Michigan Cracks Down on Livonia Dealership Over Fraudulent Practices

Update: The Detroit News reported that the Michigan Department of State reinstated the license of a Hyundai dealership in Livonia on Friday, just two days after accusing the business of “misrepresenting a vehicle as new.

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LaFontaine Hyundai of Livonia License Suspended Amid Fraud Allegations

Michigan Department of State Takes Swift Action on Vehicle Fraud

LANSING, Mich. – Dec. 5, 2024 – The Michigan Department of State (MDOS) has suspended the license of LaFontaine Hyundai of Livonia following allegations of fraudulent practices that posed an imminent threat to public safety. Located at 34715 Plymouth Rd., the dealership is accused of falsifying documentation to lease used vehicles as new, among other violations.

The MDOS regulatory investigation uncovered several infractions, including:

• Falsifying records to certify used vehicles as “new” on official state applications.
• Misrepresenting vehicles’ statuses in sales transactions.
• Failing to properly issue temporary registrations.
• Omitting or incorrectly handling odometer information on vehicle titles.
• Delaying title applications for purchasers beyond the legal 21-day period.

These activities were deemed significant enough to warrant immediate emergency action.

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How LaFontaine Hyundai Allegedly Violated Consumer Trust

According to the MDOS, LaFontaine Motors of Livonia violated key provisions of the Michigan Vehicle Code. The investigation found that the dealership’s corporate office encouraged employees to submit falsified records, even after the MDOS and Michigan Automobile Dealers Association issued bulletins clarifying what constitutes a “used” vehicle under state law.

One particular violation involved falsifying lease transactions. Investigators found that the dealership falsely claimed customers had not taken delivery of vehicles, allowing them to lease the same cars as “new” to other customers.

These unethical practices, coupled with mismanagement of crucial registration documents, highlight a systemic problem within the dealership, according to MDOS officials.

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Consumer Protection Efforts Underway

The MDOS emphasizes its commitment to protecting consumers from deceptive practices. In a statement, the department called the dealership’s actions “an imminent threat to public health, safety, and welfare,” necessitating immediate intervention.

Consumers who suspect fraudulent activity involving LaFontaine Hyundai are urged to report their experiences. Complaints can be submitted via the MDOS Office of Investigative Services’ automotive complaint line at 844-372-8356.

The MDOS is reviewing the case for possible referral to the Department of Attorney General for further legal action.

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