Bayside Car Dealership Settles Fraud Claims

BAYSIDE, QUEENS — The New York Attorney General's Office is returning more than $186,000 to a group of Chinese-speaking customers scammed by a Bayside used car dealership, officials announced Tuesday.

The payments are part of a settlement New York Attorney General Letitia James reached last week with Star Auto Sales of Bayside, which she accused of using "fraudulent, deceptive and unlawful practices" to sell used cars at inflated costs, according to a news release.

Under the settlement, the auto dealership agreed to pay restitution to 22 customers and pay a $100,000 fine to the Attorney General's Office — but "without admitting or denying" any of the allegations, records show.

“Stealing from our immigrant communities by taking advantage of language barriers is not only illegal, but downright shameful,” James said in a statement. “New York values its immigrant communities, and we will not stand idly by while they are targeted. I look forward to returning hard-earned money back into the pockets of consumers, and I am proud to be able to fight for the rights of all New Yorkers.”

The scheme targeted Chinese-speaking customers, who met with Chinese-speaking sales representatives who touted their common language as a reason to trust them.

The sales representatives had the customers sign contracts to buy cars at higher costs than they had agreed to during negotiations and inflated the final totals by adding unwanted products like supplemental warranties, service contracts and theft insurance policies, the Attorney General's Office said.

The dealership, also known as Star Toyota of Bayside, failed to provide buyers with copies of sales or lending contracts that would have disclosed the final costs, and used inflated or made-up personal financial information to get loans that customers struggled to pay.

Sales workers also demanded tips and took cash for expenses that were already included in transactions, according to the Attorney General's Office.

Officials caught wind of the scheme after customers complained to U.S. Rep. Grace Meng, who represents parts of Bayside in Congress.

"Taking advantage of customers, particularly those with limited English proficiency, is unconscionable and shameful," Meng said in a statement. "Unfortunately, this is not uncommon in immigrant communities where cultural and language barriers exist. But these cases should serve as a warning to others who seek to swindle vulnerable individuals out of their hard-earned money."