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Local car dealers accused of consumer fraud by AG's office

Reported by: Joe Ducey
Email: jducey@abc15.com
Last Update: 6/29/2009 6:44 am
Cars for sale along the 'Motor Mile'
Cars for sale along the 'Motor Mile'
Video Click the play button on the video window to the right to see the story

PHOENIX - A consumer fraud lawsuit has been filed against the owners and managers of two used motor vehicle dealerships in the Valley.

Attorney General Terry Goddard and Superintendent of the Arizona Department of Financial Institutions Felecia A. Rotellini filed the suit against LD Automotive Group in Cave Creek and Phoenix-based 2020 Automotive.

The suit centers on the use of deceptive advertising techniques.

The lawsuit alleges that Leonard Diaz, Abraham Bekelian and Patrick Beck, owners of 2020 Automotive in Phoenix, and Leonard Diaz, owner of LD Automotive Group in Cave Creek, violated the Arizona Consumer Fraud Act by using deceptive advertising.

The suit also alleges violations of the Motor Vehicle Time Sales Disclosure Act by Diaz.

A 2008 ABC15 Investigation centered on 20/20 Automotive on East Bell in Phoenix.

After complaints, we found the dealership advertising unbelievably low prices, like a 2007 Chevy Cobalt, $4,000 below Blue Book value.

We made numerous appointments by phone to check on the price.

We then set up meetings with a salesperson.

Each time we arrived at 20/20 Automotive, the salesperson told us the car was sold, but he had a more expensive car to show us.

Advertising is at the heart of an Arizona Attorney General lawsuit against Phoenix-based 20/20 Automotive and LD Automotive group in Cave Creek.

The suit alleges among other things, the used car dealers refused to sell some cars at the price advertised, that salespeople required expensive dealer add-ons, and that the dealership failed to disclose a fuel fee would be added to the price.

The owner of LD Automotive Group says he didn't know about the lawsuit and therefore will not comment. 

Calls to 20/20 Automotive on Friday were not returned.

Here's the full ABC15 Investigation into 20/20 Automotive from July of 2008.



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