A car dealer in Albert Lea was raided Tuesday on suspicion of selling cars without a franchise and pocketing consumer incentives from an automobile maker.

Wednesday, March 06, 2002

A car dealer in Albert Lea was raided Tuesday on suspicion of selling cars without a franchise and pocketing consumer incentives from an automobile maker. The Minnesota State Patrol Vehicles Crime Task Force and Albert Lea Police Department have executed search warrants and seized sales records.

Owner Denis Flaherty denied any wrongdoing in a written statement.

&uot;I certainly do not believe that the dealership or any of the dealership’s employees have broken any laws,&uot; he wrote. &uot;We have been cooperating with the State Patrol’s investigation and we will continue to do so until its completion.&uot;

The search was based on a complaint that Flaherty Chevrolet on Bridge Avenue in Albert Lea made sales of non-franchised vehicles.

A dealer can only deal brands for which they are licensed. The dealer has another outlet in Fairmont handling Buick, Pontiac, Oldsmobile and Cadillac. The investigators suspect the dealer traded cars between the two locations and sold unlicensed vehicles to customers.

The authorities also say they have information that the dealer fabricated sales documents to swindle a General Motors cash-back incentive for customers. The investigators estimate the amount is more than $30,000. No sales taxes were paid for it, the investigation alleges.

The state patrol is examining the records, and the Freeborn County Attorney’s Office will decide whether to file fraud charges.

No arrests have been made in connection with the raid. The dealerships remain open.

&uot;The dealership hopes for a quick resolution and we are confident the investigation will confirm that we have been conducting business properly and within the law,&uot; Flaherty wrote.

The Albert Lea dealership was charged for selling a Buick vehicle to an undercover investigator in 1999.

The state patrol is asking for information from the public with regard to the alleged illegal sales.