Sherman Dodge Violates Consumer Fraud Act, Attorney General Says

SKOKIE, IL — A Skokie car dealership continued to deceive customers and engage in unfair advertising and sales practices for years — even after its operators agreed to pay restitution and refrain from breaking consumer protection laws, according to the Illinois Attorney General's Office.

Skokie Motor Sales Inc., which operates under the name Sherman Dodge at 7601 N. Skokie Blvd., is accused of engaging in unfair and deceptive marketing and sales practices, violating the state's Consumer Fraud Act and advertising regulations in a suit filed Tuesday in Cook County Circuit Court.

According to the suit, Sherman Dodge's violations included selling cars for more than they are advertised, advertising cars that were already sold or leased, guaranteeing a value for trade-in vehicles, using illegal coupons in its ads, marketing loans to those facing bankruptcy and more.

The suit comes more than four years after Sherman Dodge — which advertises itself as the "largest dealer" with the "largest inventory" and "lowest prices" — entered into an assurance of voluntary compliance agreement with the attorney general's office in response to allegations it engaged in "bait-and-switch" sales practices.

The attorney general's office first opened an investigation into the Skokie car dealership in October 2014 after getting complaints from consumers who found they could not buy vehicles it advertised, according to the suit. When they would try, car shoppers said Sherman Dodge salespeople told them they already sold the advertised car and offered to sell them a different one.

But the dealership kept advertising cars they claimed to have already sold for days or weeks after being told the car was sold, the consumers alleged.

In February 2016, Sherman Dodge President David Dickens signed the binding agreement with the chief of the attorney general's consumer fraud bureau.

According to the agreement, the investigation by the attorney general's office found 20 vehicles continued to be advertised for 51 days after they were sold, 18 vehicles were sold for more than the price advertised, and dealership representatives neglected to disclose prior damage or accidents, among other things.

Dickens agreed to pay nearly $150,000 in restitution to the state and to the attorney general's office. While not admitting to wrongdoing, he further agreed Sherman Dodge would refrain from any further violations of state consumer protections and motor vehicle advertising regulations.

Since entering into the agreement, the attorney general's office has received more than 120 additional consumer complaints against the car dealership, according to the complaint filed Tuesday.

"The unlawful conduct of Sherman Dodge is ongoing and continuous," Assistant Attorney General Jacob Gilbert alleged in the two-count civil suit, which asks a judge to find that the dealership violated the 2016 assurance of voluntary compliance and several sections of the Consumer Fraud Act.

It also asks the court to require Sherman Dodge to pay restitution to customers, to invalidate all contracts entered into through unlawful means, and to pay a penalty of $50,000 per deceptive act, $50,000 for any act found to have been intended to defraud and another $10,000 for any such act committed against someone 65 or older.

In recent months, Skokie Motor Sales Inc. received between $2 million and $5 million in forgivable taxpayer-backed Paycheck Protection Program money created as part of the Coronavirus Aid, Relief, and Economic Security, or CARES, Act, according to federal officials. In its application, company representatives said the money would allow it to retain 145 jobs.

Attorney General Kwame Raoul said in a statement he was committed to bring enforcement actions against anyone who takes advantage of Illinois consumers in violation of state law.

“Sherman Dodge knowingly and repeatedly took advantage of people through deceptive advertising — even after entering into an agreement with the Attorney General’s office to stop using unlawful practices," Raoul said.

Representatives of Sherman Dodge did not return calls or messages seeking comment regarding the allegations Wednesday. On Thursday, Lissa Druss, CEO of the crisis communications firm Strategia, said the accusations were under review and declined a request for an on-the-record interview with General Manager Alex Kocik.