Hyundai Claims Dealer Fraud Forced $5M in Repurchases
Hyundai North America has sued a Pennsylvania dealer for fraud, claiming he bilked the automaker for $5 million by buying up hundreds of used Sonatas and purposely damaging their engines beyond repair.
The sixth-generation Hyundai Sonata is at the center of a scheme the automaker alleges a Pennsylvania dealer undertook to fraudulently claim $5 million in factory repurchase funds.
Photo courtesy Hyundai Motor Co.
PITTSBURGH — Hyundai North America is suing Christopher D. Pantelis, the operator of Pittsburgh’s Doman Auto and Knight Motors, in federal court. The lawsuit, filed this month with the U.S. District Court for the Western District of Pennsylvania, charges Pantelis with fraud, unjust enrichment, and breach of duty of good faith and fair dealing.
Read: Calif. AG Sues Blanco for Bank Fraud, False Advertising
The automaker claims Pantelis bought hundreds of 2011–’14 Hyundai Sonatas from auctions nationwide under his Doman Auto license. He then sold them to Knight Motors at marked-up prices and “deliberately damaged or altered engines by an unknown means” to the extent the engine assemblies could not be replaced, according to court documents.
Hyundai says the factory repurchased approximately 600 units for about $5 million before the scheme was uncovered.
“The allegations made against our clients are patently false and we will be responding through the legal process.”
Pantelis has denied the charges through his attorney, Jason A. Archinaco.
“The allegations made against our clients are patently false and we will be responding through the legal process,” Archinaco told the Pittsburgh Post-Gazette.
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