Zangara Dodge engaged in "deception or fraud" when it failed to pay off cars and trucks it took as trade-ins, the Attorney General's Office said in asking the dealership be held in contempt of court.
In a motion filed in district court Wednesday afternoon Assistant Attorney General William Keller described the sales practices of Ken Zangara's now-closed dealership as "an automotive Ponzi scheme." The civil-court motion requests a show-cause hearing where Zangara would have to show why the dealership is not in violation of an earlier court agreement.
The dealership for an unknown period of time diverted money intended for current obligations to pay for older transactions until the scheme collapsed, according to Keller's motion.[1]
