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NY Dealership Sues Former GM Over Missing $724,176

April 30, 2018 0 Comments

According to TimesUnion, the former owners of Orange Motor Co. in Albany are suing a longtime general manager over missing money.

Last month, a civil lawsuit was filed against Carl Keegan in the Supreme Court in Albany County. The suit claims that the shortfall – consisting of $724,176 – was discovered after the company was sold to the Depaula Auto Group last May.

Currently, DePaula runs the Ford and Mazda dealerships it purchased from Orange Motor Co.

“As a result of the sale of its assets, the plaintiff noted certain unauthorized transactions and financial deficiencies,” the suit reads.

A “large number of [unauthorized] transactions” between January 2014 and May 2017 were identified during a forensic investigation, and Keegan was allegedly involved in the transactions.

The suit also claims that the company’s books were marked up “in such a [manner] to obscure the details.” Keegan, who worked for Orange Motor Co. for over 45 years, didn’t immediately respond for comment.

The suit provides no details on how the money went missing, but does claim the shortfall resulted in Orange Motor Co. having a lower market value at the time of the sale.

The attorney who filed the suit on behalf of the company, James Towne Jr., didn’t immediately respond for comment.

Orange Motor Co. was started by the Touhey family in 1916, and the family owned the dealership until the sale last May for an undisclosed amount.

About the Author:

Dave Martinson is a broadcast journalist for DrivingSalesNews. He has a background as a TV News Reporter, Anchor and Producer. He has also worked in Digital Marketing and Human Resources. He received his bachelor’s degree in Communication from Brigham Young University – Idaho. He’s married and originally from the state of Washington. He’s a huge football fan and enjoys the outdoors.