25 search results for "red rock auto group fraud"

Red Rock Auto wage theft lawsuit headed for trial Dec. 9-11

Red Rock GMC on First Street in Grand Junction, where Derek Paíz was employed as a detailer

A civil wage theft lawsuit, 23CV52 (pdf), filed by a tenacious former vehicle detailer against Red Rock Auto Group II, Inc. and Red Rock’s local minority owner Bryan Knight, is headed for a fast-approaching jury trial December 9-11, 2024 at the Mesa County Justice Center.

At a virtual pre-trial conference this morning, November 20, Judge Matthew Barrett confirmed that the trial is set for those dates and will be heard by a 6-person jury.

Bryan Knight, now listed as a minority (10%) owner of Red Rock GMC

Derek Paíz worked as a detailer for Red Rock GMC at 741 N. First Street in Grand Junction from April-September, 2022. He filed the case pro se (on his own, without an attorney) on October 26, 2023 seeking wages he alleges Red Rock failed to pay him for work he did while employed at the GMC dealership in 2022. 

Defrauded by a dealership and can’t afford to sue? There’s another way to get compensation: Make a claim against the dealership’s surety bond.

Did you buy a vehicle from a local dealership only to find out later you were defrauded in some way? Can’t afford an attorney to help?

Fortunately, there’s another, completely unpublicized way car buyers can get compensation for a fraudulent deal committed by a dealership.

Surety bonds

Colorado law requires every licensed motor vehicle dealer to carry a surety bond. The bond is meant to protect customers from fraudulent business practices.

Red Rock elevates former owner, who presided over frauds and arrests, to General Manager over all five dealerships

Red Rock Nissan at 2582 Highway 6 & 50 in Grand Junction

In February, 2024, the sole local owner of Red Rock Auto dealerships, Bryan Knight, was removed from the Auto Industry Division’s list of owners of the business. The change came about after two years of customers and former employees  speaking up about the questionable business practices the dealerships were found to be using under Knight’s ownership. Yet despite Knight getting booted as an owner, he was reportedly still present and working at the dealerships. So with all that has been revealed about how Red Rock was operating in Grand Junction to the detriment of the community, why would the other owners of Red Rock Auto decide to push Knight out, only to keep him around with a hand in the business?

New information explains why.

Grand Junction Jackalopes accept sponsorship by Red Rock Auto Group

Logo of the Grand Junction Jackalopes baseball team

The Grand Junction Jackalopes announced in a May 29 press release that they have “agreed to a sweeping partnership that will make Red Rock Auto Group the official auto dealer of the Grand Junction Jackalopes.”

Local baseball fans will now be confronted with the name of “Red Rock Auto” at every turn in their Jackalopes game day experience. As part of the sponsorship deal, the Diamond Club at Suplizio Field will now “officially be renamed the “Red Rock Auto Diamond Club,” and fans will now enter Suplizio Field through gates re-named the “Red Rock Auto North Gate” or the “Red Rock Auto South Gate.” The grill is even named the “Red Rock Auto Grill.”

That will be tough to swallow for local baseball fans who fell victim to Red Rock’s illicit sales techniques.

Former Red Rock principals who left under a cloud open financial consulting business, go into real estate locally

Note that “Bookcliffs Investment Group, LLC” is not be confused with “Bookcliffs Financial Planning and Investments,” which is an entirely different company unaffiliated with Reade and Adams’ business.

Former Red Rock Nissan and Kia managing partner Brantley Reade and the former General Manager of Red Rock’s GMC dealership, Cord Adams, who both left Red Rock under a cloud on the same day last January, opened a financial investment business together last February, shortly after leaving Red Rock.

Reade and Adams were part of the so-called “fraternity” of managers from Tim Dahle dealerships in Salt Lake who came to Grand Junction to help run the Red Rock Auto Group. They were high-management casualties of the large-scale personnel churn that began near the end of 2022, after customers started revealing the illegal and unethical business practices they fell victim to while buying vehicles at Red Rock dealerships.

Confessions of a former Red Rock dealership service department employee

A former employee of Red Rock Hyundai in Grand Junction who quit as an act of conscience last year previously gave an interview in which he told how Red Rock financing and insurance (F&I) employees had been fleecing people and submitting false information to financial institutions on the sales side. The same person also worked in the service department at Red Rock Hyundai, so I contacted him again to talk about how service is billed at these dealerships. The conversation ranged into a discussion of other service practices as well.

The former employee revealed some disturbing practices he’d witnessed in the service department at Red Rock Hyundai. These, combined with what he had seen happening on the sales side weighed heavily on his conscience and led up to his resignation. Some of what he said he had seen included:

Second Red Rock Auto financial manager charged with crimes against customers

Daily Sentinel headline, August 29

A second former Red Rock GMC financial manager has been charged with forgery, criminal impersonation and identity theft within the last month after posing as a customer on a phone call to the Canvas Credit Union to try to expedite a customer’s vehicle loan.

Matthew Morris acted as an accomplice to Tiffany Miller, the first Red Rock GMC financial manager charged with the same crimes in early August. Both Morris and Miller were fired from Red Rock, but in her arrest affidavit Miller pointed to Red Rock management as pressuring her to commit the crimes. In the same affidavit (pdf), Morris said that Red Rock GMC Sales Manager Tyson Chambers and General Manager Caleb Stillman both knew he and Miller were making the fake calls to

Tyson Chambers, General Manager of Red Rock GMC

the lender and that they “and essentially encouraged the behavior.” Morris added that “he was terminated [from his job] not for making the call, but for being caught.”

Red Rock promotes its reviews on TV, but wait…

Screen shot of a Red Rock TV ad

The Red Rock Auto Group, which owns five dealerships in Grand Junction, has been advertising heavily on local news with ads that tout what they say are their many positive reviews.

We’ve already seen evidence, however, that indicates  Red Rock manipulates online reviews by coercing its employees to write positive reviews (a violation Google policy) and by purchasing good reviews from customers by offering them perks like free gas and oil changes in exchange for positive online reviews.

But we shouldn’t forget the slew of gritty and honest negative reviews that show the real difficulty Red Rock has caused so many customers, and the responses or lack thereof to such reviews from “the owner.”

A former Red Rock sales & finance employee tells how employees are treated, and how it affects customers

We’ve already seen that Red Rock auto dealerships in Grand Junction have drawn more than 15 times the complaints to the Auto Industry Division of other new car dealerships in town over the last two years, and that they used illicit sales tactics that sent many hard-working customers into desperate downward financial spirals. The Better Business Bureau slapped red alerts on several Red Rock dealerships due to “a pattern of complaints” about their contracts, service departments, and customer service.

By comparison, non-Red Rock new car dealerships in G.J., like Western Slope Auto, Bozarth Chevrolet, Grand Junction Subaru & Volkswagen, and Grand Junction Chrysler Jeep Dodge logged no customer complaints within the same time frame. This begs the question of why is there such a big difference between how Red Rock has operated, and how these other dealerships operate?

Evidence indicates Red Rock dealerships bribed customers for positive manufacturer surveys

We’ve already seen the evidence showing Red Rock dealerships worked to slant reviews in their favor on public-facing consumer review sites like Google Reviews and Yelp. A different facet of this deceptive behavior is how the dealerships treat vehicle manufacturers’ customer satisfaction surveys.

Members of the public use Google, Yelp, Cars.com, DealerRater and other review sites to help them decide who to patronize, so stacking reviews on these sites misleads the public. But auto manufacturers have their own proprietary, internal customer satisfaction surveys that they use to determine how well or poorly customers are being treated at their dealerships, and where their dealerships need improvement.

Vehicle makers expect honest responses to these surveys so they can improve their customers’ experiences, so submitting falsified answers to the car companies’ customer satisfaction surveys defrauds the vehicle manufacturers.

Two former Red Rock employees report that “bribing” and “harassing” customers to leave positive manufacturer surveys was routine at these dealerships while they worked there.

One former Red Rock service employee wrote in a text,

Red Rock Auto Group’s greedwashing campaign

Red Rock got this free media from the Daily Sentinel on January 19, 2023, with this photo of their donation to Court Appointed Special Advocates (CASA). Red Rock also got Joy Thompson of CASA to say “We love Red Rock” on a January 19, 2023 local KREX-TV news segment about the donation.

After a company has been outed as over-the-top greedy, there’s nothing left for it to do but make conspicuous donations to local charities to score public relations points and blow smoke to make people forget about how their business has harmed the community in the long term.

That’s likely why, near the end of 2022, after all the unseemly tactics Red Rock Auto dealerships had been using on customers to fleece them out of thousands of dollars over the last 7 years were exposed, Red Rock suddenly started ramping up its donations to local charities and promoting their donations in ads on TV and through free media given to them by local TV stations and newspapers.

A company that ingratiates itself to reputable charitable causes as a way to distract from its immoral acts is engaging in a form of “greedwashing,” a term developed during the taxpayer-funded federal bailouts of the big banks during the economic crash of 2008-2009:

Red Rock gets over 15x the complaints of other major G.J. auto dealers, but only slaps on the wrist by the state Auto Industry Division

An open records request to the Colorado Department of Revenue Auto Industry Division (AID) seeking all complaints submitted about the major Grand Junction auto dealerships over the last two years showed no complaints were submitted against Western Slope Auto, which sells Ford, Lincoln & Toyota, no complaints were submitted against Ed Bozarth Chevrolet & Buick, no complaints were submitted against Grand Junction Chrysler-Dodge-Jeep-Ram, and no complaints were submitted against Jim Fuoco Motors or Fuoco Honda in 2021, before it was sold to Red Rock Auto Group in April of 2022, but within the last two years at least 15 complaints were submitted about Red Rock Auto Group’s stores. There were at least two more complaints beyond the 15 documented ones the Auto Industry Division sent that were submitted against Red Rock, but one of them was still undergoing investigation and they could not release information on it, and the other was dismissed after the complainant chose not to pursue it further. Another complaint against Red Rock was submitted to the Colorado State Attorney General, who is investigating it. This makes a total of 18 known complaints lodged against Red Rock Auto Group stores in Grand Junction in the last 2 years.

Criminal investigator who was investigating Red Rock quits & goes to work for Red Rock

Dale Sundeen (Photo: Auto News)

Dale Sundeen, the Colorado Department of Revenue Auto Industry Division’s criminal investigator who was investigating Grand Junction’s Red Rock dealerships, quit his job with the state and went to work for Red Rock Auto Group as their “Corporate Director of Compliance.”

Shake up at Red Rock

Brantley Reade (far left end of check)

As of today, Brantley Reade, Platform Manager for Red Rock Nissan, is no longer with the Red Rock Auto Group. He was formerly the designated person to call if you had been victimized by a deal at Red Rock’s Nissan or Kia dealerships.

So now, if you were a victim of a deal at a Red Rock dealership in which your digital signature was added to a contract without your being able to first see and expressly approve or reject any charges added to it (like extended warranties, maintenance agreements, protective coatings, key fob insurance, GAP insurance or other items), or if you found your signatures have been forged on any documents from your deal, or if your gross income, monthly housing payment, description of your vehicle or any other information was misrepresented to your lender on your loan application and Red Rock got you into a loan too big for you to handle, contact Red Rock owner Bryan Knight at (801) 792-3711 or email him at bryank@tdauto.com to make an appointment to discuss your situation and give him a chance to make it right.

KREX-TV broadcasts 5 minute news segment about Red Rock forgeries

KREX-TV last night ran a 5 minute news segment about Red Rock dealerships, which are currently under investigation by the state for problems including forgeries of customers’ signatures on legal/financial documents like contracts, Powers of Attorney, title and loan documents, and the addition of thousands of dollars worth of extras to customers’ contracts without their knowing, like extended warranties and special coatings.

Below is the full statement of a former title clerk who worked at Red Rock. This person asked to remain anonymous. This statement was included in the KREX news segment, but it merits fuller attention because of its gravity. This person’s employment at the dealership has been verified, and they had experience with the Mesa County Department of Motor Vehicles before going to work for Red Rock:

What to do if you think you were taken in a bad deal at a Red Rock dealership:

I did this drawing myself.

Did you buy a vehicle from a Red Rock dealership and think you may have fallen victim to shady sales tactics? If so here’s some help:

First, think back to the day of your purchase:

Did the financial manager have you sign your name electronically on an IPad or email Docu-sign link? Did the financial person show you your full contract including the page with all the numbers on it, with the total price of the purchase and all the extras, before your signature appeared on it? Did the financial person tell you about the extras that had been added to your contract — extended warranties, maintenance agreements, oil changes, coatings, insurance, etc. – and did you openly agree to pay for all of them, or were they hidden from you?

Red Rock starts getting the message, unwinds deal for strapped couple & gives out personal cell phone numbers of local partners for people to call if they’ve been wronged

Red Rock Nissan at 2582 Highway 6 & 50 in Grand Junction

The Red Rock Auto Group seems to be starting to get the message about the financial hardship they’ve been causing people by defrauding customers and carrying out business in bad faith.

This week Red Rock Nissan went out of their way to help “the Andersons” (not their real name), a struggling young couple with three kids, two of whom are special needs kids, who were recently featured in this blog as an example of the kind of bad deals people were unknowingly getting into at these dealerships.

Another former Red Rock employee gives more information about how the dealerships defrauded customers, banks, lenders

Red Rock Nissan at 2582 Highway 6 & 50 in Grand Junction

Note: I am re-posting this article from last December, now that a second former Red Rock dealership financial manager, Matthew Morris, has been charged with criminal impersonation, forgery and identity theft. This article contains information from a former Red Rock financial manager about how Red Rock allegedly (and routinely) defrauded customers as well as lenders (banks and credit unions). The article got little notice at the time I posted it, but it’s even more relevant now that criminal charges have been brought against a second Red Rock employee, who has implicated upper management in these activities..

Yet another former employee of a Red Rock auto dealership has contacted AnneLandmanBlog wanting to unload about what they experienced while working for Red Rock, and wanting others to know how business is done at these dealerships. This person has more detailed knowledge about financing of vehicle deals. Their name is withheld at their request. I asked this person follow-up questions based on information provided by a previous Red Rock employee who came forward and told about the illegal acts allegedly taking place at the dealerships, like falsifying customers’ financial information to lenders, misuse of digital signatures, forging of signatures, and more. This new person has even more detailed insight into these dealerships, the things they do to customers and banks, and how and why Red Rock dealerships operate so differently from other dealerships  in town and around the country.