“In this particular case, we had over 100 complaints against [Carvana] for failure to transfer title, which resulted in an inspection, which resulted in the other charges,” Garza said. “Most of that stuff is records violations pertaining to their licensing agreement with the state.”
Regulatory officials in the May 13 filing also charged Breaux with two counts of failure to comply with licensees’ requirement to keep records and make inspections; one count of failure to comply with licensees’ requirement to document evidence of right to possession; one count of failure to comply with licensees’ requirement on records for new and used vehicles; and one count related to maintaining records for special plates.
In a separate filing on May 12, the agency charged Breaux with two counts of Carvana operating as an unlicensed used-vehicle dealer.
In Illinois, failure by a dealer to transfer a title is a Class B misdemeanor that carries a penalty of up to six months in county jail and a maximum fine of $1,500. Improper use of titling and registration is a Class C misdemeanor that carries a penalty of up to 30 days in county jail and a maximum fine of $1,500, plus any mandatory court costs, Illinois Secretary of State spokesman Dave Druker told Automotive News.
The next action in the Breaux cases is set for Nov. 1 in the 18th Judicial Circuit Court in Illinois’ DuPage County, west of Chicago. Breaux is required to appear, according to court records.
The charges against Breaux were filed shortly after regulators suspended Carvana’s dealer license on May 10.
In its reasoning for the suspension, the Secretary of State’s office alleged its police department’s early year investigation had found a pattern of the online used-vehicle retailer failing to properly transfer titles for vehicles it sold and misusing the issuance of out-of-state temporary registration permits.
That suspension was stayed on May 26 but reinstated July 18, prompting Carvana to file for injunctive relief against the agency. A judge in DuPage County on July 29 blocked the agency from further revoking Carvana’s dealer license. Carvana is now allowed to sell in the state under certain restrictions.
The next public hearing in that matter is set for Dec. 8, also in the 18th Judicial Circuit Court.