NEWARK — Attorney General Peter C. Harvey announced that the State today filed suit against a Wall Township resident who, by his own admission, sold at least 90 used cars since 1998, many from his Glendola Road home, without being licensed to do so and without submitting required state fees.

The Wall Township Police Department contacted the New Jersey Division of Consumer Affairs for assistance after receiving complaints from neighbors about a commercial business operating in a residential area in violation of local zoning laws.

The State filed suit against John B. McShane in Superior Court in Monmouth County following a joint investigation by the Wall Township Police Department and Consumer Affairs. The complaint alleges McShane violated New Jersey’s Consumer Fraud Act and Used Car Lemon Law by:

• Operating as a used car dealer without obtaining the required license and without establishing a place of business;
• Failing to post the $10,000 bond required of all used motor vehicle dealers;
• Failing to collect the required 50-cent administrative fee on each sale of a used vehicle and not submitting those fees to the State’s Used Car Lemon Law Unit; and
• Failing to disclose required information such as odometer readings in advertisements.

Officials noted that McShane previously held a license to sell motor vehicles but has been unlicensed since 1987. Used car dealers are required to establish a place of business where vehicles are displayed and serviced.

"In addition to allegedly breaking the law, McShane disrupted the lives of his neighbors by maintaining a car lot on a residential street," Attorney General Harvey said. "The ongoing sale of used cars became a quality of life issue for neighbors. He also did not protect consumers by having a bond in the event that the cars were lemons."

"Having previously held a dealer’s license, McShane knew what requirements he had to meet to legally sell cars, but he chose to ignore them," said Acting Consumer Affairs Director Jeffrey Burstein. "He failed to provide the safeguards to consumers that the law requires."

The New Jersey Motor Vehicle Commission assisted Consumer Affairs’ staff with their investigation into this matter.

The State’s lawsuit seeks compliance with laws governing the sale of used motor vehicles, payment of all delinquent fees, assessment of civil penalties for each violation that has occurred and restitution for the cost of the State’s investigation.

Deputy Attorney General Jonathan D. Rudolph is representing the State in this matter.

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