ACT Towing L.L.C. aka. All City Towing, Quick Auto Sales, Hanks Auto Sales, Jeffery Dunn, Todd DeMasseo, Dan Rush, Janet Rush and Florence Tess. Allegations from civil law suit filed in Maricopa County CV2017-009849. These allegations claim ACT Towing and/or its agents committed fraud against the City of Phoenix Arizona in regard to unclaimed vehicles. The lawsuit alleges banking fraud by making illegal auto loans without a banking license.
In June of 2016 ACT Towing held (and still holds) a City of Phoenix towing contract. The contract states that all unclaimed cars must be sent to an auction for public sale. An auction ensures that the fair market price is obtained for each vehicle. Once the sale is complete the moneys are divided between ACT Towing and the City of Phoenix. The allegations state that ACT Towing and its agents were bypassing the auction and sending the vehicles directly to their sister company Quick Auto Sales. The city would not receive fair market value for the vehicle and Quick Auto Sales would sell the vehicle at full retail value. This is a breach of contract at the bare minimum and may be subject to criminal charges. Just one vehicle in the $20,000 range would defraud the City of Phoenix as much as $8000.
Once the vehicle arrived at Quick Auto Sales illegal “buy here pay here” loans would be offered to customers. Without a banking license, this is illegal according to ARS 6-391. Proof of banking violations by Quick Auto Sales were sent to the Arizona Department of Financial Institutions in April of 2017. Once these allegations were made public Quick Auto Sales was closed by its owners.
The Representatives of the City of Phoenix, the Code Enforcement Division (towing contract) as well as the Department of Financial Institutions were all informed of these allegations. I believe the City of Phoenix and ACT Towing attorneys are trying to “sweep this under the rug”.
The City of Phoenix holds the answers to these allegations. These towing contracts provide the City of Phoenix Hundreds of Thousands of dollars in revenue and these types of allegations should be taken extremely seriously. The City of Phoenix should conduct an audit of all the unclaimed vehicles ACT Towing has had over the last 2 years. This audit would show if each unclaimed vehicle was sent through a public auction.
These allegations were made by a “whistleblower”. These allegations were made public in the civil law suit CV2017-009849 in Maricopa Superior Court. The lawsuit is against ACT Towing for libel, wrongful termination and defamation.