Essex County Used Car Dealer Faces Allegations: Fraud, ‘Bait And Switch’

ESSEX COUNTY, NJ — Attorney General Christopher Porrino and the New Jersey Division of Consumer Affairs announced Wednesday that the state is seeking restitution and civil penalties from a Newark used car dealer alleged to have violated the state Consumer Fraud Act and a number of state regulations concerning the sale of motor vehicles.

According to a Complaint filed in Superior Court, Essex County, on June 19, Cars on Route 21 of Newark, LLC (“Cars on Route 21”), located on McCarter Highway, allegedly engaged in a host of “unconscionable and deceptive business practices,” including “bait and switch” schemes where the business advertised vehicles at low prices and then refused to sell the cars at the advertised prices.

Prosecutors said that the complaint was filed against the business and two individuals, David Pereira and Hiram Ortiz, both of whom are allegedly involved in the ownership and operation of the company.

“Buying a used car is among the most significant purchases many of us will ever make, and so the transaction needs to be transparent, not shady," Porrino said.

The complaint details 11 counts against Cars on Route 21, Pereira and Ortiz, alleging violations of the Consumer Fraud Act, the Regulations Governing Motor Vehicle Advertising Practices, the Regulations Governing Automotive Sales Practices, the Used Car Lemon Law and/or the Used Car Lemon Law Regulations.

The complaint alleged:

“Cars on Route 21 allegedly misrepresented the price of used motor vehicles, failed to include required statements about consumer costs, failed to include the actual odometer reading of motor vehicles in advertisements and failed to disclose prior damage to a vehicle that required substantial repair and body work… In addition, on at least one occasion, Cars on Route 21 allegedly misrepresented the fees charged to a consumer and told a consumer that a vehicle would pass inspection when the car was so damaged that it could not pass.”

The complaint also alleged that the company didn’t submit required documentation and the total sum of administrative fees collected from customers who purchased used vehicles between 2010 and 2016.

The complaint seeks to enjoin Cars on Route 21, Pereira and Ortiz from “engaging in deceptive practices and calls for the business to restore any money or real or personal property acquired by unlawful and deceptive activity.”

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