Popular car dealership caught ‘tricking drivers out of $300k’ in elaborate title scheme after man’s vehicle disappeared ...Middle East

TWO dealership workers are in serious legal trouble after they were caught tricking drivers out of $300,000, cops say.

The president and vice president of the popular dealership have been arrested after a year-long investigation into an elaborate car title scheme.

Police started investigating after getting complaints from at least 15 customers of Hovey Motorcars, a luxury auto dealer.

The car lot opened in 1998 and was run by Richard Dean Hovey Sr. and his son, Richard Dean Hovey Jr.

But the Hoveys were behind bars last week on accusations that they conned their customers out of $300,000.

The pair allegedly used victims’ money for their own personal and business expenses when it was meant to go toward bank loans, local CBS affiliate KENS reported.

Fifteen victims described being taken advantage of by the father and son duo dating back to August 2023.

“Detectives uncovered an elaborate system in which Richard Hovey Jr. and Richard Hovey Sr. are accused of illegally taking victims’ money — the value of which was tied to vehicles — without the vehicle owner’s permission and intended to keep it for themselves,” police wrote.

“It was also discovered that all the money was taken as part of one ongoing plan or scheme totaling $300,000 or more.”

Both men, ages 81 and 58, were arrested for theft of property of more than $300,000, a first-degree felony offense.

They are also accused of misapplication of financial property between $30,000-$150,000.

They each had bonds set at $350,000 following their arrest.

Hovey Motorcars didn’t immediately respond to a request for comment by The U.S. Sun.

The arrests in Boerne, Texas, approximately 31 miles from San Antonio, came months after another complaint against the business.

Customer Felipe Villarreal told KENS that he hired Hovey Motorcars to sell his 2020 Ford Mustang GT 500 in October 2023.

“Based on their history, and working on these expensive cars, I figured it was a good fit,” Villarreal said.

WARNING SIGN

“The car was parked in the showroom floor as we agreed. There were no test drives.”

Three weeks after dropping off the car, the dealership called Villarreal and told him his car was gone – and he never got a dime.

Hovey Motorcars had given the car to a buyer who made a $10,000 down payment via credit card.

After handing over the car, the dealership found out the credit card was stolen.

But the fraudster had already gotten their hands on Villareal’s car.

Rick Hovey Jr. provided a statement to KENS defending the dealership’s actions in the 2023 Mustang case.

“A suspect made a $10,000 down payment on the car, obtained auto insurance, and was subsequently approved for a loan to finance the balance,” he wrote.

“Five days after the down payment was made, and one day after the loan transaction was completed, Hovey Motorcars received a letter informing us that the down payment was made using a stolen credit card.

“We immediately reported this to the Boerne Police Department. Despite our diligent efforts and our twenty-six years of business experience, we became victims of theft and fraud in this instance.”

Villarreal said he went to the dealership expecting either his own insurance or the dealership’s to cover the loss.

Dealership Tips

Here are some expert tips when purchasing a car from a dealership lot:

Source: Kelley Blue Book

But Hovey Motorcars told him he’d need to file a claim through his own policy, pointing to the consignment contract he signed.

The agreement stated Villarreal had “full coverage insurance” and acknowledged he was “totally responsible for all damages, repairs, and/or theft” involving the vehicle.

The dealership also told KENS their policy wouldn’t cover the theft because they didn’t legally own the car.

When Villarreal looked at his insurance policy, he found that it doesn’t cover vehicles involved in consignment sales.

He was left paying off a loan of about $60,000 for a car he no longer owns.

DEALERSHIP SCAMS

There have been multiple issues at car dealerships across the country lately.

Just days before the Hovey Motorcars bust, a separate dealership scam in Maine left car buyers thousands of dollars out of pocket – this time involving impersonation.

Two victims said they lost significant amounts of money to what they believed was a legitimate local dealership, only to discover it never existed.

Frank Gatto, owner of Bay City Motors in Auburn, Maine, said scammers were posing as his business online to trick buyers into sending large sums of money for cars that were never delivered.

One victim, Shaun Tayman from Las Vegas, thought he found a great deal on a used Toyota Land Cruiser through TrueCar, a nationwide car listing site.

The listing showed a well-kept vehicle at a competitive price.

Tayman moved quickly and initiated a $71,000 wire transfer to seal the deal.

His bank initially flagged the transaction as suspicious.

But after speaking directly with the supposed seller, the bank cleared the transfer.

When the delivery date came, Tayman was left with nothing.

The car never arrived, and the seller vanished.

Gatto said the scammers had used his dealership’s name and details to appear legitimate.

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