Department of State takes action against Michigan vehicle dealership

LANSING, Mich. – On Dec. 4, the Michigan Department of State (MDOS) suspended the license of LaFontaine Motors of Livonia Inc., also known as LaFontaine Hyundai of Livonia, for imminent harm to public. The vehicle dealership is located at 34715 Plymouth Rd. in Livonia. 

LaFontaine Motors of Livonia Inc. was summarily suspended for several alleged violations of the Michigan Vehicle Code. The violations were discovered during an investigation by MDOS regulatory staff of the dealership falsifying documentation so it could lease used vehicles as new. 

The violations included:  

• committing fraudulent acts in connection with selling or otherwise dealing in vehicles where LaFontaine: 
  • falsely stated that a customer had not taken delivery of a vehicle to lease the vehicle as new to another customer 
  • fraudulently certified a vehicle as “new” on an MDOS Application for Title and Registration 
• misrepresenting a used vehicle as new 
• failing to have a title in immediate possession with the odometer information properly completed 
• failing to properly issue a temporary registration 
• failing to properly complete the MDOS Application for Title and Registration 
• failing to make application for title and registration in purchaser's name within 21 days of vehicle delivery 

These violations created an ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action. 

MDOS and the Michigan Automobile Dealers Association issued bulletins reiterating what makes a vehicle “used” under the Michigan Vehicle Code. As part of the MDOS investigation, regulatory staff discovered that the LaFontaine corporate office suggested submitting false information even after the bulletins were issued, and the dealership then followed this advice to allegedly sell or lease the vehicles as “new.”