Probe Continues Into Shuttered Car Dealership

ST. CHARLES, IL -- A state investigation continues into three St. Charles-area car dealerships accused of fraudulent activity. There are more than 500 cases currently under investigation by the Illinois Secretary of State Police related to transactions made at the now-shuttered Nissan of St. Charles and the Pre-Owned of St. Charles dealerships in St. Charles and West Chicago, Deputy Director Elmer Garza told the Daily Herald this past week.

The St. Charles dealership accused of fraudulent activity was shut down by the state in February as authorities began their probe into complaints by hundreds of customers. Customer Daniel Wooters of Lockport told NBC Chicago he traded in his 2014 Pathfinder to Nissan of St. Charles last year for a new 2018 Pathfinder. Now, he's left paying car loans for both cars after the dealership failed to pay off his trade-in loan, according to the March report.

Since November, he's paid $4,500 on his car loans and isn't sure if he will get his money back. Several other customers have lodged similar complaints.

• 2 Car Loans, 1 Car: Dealership Shut Down Amid Fraud Complaints

The Nissan of St. Charles dealership, located at 2535 E. Main Street in St. Charles, was shut down by the state on Feb. 1, according to NBC Chicago. Garza told NBC Chicago in March that authorities are investigating 500 cases "that clearly show [Nissan of St. Charles] didn't transfer the title or plates for these vehicles."

Garza told the Daily Herald this past week that the dealer is supposed to transfer a vehicle's title to the person who purchased the vehicle or the bank that is financing the vehicle within 20 days after the transaction. This did not happen during hundreds of transactions through the dealership in 2018 and 2019, Garza said.

"We have over 500 consumers that have not received the title and plates for their vehicle," Garza told the Kane County Chronicle this past week. "There's more than just the failure to transfer side of it. They also didn't pay off the liens on the trade-ins. When they traded in a vehicle and purchased a new vehicle, that trade-in balance wasn't paid off."

It's a rarity to see so many complaints against one dealership.

"In the 13 years that I've been here, this is probably one of the largest," Garza told the Kane County Chronicle.

The Daily Herald reports those stuck paying two loans can apply for relief through the state's attorney general's office's Dealer Trust Recover Fund, which will pay off the lien on the traded-in vehicles. Four applications will be considered this month by the fund's board by those who bought vehicles from the dealership, according to the article.

Affected customers of Nissan of St. Charles can also call a hotline set up by the state at 630-693-0551 ext. 852 or e-mail rford1@ilsos.gov.

More via the Daily Herald and Kane County Chronicle