A County Supreme Court has ruled that Victory Mitsubishi of Larchmont misled up to 1100 customers by charging them for optional anti-theft devices without their knowledge or consent.
Former state Attorney General Eric T. Schneiderman sued the former dealership, which was located at 2020 Boston Post Rd. in Larchmont, last year, claiming they had made at least $751,000 through this practice from 2012 through 2016.
According to reports, the court ruled on Aug. 9 that Victory and its affiliated dealership, Victory Suzuki of the Bronx, “repeatedly and persistently engaged in fraud.”
The activity is known as “jamming,” or charging customers for services or products without their knowledge.
The dealers sold a service to etch serial numbers on car windows to deter theft.
Victory dealers reportedly paid a Texas company $25 for each etch, and resold them for an average of $1,175.
In a random sampling of 10 vehicles whose owners paid for an etch guarantee, investigators found eight had no etching and one owner whose windows were etched was unaware of the purchase.
The dealerships are owned by Philip Argyropoulos of Glen Head, Long Island, and will have to make full restitution to customers and pay $5000 in fines per customer defrauded.
