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State Wins $840,000 Judgment Against Rahway Used Car Dealer BM Motor Cars for Consumer Fraud
New Jersey has secured a judgment exceeding $840,000 against a Rahway used car dealership after a court found the business engaged in years of deceptive practices, including hiding vehicle information and violating a prior consent order, state officials announced.
Acting Attorney General Jennifer Davenport said the judgment against Federal Auto Brokers Inc., doing business as BM Motor Cars, includes a $793,500 civil penalty and more than $49,000 in attorneys’ fees and investigative costs. The case was decided in Superior Court in Union County, where the court concluded the dealership committed hundreds of violations of state consumer protection laws.
Nearly a Decade of Violations
According to the Office of the Attorney General and the Division of Consumer Affairs, BM Motor Cars defrauded consumers for nearly a decade by failing to disclose critical information about used vehicles it sold. The court found the dealership violated New Jersey’s Consumer Fraud Act, state motor vehicle advertising regulations, and a 2018 consent order that had already penalized the business for similar misconduct.
The Division of Consumer Affairs previously imposed a $55,899 penalty in 2018 after determining the dealership sold “gray market” vehicles—cars imported without authorization that may not meet U.S. safety or emissions standards—without proper disclosures. Despite agreeing to reform its practices, the dealership continued engaging in unlawful conduct, prompting the state to file a civil lawsuit in 2023.
Hundreds of Violations Found
In its ruling, the court found BM Motor Cars committed 511 violations over a two-month period, describing the conduct as a “pattern of non-compliance” and a lack of good faith. The violations included hiding dealer preparation fees in online advertisements, failing to provide required pricing disclosures, improperly obtaining inspection waivers from consumers, and failing to supply odometer disclosure statements when transferring vehicle ownership.
The court also found the dealership continued selling gray market vehicles without required warnings, exposing buyers to potential safety issues, costly repairs, and regulatory problems.
Court-Ordered Penalties and Injunction
On Jan. 20, 2026, the court granted the State’s request for final judgment. In addition to the civil penalty and reimbursement of costs, the order permanently enjoins BM Motor Cars from engaging in unfair or deceptive practices and requires the dealership to comply with all applicable state and federal laws going forward.
“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.
Enforcement and Investigation
The State was represented by Deputy Attorney General Sara Koste under the supervision of Deputy Attorney General Jesse J. Sierant of the Consumer Fraud Prosecution Section. The investigation was conducted by Investigator Kelly Fennell of the Office of Consumer Protection within the Division of Consumer Affairs.
State officials said the judgment underscores New Jersey’s continued enforcement of consumer protection laws and its effort to ensure transparency and fairness in the used car marketplace.
