New York Sues Auto Dealer For Scamming Consumers

It's one thing to go to a car dealer and not get a good deal. It's quite another to pay the dealer and not get a car. But New York Attorney General Eric Schneiderman says that's exactly what happened in Erie County, New York.

Schneiderman has leveled felony charges against Laurence Sessum III, owner of Maxx Auto Sales, a defunct dealership that Schneiderman says took more than $100,000 from consumers but never delivered a vehicle.

As strange as it sounds, Schneiderman says Sessum got into trouble by trying to get out of trouble. Schneiderman says he believes Sessum collected the payments from consumers to raise money to make restitution for a previous conviction.

Prior to the Attorney General's investigation, Sessum was prosecuted by the Erie County District Attorney for a separate crime. In that case, he pleaded guilty to stealing more than $500,000 from the New York State Tax Department. In order to avoid jail time, the court informed Sessum that if he paid $50,000 in restitution, the court would be inclined to give him probation.

Getting in deeper

"This is a case of robbing Peter to pay Paul, where money was taken from consumers and used to pay off a previous crime,” Schneiderman said. “I am committed to using all of our legal tools to stop crime sprees like this in its tracks."

According to the complaint, if a customer wanted a car that was not on the lot, Sessum would promise he could obtain it, if the consumer made a down payment. Schneiderman said Sessum would pocket the down payment but not secure the vehicle.

To protect wronged customers, Schneiderman also filed a civil lawsuit against Sessu, and obtained an order freezing his assets.

Sessum is charged with one count of Scheme to Defraud in the First Degree, four counts of Grand Larceny in the Third Degree and one count of Grand Larceny in the Fourth Degree. If convicted, Sessum could be incarcerated for up to two and one-half to seven years.