Schlanger & Schlanger files auto fraud lawsuit against BMW of the Hudson Valley in federal court, alleging odometer fraud, breach of warranty, unfair and deceptive business practices

Used car dealers, in particular, are especially “creative” when it comes to taking advantage of customers, bringing new meaning to the old adage, “buyer beware”!

Take for instance the case of John and Jenise Mastrobuono.  After seeing an advertisement on eBay for a 2000 BMW 323i that looked promising, John Mastrobuono started doing his homework.  He called the company that placed the ad, BMW of the Hudson Valley, and spoke with the general manager on multiple occasions.  He reviewed the vehicle’s CarFax that the general manager of BMW of the Hudson Valley sent to him.  Mrs. Mastrobuono called as well and likewise spoke to the general manager.  They both asked questions about potential issues they had identified on the CarFax and were assured that the car was in tip-top shape.

But when it arrived at their house, problems were evident within seconds.  Rust spots and dents were evident on the exterior.  The rear windows wouldn’t roll all the way up.  The horn and hazard lights weren’t working.  The interior smelled strongly of burning oil.  And after driving it for 20 miles, the odometer hadn’t moved at all.  Obviously concerned, they took the car to a BMW dealer near their house the very next day and learned that the car was not what they were promised.

First off, the CarFax that they were sent was for a different car, and the one they got suffered from a laundry list of problems.  After sinking thousands into the car in repairs within their first weeks of ownership, the Mastrobuonos finally drove it home.  After the fifteen mile drive, their odometer finally moved…4,000 miles!

Shocked and angry, the Mastrobuonos came to Schlanger & Schlanger.  We filed a suit on their behalf in the Southern District of New York, John and Jenise Mastrobuono v. Luxury Vehicles of the Hudson Valley, Inc. d/b/a BMW of the Hudson Valley and Ronald J. Walton, 11-cv-4868. 

The suit alleges that BMW of the Hudson Valley defrauded the Mastrobuonos, forged John Mastrobuono’s signature on various contract documents, and that in the process, BMW of the Hudson Valley violated various laws, including the Motor Vehicle Information and Cost Savings Act, which prohibits odometer fraud; N.Y. General Business Law § 349, which prohibits deceptive business acts and practices; state and federal warranty laws; and the common law prohibiting fraud.  Click here to read the complaint.

If you have experienced a situation like the Mastrobuonos’ or if you are the victim of auto fraud, odometer fraud, or any type of scam involving a new or used auto dealer, give us a call or fill out our online questionnaire.  You may be able to unwind your fraudulent auto sale or get monetary compensation.  Click here to review recent results we have obtained for victims of auto fraud.

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