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State Obtains Restraining Order to Stop Dealer’s Sales

By Staff Writer July 12, 2019

The Tennessee Attorney General’s Office has obtained a temporary restraining order to prevent a used-car dealer from making any sales.

In granting the TRO, the court found that McDivitt Motors and owner Martin McDivitt violated the Tennessee Consumer Protection Act and the Uniform Fraudulent Transfer Act and that immediate harm would result unless the court intervened. The TRO also orders an asset freeze, receivership and accounting against McDivitt Motors.

The state’s civil enforcement complaint against McDivitt Motors alleges the defendants deceived customers by claiming the store was licensed to sell new vehicles, which it was not, and misrepresented used vehicles as new. The defendants also failed to disclose to customers that vehicles they traded in would not be paid off, as was the understanding between the parties.

The Tennessee Attorney General also alleges the defendants acted unlawfully by writing checks to purchase vehicles when bank account balances were negative and transferring large sums of money between a business checking account and a personal checking account. Both accounts were ultimately under Martin McDivitt’s control and supervision.

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Last modified on Friday, 12 July 2019 13:13