on the known
vehicles. Flexible Auto Sales LLC and John Allen’s misrepresentations and
Federal Odometer Act, and the Indiana’s Motor Vehicle Unfair Practices Act
II. PARTIES
3. The plaintiff, the State of Indiana, is authorized to bring this action and to
seek injunctive and other statutory relief under Ind. Code § 24-5-0.5-4(c) and
49 U.S.C. § 32709(d).
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4. Defendant Flexible Auto Sales LLC is an Indiana limited liability company
vehicles to Indiana consumers under the business name Flexible Auto Sales
6. John Allen controlled and directed the affairs of Flexible Auto Sales LLC at
the time of the transactions identified in this Complaint and was active in its
advertising, sales, and other practices. John Allen used Flexible Auto Sales
7. Flexible Auto Sales LLC and John Allen will collectively be referred to as
III. FACTS
8. The table below identifies the vehicles Flexible Auto Sales sold to specific
of each vehicle at the time of Flexible Auto Sales’ sale of the vehicle to each
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consumer (“Sale to Consumer Mileage”), as well as the date of the sale of the
8.2. Matthew Wengerd 2004 Dodge Ram 1500; 229,139 146,000 4/15/2019
VIN 1D7HU18D44J263215
8.7. Tommy Haviland Jr. 2006 Chevrolet Trailblazer; 195,084 150,178 2/22/2020
VIN 1GNET16M466130034
8.9. Brian & Erica Branton 2006 Chevrolet Trailblazer; 204,685 143,031 5/18/2020
VIN 1GNDT13S462203344
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8.14. Caleb Detweiler 2002 Jeep Liberty; 168,340 144,340 12/2/2020
VIN 1J4GL58K32W284436
8.20. Andrew & Tonya Cox 2007 GMC Yukon; 210,290 140,290 3/20/2021
VIN 1GKFK163X7J153795
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8.30. Oran Miller 2007 Pontiac Torrent; 176,026 129,026 6/19/2021
VIN 2CKDL73F576097059
8.35. Jose Tomas Resinos 2005 Chevrolet Trailblazer; 240,498 140,499 8/20/2021
VIN 1GNDT13SX52268908
9. Flexible Auto Sales acquired its inventory from multiple sources, including
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10. Prior to selling a vehicle, GMAA, IAA and GKAA visually inspect each
11. Flexible Auto Sales received an odometer disclosure statement for each
the time of acquisition by Flexible Auto Sales. The mileage of each vehicle at
12. Flexible Auto Sales altered, or caused to be altered, the odometer of each
13. As a result, when each vehicle was sold by Flexible Auto Sales, the odometer
than when Flexible Auto Sales acquired the vehicle. The odometers on each
vehicle listed a significantly lower mileage than the vehicle had actually
traveled. The approximate altered mileage of each vehicle at the time it was
incorrect mileage of each vehicle was the true mileage of the vehicle.
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15. Flexible Auto Sales altered vehicle mileage listings on documents, such as
16. The purchasing consumers referenced in Paragraph 8 were not aware of the
true mileage of each vehicle at the time of the consumers’ respective purchase
dates.
17. The Plaintiff issued Civil Investigative Demands 22-062 and 23-005 to
18. In response to Civil Investigative Demands 22-062 and 23-005, Flexible Auto
behalf of Flexible Auto Sales, verified under oath that the documents
19. The documents provided by Flexible Auto Sales had been tampered with and
20. Flexible Auto Sales provided the Plaintiff with purported copies of the
odometer disclosure statements it received from GMAA, IAA and GKAA for
disclosure statements for the same vehicles directly from GMAA, IAA and
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statements obtained by the Plaintiff directly from GMAA, IAA and GKAA.
Vehicle titles provided by Flexible Auto Sales were similarly altered to lower
21. While all the vehicles referenced in Paragraph 8 share a substantially similar
fact pattern, for illustrative purposes the following is specific example of the
21.1. Flexible Auto Sales purchased the 2008 Malibu from GMAA on
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21.3. Similarly, GMAA provided Flexible Auto Sales with a title to the
2008 Malibu. In two locations on the title, the mileage for the 2008
21.4. Flexible Auto Sales provided a copy of the title for the 2008 Malibu
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21.5. The Carfax report for the 2008 Malibu shows GMAA reported a
21.6. The next reported mileage on the Carfax report for the 2008
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22. Flexible Auto Sales’ tampering with odometers and altering documents such
23. Flexible Auto Sales knowingly committed the actions described in this
Complaint.
COUNT I:
VIOLATIONS OF THE DECEPTIVE CONSUMER SALES ACT-
MISREPRESENTING THE MILEAGE OF MOTOR VEHICLES
25. Flexible Auto Sales regularly engages in “consumer transactions” under Ind.
Code § 24-5-0.5-2(a)(1).
27. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
documents.
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COUNT II:
VIOLATIONS OF THE FEDERAL ODOMETER ACT- MISREPRESENTING THE
MILEAGE OF MOTOR VEHICLES
29. Flexible Auto Sales, with intent to defraud, misrepresented the mileage on
COUNT III:
VIOLATIONS OF THE INDIANA ODOMETER ACT- MISREPRESENTING THE
MILEAGE OF MOTOR VEHICLES
31. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
COUNT IV:
VIOLATIONS OF THE DECEPTIVE CONSUMER SALES ACT- ALTERING
ODOMETERS
33. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
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COUNT V:
VIOLATIONS OF THE FEDERAL ODOMETER ACT- ALTERING ODOMETERS
35. Flexible Auto Sales, with intent to defraud, altered odometers on motor
U.S.C.A. § 32703(2).
COUNT VI:
VIOLATIONS OF THE INDIANA ODOMETER ACT- ALTERING ODOMETERS
37. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
COUNT VII:
VIOLATIONS OF THE DECEPTIVE CONSUMER SALES ACT- ALTERING
DOCUMENTS RELATED TO THE PURCHASE AND SALE OF A MOTOR
VEHICLE
39. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
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COUNT VIII:
VIOLATIONS OF THE FEDERAL ODOMETER ACT- ALTERING DOCUMENTS
RELATED TO THE PURCHASE AND SALE OF A MOTOR VEHICLE
41. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
COUNT IX:
VIOLATIONS OF THE INDIANA ODOMETER ACT- ALTERING DOCUMENTS
RELATED TO THE PURCHASE AND SALE OF A MOTOR VEHICLE
43. Flexible Auto Sales committed unfair and deceptive acts, omissions, and
COUNT X:
KNOWING VIOLATIONS OF THE DECEPTIVE CONSUMER SALES ACT
45. Flexible Auto Sales committed the unfair and deceptive acts asserted in this
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COUNT XI:
INCURABLE DECEPTIVE ACTS
47. The unfair and deceptive acts asserted in this Complaint are incurable
COUNT XII:
VIOLATIONS OF THE MOTOR VEHICLE UNFAIR PRACTICES ACT
49. Flexible Auto Sales committed deceptive and unfair acts and practices
altering the mileage on documents related to the purchase and sale of motor
vehicles.
V. RELIEF
50. The State requests the Court enter judgment against the Defendants,
Flexible Auto Sales LLC and John Allen, for the relief described in
51. The State seeks a permanent injunction, under Ind. Code § 24-5-0.5-4(c)(1)
and 49 U.S.C. § 32709(d)(1)(A), enjoining Flexible Auto Sales LLC and John
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Allen, and the agents, representatives, employees, successors, and assigns of
each, from:
vehicle;
and
24-5-0.5-3(a).
52. The State seeks consumer restitution, under Ind. Code § 24-5-0.5-4(c)(2) and
53. The State seeks treble damages, under 49 U.S.C.A. § 32709(d)(1)(B) and 49
U.S.C.A. § 32710(a), in the amount of three (3) times the actual damages or
ten thousand dollars ($10,000), whichever is greater, for the benefit of each
Attorney General.
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54. The State seeks costs, under Ind. Code § 24-5-0.5-4(c)(4), awarding the Office
55. The State seeks civil penalties, under Ind. Code § 9-19-9-7, on Counts III, VI
and IX of this Complaint, for Flexible Auto Sales’ violations of the Indiana
56. The State seeks civil penalties, under Ind. Code § 24-5-0.5-4(g), on Count X of
this Complaint, for Flexible Auto Sales’ knowing violations of Ind. Code § 24-
57. The State seeks civil penalties, under Ind. Code § 24-5-0.5-8, on Count XI of
this Complaint, for Flexible Auto Sales’ incurable deceptive acts, payable to
the State of Indiana, in the amount of five hundred dollars ($500.00) per
violation.
58. The State seeks all other just and proper relief.
Respectfully submitted,
THEODORE E. ROKITA
Indiana Attorney General
Attorney No. 18857-49
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Office of Attorney General
Indiana Government Center South
302 West Washington St., 5th Floor
Indianapolis, IN 46204
Telephone: (317) 234-6784
Fax: (317) 233-4393
[email protected]
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