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Dealer's License Revoked for Fraudulent Practices

January 22, 2008

A Maine auto dealership’s license was revoked due to fraudulent practices. Evidence was found showing the dealership was, among other things, collecting payments for insurance policies and extended warranty coverage from customers, but failing to submit those payments to the underwriting companies.

A recent decision made by the Bureau of Motor Vehicles (BMV) revoked the license of Dave Gould Ford, located in Ellsworth, Maine, to operate as a seller of new cars in Maine.

BMV investigators, who have been reviewing questionable business practices at Gould Ford since receiving a consumer complaint in July 2007, also found that the dealership was accepting vehicles for trade which had outstanding liens against them, and then was failing to pay off those liens, according to the written decision of Hearings Officer Joanne Baumrind.

“Our investigators have detailed over 150 fraudulent acts committed by Gould Ford against unsuspecting Mainers involving over $288,000 dollars, resulting in serious financial troubles for many people,” said Secretary of State Matthew Dunlap, in a release.

At a recent hearing, Gould testified he is now taking personal responsibility for the unpaid liens. The hearings officer said taking responsibility for prior acts now failed to mitigate the facts Gould Ford engaged in fraud on several occasions.

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