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EX-USED CAR DEALER, SALESMAN TO PAY NEARLY $20,000 TO SETTLE SUIT

 HARRISBURG, Pa., Dec. 21 /PRNewswire/ -- The operator of a former Lackawanna County used-car dealership and one of his salesmen will pay nearly $20,000 in restitution, penalties and costs under agreements settling a suit filed against them by the Office of Attorney General.
 Separate consent petitions filed today in Lackawanna County Common Pleas Court by Attorney General Ernie Preate Jr.'s Bureau of Consumer Protection identify the defendants as James S. Gallagher of Scranton and Anthony Karwoski of Dunmore.
 Gallagher operated the former Carland USA used-car dealership at 319 S. Blakely St., Dunmore, and Karwoski was a Carland USA salesman, according to the petitions.
 In a suit filed in March 1988, the bureau charged that the defendants violated state law, in part by selling vehicles to which they didn't have title, processing phony car loan applications and failing to credit consumers for their down payments.
 The agreement with Gallagher requires him to pay a total of $10,500 in restitution to nine consumers, a $1,500 civil penalty and $500 in costs of investigation.
 In addition, Gallagher is barred from working as a vehicle dealer or salesman in the future, according to the agreement.
 The agreement with Karwoski requires him to pay a $1,000 civil penalty and $550 in investigation and court costs. Karwoski also agrees to turn over the title for a 1985 Cadillac to a local bank.
 The agreement notes that Karwoski has paid $5,400 to a consumer in the form of refunds and auto repair cost restitution. Karwoski also promises to help the consumer get a vehicle to replace one she bought from Karwoski.
 In addition, Karwoski is barred from working as a vehicle dealer or salesman prior to next year. If he becomes a vehicle dealer at any time subsequent to that, he must obtain a $10,000 performance bond payable to the Office of Attorney General, according to the agreement.
 The agreements, which are subject to court approval, were negotiated by Deputy Attorney General J.P. McGowan, attorney-in-charge of the bureau's Scranton office.
 McGowan said that since the filing of the suit in 1988, negotiations between the bureau and c?al lending institutions have resulted in additional savings of $84,315 for a total of 15 consumers.
 The savings take the form of rewritten financing agreements based on the defendants' original representations to consumers as to the value of vehicles sold and the costs of buying and financing those vehicles, McGowan said.
 -0- 12/21/92
 /CONTACT: Jack J. Lewis, assistant press secretary of the Office of Attorney General, 717-787-5211, or at home, 717-657-9840/


CO: Pennsylvania Office of Attorney General ST: Pennsylvania IN: SU:

MK -- PH018 -- 8848 12/21/92 13:02 EST
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Date:Dec 21, 1992
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