A dealership within the New York City borough of Queens has sued its former particular finance supervisor for breach of contract and unjust enrichment, claiming he did not return greater than $60,000 in commissions the shop had paid on chargebacks after clients canceled financing and prolonged warranties and returned merchandise comparable to equipment.
The swimsuit additionally accuses David Bernstein of creating misrepresentations to banks that supplied loans to clients of Star Chrysler-Dodge-Jeep-Ram in Queens, a part of the Star Auto Sales supplier group.
It is among the many newest developments in multiyear and contract litigation filed by the supplier group and its shops.
On the identical day Star Chrysler sued Bernstein, the dealership additionally sued a former gross sales supervisor for alleged self-dealing for purchasing and buying and selling in 16 autos with out the required consent of upper administration. That swimsuit asserts the ex-sales supervisor paid lower than $500 above what the dealership owed on the autos and under bill costs, then traded some again for more cash than he had paid.
In May, Star Auto Sales sued the accounting agency it had retained to research monetary wrongdoing. That swimsuit alleged fraudulent misrepresentation and breach of contract. Earlier, it filed two fraud-related fits in opposition to a unique ex-sales supervisor and his spouse.
The swimsuit in opposition to Bernstein and his firm, JJI Enterprises Inc., stated Star Chrysler retained him to promote financing and after-market merchandise. Under that settlement, the dealership paid him 30 % of the gross income for all after-market merchandise and financing he bought.
The registered deal with for JJI Enterprises is Bernstein’s dwelling in Great Neck, N.Y. Corporate registration information filed with the New York Department of State record Tammy Bernstein as the corporate’s CEO.
The settlement required David Bernstein to reimburse commissions acquired for which there have been chargebacks. The grievance included this instance: If he bought a five-year prolonged guarantee the client canceled after one 12 months, Star Chrysler was entitled to reimbursement for the a part of the fee that was charged again to the dealership.
“After Star Chrysler terminated the services of Bernstein it was charged back approximately $200,000 in gross profit for various items” comparable to canceled warranties and the price of equipment comparable to sunroofs and navigation programs that Bernstein falsely advised lenders have been on autos. The banks did not study the reality about these nonexistent equipment till they repossessed the autos, in line with the grievance filed in Queens County Supreme Court.
“Star Chrysler paid Bernstein in good faith for services,” the swimsuit contends.
Neither David Bernstein nor Tammy Bernstein responded to inquiries from Automotive News. Star Chrysler’s lawyer didn’t return cellphone and e-mail messages in search of remark.