Felony charges for 2 car dealers
Former Auburn auto executive arrested
A former Magnussen Dodge of Auburn partner Larry Carmean is behind bars in El Dorado County charged with several felonies including money laundering. Carmean, 61, most recently operated Carmean Dodge in Shingle Springs and El Dorado Hills Dodge until late 2008. Prior to starting his own car dealership, Carmean had an interest in the Auburn dealership. Carmean was arrested around 7:30 Friday morning in Orangevale. Former general manager John Catalano, 38, was arrested in Folsom. Both have been charged with multiple counts of grand theft and embezzlement resulting in losses of up to $1.3 million to several customers of the dealership and various financial institutions, according to investigators. The arrests followed an 18-month long investigation by the El Dorado County District Attorney’s Office, the Department of Motor Vehicles and the Department of Insurance. “During the months of May 2008 through July 2008, Carmean, the sole proprietor of the dealership (Carmean Dodge) is alleged to have acquired and sold numerous vehicles, engaging in theft and embezzlement prior to the abandonment of his business location,” according to information provided by the DMV. The investigation revealed Carmean Dodge allegedly defrauded Chrysler Financial for $1.6 million in new car inventory, $750,000 in used car inventory, and $132,000 in used car inventory to AFC Financial. Also identified were 92 transactions occurring between May and July 2008 with possible violations, including failure to transfer title and registration, failure to return down payments failure to pay for warranties, extended service contracts and gap insurance policies. Casey Butler of El Dorado Hills bought a 2008 Dodge Ram pickup truck from Carmean Dodge and says he was one of the many financial victims. “They talked me into an upgraded lifetime service plan for the truck,” he said. “Turns out a week later they are closed down and the contract isn’t any good anywhere else.” Fortunately, Butler was able to find a dealership to honor the contract — Magnussen Dodge in Auburn, where Carmean once worked. “Not only did I get ripped off on the truck — that’s partly my fault, I had this contract that wasn’t any good,” Butler said. “Magnussen is honoring it, but that means I have to drive up to Auburn.” Ron Wells, general sales manager for Magnussen, confirmed that they will honor service contracts. “We are honoring the valid service contracts from (Carmean) — verified through Chrysler,” he said. “My best advice would be to come by and let us review the contract and see what we can do.” George Valverde, director of the DMV, said it is unusual for a dealer to be so unscrupulous. “Nearly all dealers play by the rules, but crimes against California customers simply will not be tolerated,” he said. “Protecting California consumers is a top priority of the department, and a crime such is this is one that we take very seriously.” The defendants are currently being held without bail in El Dorado County Jail. Penne Usher can be reached at penne.usher@gmail.com.
Keywords
Larry Carmean, John Catalano, El Dorado County Jail, Magnussen Dodge of Auburn, Carmean Dodge, Shingle Springs, El Dorado Hills Dodge, Orangevale, Folsom, El Dorado County District Attorney’s Office, Department of Motor Vehicles, Department of Insurance, Chrysler Financial, AFC Financial, Casey Butler, Dodge Ram pickup, Ron Wells, George Valverde,
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These guys must not have gone to the movie "Fargo"
My dad sold trucks for International Harvester for 41 years. When I was old enough to buy a car, he told me to remember that the salesman is more concerned about providing for his family than he is about you.
JonGreen: Yeh, probably went to "Brokeback Mountain."
What goes around comes around...KARMA....You have to remember they watch you for years so they can make a good case against you.
I am happy they were caught........karma karma karma karma....
Acadian, Yes. But some like my dad and Al wanted their customers to come back to them.
Chris B. I don't understand your comment.
I worked a deal out through a fleet salesman at Magnussun a number of years ago through email and the phone. We had it nailed down to the model of vehicle, options, 0% financing, $500 below invoice, and a $3K rebate. In other words, a GREAT deal.
I showed up, placed a deposit. About 5 weeks later, my vehicle was on the lot, exactly as I had requested and there were no tricks or hitches. It was an awesome example of a nice guy who sold cars. Unfortunately for him, it was my first new vehicle and I plan to use it for about 15 more years.
Not all people associated with the auto business are bad. These 2 men are
the exeption not the rule. Gold panner thanks for the positive story about a
car purchase. Everyone seems to have had a bad experience at one time
or another. The same could be said about any number of business transactions.
I'm not sure everyone understood what I was trying to say about sales people. It's not bad that they are more concerned about their family than you. That's just something customers need to understand.
The auto industry continues to lower the bar? I can't believe anyone is crazy enough to buy a new cars from a dealer right now in this economy. Considering that a healthy chunk of Cash 4 Clunkers cars have already been repossessed (i.e. repofinder.com) why not just go to local banks and credit unions and buy these repo cars back for half the retail price? If you're going to buy junk at least don't over pay.
MIKEDUDICAL: Before a "cash for clunkers" deal was consumated by the feds, it had concrete or some such thing fed into the injection system and acid poured into the crankcase...that's why
jab1pc: What mikedudical said was that the NEW CARS purchased under the Cash for Clunkers program have already been repossessed by the banks and you should go buy one of those repos, to save money, instead of buying a new car from a dealer. He wasn't talking about the clunkers, themselves.
anastasia:...new cars,...I'm slow on the uptake, but I think I understand
anastasia: its his junk comment that has me upside down...that can't refer to new cars,...can it?
Funny that everyone leaving comments is so easy to judge these men when you think about everyone including the government thats screws over people and even creditors... they, in work basically rape us all for are money.....An inocennt man put to jail for dodges mistakes not, his nor other car deals being arrested elsewhere. Read about all the ex owners off dodge dealers being inprisoned for dodges mistakes so easy to point the finger when people only go by what they here....... Dodge dealers closed everywhere what did they do knowing that they were on the verge of bankruptcy they pulled a martha, and polled out and left all the owner with all there responsibilities and finger pointing and self distruction.......these car owners have sold to millions of people and the only mony being washed is by dodge and the government and other bussiness" around the world well then point your fingers back at them and stand up for these poeple not the ones trying to make a living and loved selling and making there money to millions of people easy to say when we are in a recession that here is a problem and another because people are jelous of others success even when the do something legit they are brought down by others. the biggest problem with this world starts with the media and the way they hover and look for problems that arent even there and if they are there the ones probably being payed off to lie about whats really going on investigate more on dodge and things that matter
people are so easy to look for problems so they can get there selfs out of debt they lie steal and cheat, to what ever means possable and these few people that say were victom you have a inoceent man behind bars when indeed the ones you should have been talking to is dodge itself and pointing fingers there........why dont we just take bill collector s to jail for all the money they steal from american through out the world.............