LAKEWOOD, Colo. -- Don Massey Pontiac is being investigated for fraud after employees alleged the dealership misled lenders and customers in its transactions.

State investigators will look into allegations claiming the dealership illegally "packed" contracts with warranties and insurance products, inflated the incomes of customers to lenders and misled those lenders about the cars that were being purchased.

Copies of fraudulent deals were turned over to the state by a former employee who said customers paid thousands more for their vehicles than the cars were worth, and lenders approved loans for cars that were worth less than reported.

Specifically, the employee alleged staff inflated the incomes of buyers so lenders would approve larger loans, making way for buyers to purchase more expensive cars. Massey was also said to report to lenders that lower-priced cars were outfitted with extra options and equipment not on the cars, which allowed for the approval of larger loans.

The owners of Don Massey Pontiac have not commented on the allegations, but released a statement, saying, "Our company's highest priority is the fair and ethical treatment of every customer in every transaction."