Secretary Johnson suspends license of Detroit auto dealer

MAY 23, 2013Image: Consumer Protection

Monaco Motors allegedly committed fraud when selling vehicles

Secretary of State Ruth Johnson today announced that she has summarily suspended the license of Monaco Motors of Detroit due to alleged fraudulent acts in connection with selling and dealing with vehicles.

The used-car dealership at 15290 Gratiot Ave. in Detroit is alleged to have given a false statement of a material fact and several fraudulent acts in connection with selling or dealing in vehicles. Most significantly, the violations include allegedly fabricating insurance policy information when selling the vehicle. Monaco Motors' owner, Darrell Lees, now will have an administrative hearing about the suspension.

"If we find a dealer who is violating the law, we will take swift action to stop them from preying on Michigan consumers," Johnson said. "While most auto dealers are reputable business people, we will hold those who are not accountable."

The suspension prohibits Lees from buying, selling, offering for sale or dealing in vehicles. The dealership has been licensed since Sept. 6, 2011.

In addition to the dealer license suspension, the Michigan Department of Insurance and Financial Services last month issued a cease and desist order against the dealership, Lees and another man to stop unlicensed insurance activity.

Consumers who have a complaint against Monaco Motors are encouraged to call the Department of State Information Center at 888-SOS-MICH (767-6424).


For media questions, please call Gisgie Dávila Gendreau at 517-373-2520.