May 18, 2005 9:47 pm US/Central
State Shuts Down Car Auction Company
HARVEY (CBS 2) ―
A Chicago auction house has been shut down as a result of disclosures by the CBS 2 Investigators. The action was taken by the secretary of state, who licenses and disciplines car dealers. As Pam Zekman reports, for now, it's no longer bidder beware.
At the City Auto Auction in Harvey, customers claim they were cheated by hidden costs and hidden perils in cars that were in such bad shape we saw workers jump starting them just so the cars could be driven through the auction line.
Others, like Wendy Nachtman say they got undrivable wrecks that were not the cars they bid on. "I think it was a bait and switch," Nachtman said.
On Wednesday, Secretary Of State police served City Auto with an order shutting them down.
CBS 2's Pam Zekman asked Sergeant Tyson, "There was supposed to be an auction here tonight. It won't happen?"
"Won't happen," Tyson said. "We have a revocation order here. He has to cease and desist."
The revocation order cites City Auto's owner for making "material misrepresentations" on his license application for failing to disclose that City Auto managers Adnan Abdeh, his son and Waleed Shakir had owned other car auctions charged with consumer fraud. As we disclosed, Shakir was even banned from ever being in the auto auction business.
"Mr. Shakir, you were ordered not to be in this business more than 10 years ago and here you are running the same kind of business," Zekman said.
"Okay, ma'am we see you, have a good day," Shakir said.
"Why don't you follow court orders?"
"Have a good day ma'am."
Secretary of State Jesse White was outraged after seeing our report. "These people should not be in business. And anyone like them who violates the public trust, who bilks the people out of their hard earned dollars, this office will not stand idly by and let that occur," he said.
Yousef Abdeh, the owner of City Auto is out of the country. He can request a hearing on the revocation order. Meanwhile the attorney general's office is continuing its investigation of consumer fraud at City Auto.
(© MMV, CBS Broadcasting Inc., All Rights Reserved.)
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