Three car dealers restoring $100G to consumers

Attorney General Andrew Cuomo Monday announced settlements providing consumer reimbursements by a Lynbrook Infiniti retailer that allegedly sold used vehicles to consumers without the legally required disclosure they had been rental cars, and by a now-closed used-car retailer in Centereach that failed to refund thousands of dollars in deposits "in a timely manner" to buyers who were turned down for financing and never got their cars.

A third dealership, JM Hyundai in New Rochelle, also agreed to pay restitution, Cuomo said, also for allegedly selling former rental cars without the required disclosure.

A total of more than $100,000 is being returned to consumers by the three dealerships, Cuomo's statement said.

Cuomo said JM Hyundai and Legacy Infiniti of 855 Sunrise Hwy., Lynbrook, agreed to refund 10 percent of the purchase prices to 75 customers to whom rental cars were sold. Legacy paid $19,254 to 10 consumers in checks sent April 23.

Cuomo identified the president of both as John Chmela; he did not return a reporter's phone call. But his attorney, Karl Seman of Garden City, attributed the errors to former executives of JM, which handled most used-car transactions and, along with Legacy, changed hands about two years ago. "There was no intention to deceive anybody," he said. "When the dealers were notified, we cooperated fully. We did everything on a voluntary basis. We gave refunds to each and every person who was unhappy - and many were not unhappy."

Cuomo said Middle Country Motors, which operated until January at 1790 Middle Country Rd. in Centereach, failed to refund deposits for at least 12 vehicles never delivered to consumers - in violation of state law.

"An investigation found the dealer required substantial deposits from customers who sought financing," Cuomo said in a statement. "In instances where the consumer's financing was denied, the dealership illegally kept the deposits or failed to return the money in a timely manner."

Dealership principal Keith Chaikin denied any attempt to defraud anyone. He said the dealership lost its lease and, in a dispute with his partner, he was locked out of its offices for a time. "We had no way to get at our papers," he said. The agreement requires Middle Country to refund deposits.

Consumers have until May 26 to call Cuomo's offices: 631- 231- 2424 or 516-248-3300.