Union County Fraud: Car Dealership Duped Customers For 10 Years, Court Says

RAHWAY, NJ — A car dealership in Rahway defrauded customers for nearly 10 years, the New Jersey Attorney General's Office said on Monday.

The state obtained a final judgment on Jan. 20 for more than $840,000, including a $793,500 civil offense, against Federal Auto Brokers, Inc. The business operates as "BM Motor Cars" in Rahway.

The Superior Court of New Jersey found that BM didn't disclose "critical" information to buyers, held back pricing information in advertisements, and violated a 2018 Consent Order with the Division of Consumer Affairs.

Officials said the business acted against both state and federal consumer protection laws, including the New Jersey Consumer Fraud Act.

"Consumers have the right to clear, truthful information," Acting Attorney General Jennifer Davenport said. "We will always stand up for our consumers when corporations seek to defraud them."

In 2018, a Consent Order fine of $55,899 was placed on BM Motor Cars for selling "risky "gray market" vehicles" without proper disclosures. "Gray market" cars are imported without authorization and carry the risk of safety or emissions violations.

BM continued to defraud others and produced dozens of additional consumer complaints, prompting a lawsuit from the state. The dealership was found to have committed hundreds of violations, including 511 in just a two-month period, the Attorney General's Office said.

These violations, along with disregard for the 2018 Consent Order, displayed a "pattern of non-compliance" and a "lack of good faith and observance of fair dealing."

Along with hiding prices and gray market vehicle conditions, BM failed to disclose odometer readings and certain known defects, officials said.

The Superior Court granted the State of New Jersey's request for entry of injunctive and monetary relief. Along with the $793,500 civil fine, BM was ordered to reimburse the State $49,276.24 for fees associated with bringing the case.

MORE FROM PATCH: Man Hit By His Own Car During Burglary At Fast Food Restaurant In Union County: Police

HAVE A STORY IDEA OR NEWS TO SHARE? Contact Editor Eddie Callahan at edward.callahan@patch.com to connect with Patch in your area.