Richard Caetena Auto Wholesalers Inc.
Richard Caetena Auto Wholesalers Inc. was accused of selling invalid warranties in a lawsuit filed earlier this month.
TETERBORO -- A prominent used car dealership tricked its customers into paying thousands of dollars for fake warranties, a class action lawsuit filed earlier this month alleges.
Richard Catena Auto Wholesalers Inc. employees allegedly duped customers into buying warranties that did not exist and kept the money, according to the complaint filed by Susan Chana Lask, the attorney representing the clients who brought the suit.
The suit alleges that the insurance for the warranties was not properly funded and that the dealership didn't respond to customers who were unable to get their cars fixed under the invalid warranties.
The warranties were sold since 2010, the suit alleges.
In 2015, Gregg Frankel, of Lebanon, bought a 2011 Mercedes-Benz for more than $70,000 from the dealership, along with a $3,000 "Platinum Plan" from Applied Protection Systems, LLC., the suit alleges.
His contract stated that he would be covered for four years or 50,000 miles, depending on which came first, it says.
But when Frankel's car needed fixing about a year later, technicians discovered his warranty under Applied Protection Systems didn't have a phone number, website or email address.
William Bruner, who lives in Weston, Connecticut, claimed a similar experience in the suit. In 2014, he purchased a Mercedes S65 AMG for more than $85,000 and a "Platinum Plan" warranty for $4,000.
The contract was for four years or 48,000 miles, he alleged.
More than two years into the warranty, Bruner says he realized the warranty didn't exist and he began trying to get into contact with the dealership. His requests were ignored, the suit alleges.
Applied Protection Systems, LLC, which offered invalid warranties, was not backed by an insurance company and did not have the funds to offer protection, the suit alleges.
Richard Catena Auto Wholesalers Inc. is based out of Teterboro and sells and leases a variety of luxury cars, including vehicles from BMW, Lexus and Audi.
A request for comment from the dealer was not returned.
The lawsuit was filed in federal court and seeks more than $5 million.
Sara Jerde may be reached at sjerde@njadvancemedia.com. Follow her on Twitter @SaraJerde.