The Zangara Injunction and the Zangara Endorsed Contempt Order are attached here:
Zangara Injunction 04-11-06
Zangara Endorsed Contempt Order
Related: Larry H. Miller
(ALBUQUERQUE)— New Mexico Attorney General Gary King’s Consumer Protection Division has negotiated a stipulated Order of Contempt with Zangara Dodge, Inc., filed in Judge William F. Lang’s 2nd Judicial District Court in Bernalillo County. The contempt order applies to a 2006 Consent Decree and Permanent Injunction concerning other consumer issues.
The Order signed states:
1. Zangara Dodge, Inc. is held in civil contempt for violating the Consent Decree, the Unfair Practices Act and the Motor Vehicle Dealers Franchising Act;
2. Zangara Dodge, Inc. must provide the AG’s office with access to their “deal” files within 5 days;
3. Zangara Dodge, Inc. must send a letter to consumers for their use with a credit reporting agency (CRA), stating that any delinquencies related to the consumer’s payments are the fault of Zangara Dodge, Inc., of other third parties or other events over which the consumer had no control, and that the delinquencies were not the fault of the consumers; and,
4. Zangara Dodge, Inc. must provide additional repair assistance to consumers who are required to provide more information by their CRAs.
The Attorney General’s office will review documents and records, and determine the scope of the problems that have been reported to the AGO as well as retain the right to return to court for a determination of remedies and consequences.
This Thursday’s previously set court hearing will be vacated.
The New Mexico Attorney General’s Office began receiving the most recent complaints in December of 2008. Fifty-eight (58) consumer complaints have been received to date. Complaints state the following problems:
*Title and permanent license plate fees were not paid;
*Trade-ins were not paid off;
*Extended warranties sold by Zangara were not paid; and
*”Lifetime free tires” warranties bought from Zangara can not be fulfilled.
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Date: Wed, Apr 4, 2007 at 2:05 AM
Subject: Lomas, NE, Albuquerque, New Mexico
Dear Susan, Jim, and Ann
Happy Easter to all of you and your Families.
Thank You to Susan and Ann for forwarding the e-mails regarding The Garcia Automotive Group notice that they intend to exercise their option to occupy the Lomas location for the last X years on their Lease.
I advise against signing an extension with the Garcia Group at this time if ever, here is why.
I suggest that we give serious consideration to setting up our own (Rogers Group) used car business and a separate Finance Company to Finance the Loans on the sales of the Cars. The Interest rate on those loans is extremely profitable. The cars that Zangara is selling are very easy to obtain at the Wholesalers Auctions which are held every 2 weeks. Car Sales people are a dime a dozen to employ.
Jim and I spoke about this briefly a couple of years back and all we would need is a tow truck and Driver, an on site Finance and Insurance Accountant and some Car Sales Goons to run the place.
There are multiple reasons I suggest that we do this.
Here are just a few:
1. Ed Garcia states in his e-mail to Susan:
“As you know, we relocated our Infiniti dealership that once occupied Lomas to the I-25/Montano area which is the geographic/business center of the city. We have recently acquired other properties around that dealership and are evaluating our options for the future, such as relocating other dealerships to that area.
Before we make any decisions regarding re locations, we would like to see what we could work out with you and your siblings regarding another option(s) for Lomas. We have been successful in the Lomas and Wyoming area and are comfortable here. The Lomas location you own has been a good one for us, obviously more so with Infiniti than with Saab. I am proposing two more consecutive renewal options of five-years each at $X-NNN per month for the next renewal option 20XX-20XX with an annual CPI increase of 3% annually. The renewal option from 20XX-20XX would be $X-NNN per month with the same increases. Let me know what you think. Thanks.”
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I personally perceive this to be a threat. He is saying that he will move his dealerships over by the failed House of Carpets building “the geographic/business center of the city” if we do not concede to his terms. This may be an inevitability that we can not avoid given the fact that the Lomas/Wyoming area is and has been in decline for many years now. Should he and Zangara move their dealerships at the same time I think the effect on the value/income of ALL of the Lomas property would be in serious jeopardy. The longer we wait to aggressively and directly compete with Ed Garcia, his Brother Toby Garcia, their Mother Sheila Garcia and Ken Zangara, the more leverage they will have until they both make good on their threats to you, I and our respective Families and move North. If we allowed that, we were not charging them enough rent.
2. Ken Zangara told me a few years back that he was going to move his dealership to Montano and the Freeway.
I perceived this to be a threat also. He told me that he needed to be where people that were looking at Cars to buy had the money to buy them. Meaning in short that in the area of Lomas and Wyoming that people were more suited to buying used cars than new because they didn’t have the money to buy a new car. I believe the trend was moving North and may one day end up in a Super Center consisting of many acres specifically designed for New Car Dealerships North of the Balloon Park, but not anytime soon. However, in the future the time will come when this will happen. I think it will be sooner rather than later and I think we should have a plan of action in place to accommodate this what appears to be inevitable long term change in the marketplace.
The last time I talked to Ed Garcia in October of 2005 he asked me about extensions and I told him that I would terminate the present Lease and create a new Lease for him at $X-NNN per month for 15 years straight provided he pay me X% of the Net Lease at closing plus $X-NNN per hour “take it or leave it”. { 2 comments }
We are in the Investment Business. It is time to wake up and recognize that these Car Dealers are threatening our Investments and our Interests. If left unchecked by us, they will leave us with empty property that is suitable for occupancy only by Hung Lee himself.
Obviously Jim would be the one to bird dog the used car dealerships and their respective employees. The timing on this might be good for him being as how the housing market has slowed way down.
Please keep me informed of our progress.
Happy Easter
Michael
michaelwrogers {at} gmail.com
Manhattan 1-212-655-9657
Albuquerque Journal Zangara PDF courtesy of James Rogers Junior
