D.A. Says Honda Buyers May Have Been Overcharged

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Sonic Automotive Inc., parent of Honda of Santa Monica, has been ordered to send notices and release forms to about 1,500 customers who may have overpaid for their vehicles.


The customers were bilked out of hundreds of thousands of dollars in charges for “VT Registration,” which doesn’t exist. Refunds are expected to range from $100 to $1,000 and total about $829,000.


“It was apparently some type of code that they made up to disguise the vehicle theft program to make it look as if it was a required fee,” said L.A. County Deputy District Attorney Jeff McGrath, a prosecutor on the case. “Some of our victims tell us that that’s what they were told.”


The investigation into the dealership began in July 2002, when an employee tipped authorities. Interviews were conducted of customers and former employees.


Sonic Automotive declined to comment on the case.


McGrath said the District Attorney’s Office obtained the judgment in the civil portion of the case by establishing violations of the Business and Professions Code.


It is one of only three such cases filed by the department, which also previously won a judgment against El Monte-based Gunderson Chevrolet, owned by Auto Nation Inc. A case also has been filed against McKenna BMW in Norwalk.


Customers who purchased or leased a vehicle between April 7, 2000, and October 31, 2002, may all be eligible for reimbursement, which will be handled by an outside firm. Sonic has additionally been fined $548,000 in civil penalties and costs.


Meanwhile, the District Attorney’s Office is pursuing a criminal case against six former dealership employees. The maximum penalty would be 10 years in jail. The trial date has yet to be set.

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