Minnesota attorney general's office is seeking a temporary injunction
that will force the Electric Vehicle Corp. to inform its new customers
in writing that the company, which sells fiberglass cars, fails
to fill its orders or fill them several months late.
injunction, which will be discussed during a hearing Thursday in
Hennepin County District Court, is part of a civil complaint against
Electric Vehicles, Minneapolis, that charges the company and its
two principal officers with consumer fraud.
complaint was filed last week and asks for $25,000 I penalties for
each violation of Minnesota consumer laws. It names Gary Courneya,
president, and Randy Greges, vice president, as defendants.
complaint states that the company, which sells fiberglass car bodies
installed on Volkswagen Beetle chassis and powered by gasoline or
electric motors, made fraudulent or misleading statements to customers.
said Tuesday that the charges in the complaint are not true. "We're
selling cars and we're making cars," he said.
suit also states that customers who paid the company thousands of
dollars for the cars did not receive them or received vehicles that
were missing parts and were inoperable.
suit charges that the company also misled customers who agreed to
be brokers for the company and sell the cars within geographic regions.
and his company, the suit states, "falsely represented to prospective
brokers that they would be able to make substantial amounts of money,"
if they agreed to sell the cars for Electric Vehicles.
documents state the company was selling the vehicles and a brokerage
program for $20,000 and that participants were to get their cars
within four to six weeks. The company was selling 30 to 40 autos
each month but has the capacity to make only 10 or 11 each month,
the documents said. The company allegedly has orders for as many
as 100 cars.
however, said that the company is making 20 to 25 cars each month.
Barrett, special assistant attorney general who filed the complaint,
said he does not know how many customers have lost money or received
defective cars from the company. He also said he did not know what
Electric Vehicles did with the money it received from customers.
week Barrett won a temporary restraining order in Hennepin County
District Court to prevent Electric Vehicles from moving its financial
records, plant equipment and employees to a warehouse in California,
according to the court documents. Courneya said he never had any
intention of moving the company to California.
Vehicles used to be known as Classic Electric Car Corp., and sold
electric car kits. Both companies are owned by Thor Corp., which
used to do business as Bradley Automotive.
Automotive filed bankruptcy proceedings under Chapter 11 of the
Federal Bankruptcy Code in 1978. The proceedings on the bankruptcy
case were closed in April 1980 and the company resumed business
on its own. Six months later, about the time its name was changed
to Classic Electric Car Corp., customers began complaining about
late deliveries and nondeliveries of purchased cars, according to