Suit claims LV car buyers were misled

Monday, March 11, 2002 | 9:45 a.m.

A Las Vegas woman filed a class action lawsuit against SVJ Inc. doing business as Certified Auto Retailers, its two owners and a former employee, alleging they "acted as a criminal syndicate" by inducing their customers to buy salvaged vehicles at "higher, 'non-salvage' prices" and failing to disclose the history of these damaged vehicles.

Nikki Carter and her lender First Entertainment Credit Union sued Certified Auto owners Steven and Marisa Ptak and a former employee Eloise Diana Wright to appoint a receiver to collect rents and manage the company because they feared records of names of other alleged defrauded customers may be destroyed.

A hearing is scheduled for Tuesday.

The suit said the defendants would buy at auction vehicles that have been issued "salvage titles"-- after the vehicles experienced substantial damage as a result of accident, flood or theft -- at prices substantially below market value for non-salvaged vehicles and then illegally obtain new titles for these cars that didn't indicate their damage history.

First Entertainment, which provides loans to used car buyers, said it suffered about $20,000 in losses because Carter and one other client Michael Johnson defaulted on their loans because of the " 'salvaged' condition of the cars sold by (Certified Auto,) their grossly inflated market value and excessive repairs required."

Carter, who said she wasn't told she had been sold a salvaged 1996 Honda, didn't specify the number of potential class action plaintiffs.

But Georlen Spangler, the defendants' attorney, denied the allegations.

"Certified Auto denies there was any intentional conduct. We bought back several of the vehicles that allegedly had salvaged titles to satisfy the customers. But First Entertainment rejected our offer to buy back Carter's car."

"We're also cooperating with an investigation by the Department of Motor Vehicles of complaints filed by three former employees, who claimed Certified Auto intentionally sold cars with salvaged titles. These workers made the complaints after they were fired," she said.