Birmingham-based Ducati dealership has license revoked after state uncovers fraud
BIRMINGHAM, Mich. (FOX 2) - A motorcycle dealership based on Woodward Avenue that sells Ducati motorcycles had its business license suspended by the state after reports of fraud, forgery, and altered delivery dates uncovered during an investigation by the Michigan Department of State.
Ducati of Detroit, located in Birmingham, was accused of creating an "imminent threat to the health, safety or welfare of the public" a news release from the department said.
According to MDOS, the issues at the dealership started in May 2017 when a general compliance inspection uncovered the dealership was not submitting proper sales tax, as well as fraudulent acts in connection with selling vehicles.
An investigation started after a complaint from a former employee of Ducati of Detroit.
A warning letter was went in March of 2018 before a preliminary conference five years later in 2023 to address violations that were related to an inspection earlier in the year.
They included several failures to properly maintain records. After implementing a suspension, the owner of the dealership - identified as Charles Knoll - voluntarily agreed to have his license revoked. It went into effect on Aug. 7, 2024.
Among the violations include:
- Committing fraud in connection with selling or dealing with vehicles - including illegally collecting the sales tax on sold vehicles, forging purchasers' signatures, and altering the deliver date of vehicles to avoid paying late fees
- Failing to provide records for inspection upon request
- Issuing temporary registration on a different date than when vehicles were delivered
- Failing to correctly document the dates of purchase
In addition to admitting to violating the Michigan Vehicle Code, the company agreed to pay a $53,000 penalty.