Exclusive: Auto dealer investigated, buyers don’t receive car titles

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DENVER -- A former Denver based auto-dealer is under investigation, after dozens of former clients came forward, claiming the dealership's owner never sent them titles to the vehicles they purchased from him.

According to the Colorado Department of Revenue Division of Motor Vehicle Fraud, more than 40 complaints have been filed against ABC Auto-Sales and its owner, Koroush Ghasemi.

One of those victims, "Mike," who did not want to be identified by his real name, says he purchased a $6,800 car from Ghasemi and waited months to receive his proof of ownership -- but it never came.

"It’s just been really frustrating," Mike said. "All my money went into this one piece of paper. I don't have that to show for my vehicle."

Mike says he fears the slew of problems he could face by not having a title, including not being able to register the car, troubles securing auto-insurance, and the difficulty of proving he is the owner of the car -- with no legally binding paperwork.

"If you don't have a title, you're not technically the owner of the vehicle, even if you've paid for it," says Megan Herrera, with the Denver Better Business Bureau.

The BBB also received more than a dozen customer complaints about ABC Auto Sales, but Herrera says "the company didn't respond to any of the complaints it received in 2013."

Though we reached out to Koroush Ghasemi on several occasions, neither he nor his lawyer would explain why he never sent the titles to the car buyers.

By late June, Ghasemi handed over his dealership license to the DMV, meaning the business is permanently shut down. However, the Dept. of Revenue is still investigating Ghasemi -- in large part due to Mike's complaint.

However, the DMV would not comment on the case, explaining that it is an ongoing investigation and that "an on camera interview could jeopardize the integrity of the case."

After several weeks of correspondence, FOX 31 has learned that the DMV is offering special temporary tags to anyone who purchased a car from ABC Auto and did not receive a title.

In case you recently purchased a car from Ghasemi and have waited more than 30 days for the dealer to send you a title, the Colorado Department of Revenue Auto Fraud Division can help. Call them at (303) 205-8383 or send them an e-mail: dor_investigationsunit@state.co.us

LINK: Colorado Department of Revenue Auto Industry Enforcement Group
LINK: Denver Better Business Bureau

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7 comments

  • Tim F

    I think that this particular individual was doing the same thing in Denver about 10 years ago or so- might be worth checking out

  • Renfru Muldoon

    So this guy claims bankruptcy and gets to keep his house and other stuff and the 40 plus car buyers get screwed!
    All car dealers should be bonded or insured so if they go under for what ever reason, the people who get screwed (which is usually what happens when you buy a used car from a dealer anyway) will get their titles or what ever else is owed to them.

  • Hyundai Showroom in Delhi

    Yes,there are many auto dealers in the market who do not have any license of auto dealership but still they are selling vehicles and make the people fool. Those people who had bought cars or any other vehicles from these type of fraud dealers have never received their vehicle ownership till now. So, Be aware of these type of auto dealers who selling theirs products to various customers in the market.

  • Ford Showroom in Delhi

    Thanks to Colorado Department of Revenue Auto Fraud Division who has helped Mike in receiving his proof of ownership of the car which he had bought from the ABC auto sales whose owner was Koroush Ghasemi at that time and after that he handed over his dealership license to the DMV, it means the business is permanently closed.Now it has become very difficult for all customers who have bought cars from ABC auto sales and has not received their ownership of car. Its my suggestion to those who are going to buy a new car, please do enquiry about the car dealer from where you will buy a new car.And make sure that the dealer is regular not fraud.Do not do mistake like Mike done.

  • Airport Shuttle

    I think this post is a good lesson for those do not investigate about the car dealers before buying any vehicles from them. They will understand in a better way than any other else. So, always be alert rather than facing problems related to car ownership papers not issued on time by car dealers. And because of not having the proof of ownership, you cannot do the insurance of your car. It can be the possibility that police can also arrest you for not having car ownership while driving it on roads. Thanks for such a information that can make people wake up.

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