BM Motor Cars in Rahway Defrauded Consumers for Nearly a Decade,

Hiding Key Information About Used Cars They Sold

View Final Judgment

TRENTON – Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs (“Division”) announced today that the State has obtained a judgment totaling more than $840,000, including a $793,500 civil penalty, against a Union County used car dealership for nearly a decade of defrauding car buyers and violating a prior Consent Order with the Division.

The judgment resolves a lawsuit filed by the State against Federal Auto Brokers, Inc., doing business as BM Motor Cars (“BM Motor Cars”) in Rahway. The Superior Court found that BM Motor Cars failed to disclose critical vehicle information to buyers, withheld pricing information in its advertisements, and violated a 2018 Consent Order with the Division. This conduct violated state and federal consumer protection laws, including New Jersey’s Consumer Fraud Act (“CFA”).

The judgment announced today reflects the ongoing commitment of the Office of the Attorney General to protecting consumers and making life more affordable for all New Jerseyans. Acting Attorney General Davenport and the Division of Consumer Affairs will hold businesses accountable when they deceive or defraud consumers by hiding key information about the products they are selling or about the prices they are charging consumers, as BM Motor Cars did here.

“Access to a safe and affordable vehicle is not a luxury—it is a necessity for New Jersey families. Consumers have the right to clear, truthful information when navigating the expensive and complex process of buying a car,” said Acting Attorney General Davenport. “We will always stand up for our consumers when corporations seek to defraud them and hide the ball on the products they sell. Dealers who repeatedly violate our consumer protection laws or Consent Orders prohibiting them from hiding information about vehicle history, safety, and pricing will face enforcement actions and significant penalties for their misconduct.”

“The judgment against BM Motor Cars holds the dealership accountable for years of misrepresenting and failing to disclose the true condition and mileage of the vehicles they sold,” said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs. “We will continue to demand honesty and fairness in the motor vehicle sales industry and put a stop to unlawful business practices that undermine consumers’ ability to make informed choices.”

BM Motor Cars has a long history of consumer protection violations. The Division’s 2018 Consent Order imposed a $55,899 penalty on the company for selling risky “gray market” vehicles without proper disclosures and required it to reform its practices. Despite the Consent Order, BM Motor Cars continued to defraud numerous car buyers, resulting in dozens of additional consumer complaints and prompting the 2023 lawsuit.

The Superior Court found that the dealership’s sheer volume of violations over a two-month period–511 in all–as well as the dealership’s disregard for the 2018 Order alleging similar misconduct, reflected a “pattern of non-compliance” and a “lack of good faith and observance of fair dealing” that supported enhanced penalties to deter future misconduct.

The State’s Civil Complaint, filed in Superior Court in Union County, alleged that BM Motors Cars engaged in conduct that violated the CFA, the Motor Vehicle Advertising Regulations, and the 2018 Consent Order, in the following ways:

·    Hiding prices: failing to include dealer preparation fees in the list price on its online advertisements, and failing to display on its website, in the required font size, the statement “price(s) include(s) all costs to be paid by the consumer, except for licensing costs, registration fees, and taxes,” in violation of New Jersey’s Motor Vehicle Advertising Regulations;

·    Illegal inspection waivers: having consumers waive their right to purchase a used vehicle that meets New Jersey inspection standards, without providing consumers with a separate disclosure of known defects affecting the vehicle’s ability to pass inspection at the time of the waiver, in violation of New Jersey’s Motor Vehicle Certificate of Ownership Law;

·    Odometer Disclosure Act violations: failing to provide a copy of the signed odometer disclosure statement showing vehicle mileage upon transfer of vehicle ownership to the vehicle buyer, in violation of the Federal Odometer Act; and

·    Ongoing gray market vehicle sales: failing to provide required disclosures regarding gray market motor vehicles, which are vehicles imported without authorization and that may not meet U.S. safety or emissions standards, leading to potential high-cost repairs or incompatibility with local regulations.

On January 20, 2026, the Court granted the State’s request for final judgment and entry of injunctive and monetary relief. In addition to imposing a $793,500 civil penalty against BM Motor Cars, the Court ordered BM Motor Cars to reimburse the State $49,276.24 for attorney’s fees and investigative costs. The order also enjoins BM Motor Cars from engaging in any unfair or deceptive acts or practices in the conduct of its business in New Jersey and requires the dealership to comply with all applicable State and/or Federal laws, rules, and regulations.

The State was represented in this matter by Deputy Attorney General Sara Koste, under the supervision of Deputy Attorney General/Section Chief Jesse J. Sierant of the Consumer Fraud Prosecution Section within the Division of Law’s Affirmative Civil Enforcement Practice Group. Investigator Kelly Fennell of the Office of Consumer Protection within the Division of Consumer Affairs conducted the investigation.