Cash for Clunkers Fraud
The “Cash for Clunkers” program was established in June of 2009 to help stimulate auto sales and remove high fuel-consuming vehicles from U.S. roadways. Under the program, consumers could trade in older vehicles and receive a $4,500 credit from car dealers to help purchase more fuel-efficient vehicles. Car dealers could then claim reimbursement from the government for the credit issued to car buyers.
Unfortunately, the organization in charge of administering the reimbursement, the National Highway Transportation Safety Administration (NHTSA) has noticed incomplete or incorrect applications for credits and believes that there may be schemes to claim false payment from the government.
If you are aware of any fraudulent schemes in connection with the Cash for Clunkers program, you may be able to pursue legal action against those responsible in the form of a Qui Tam lawsuit. For more information, contact an experienced whistleblower attorney of Tycko & Zavareei, LLP at 202-973-0900.
Common Cash for Clunkers Schemes
Schemes commonly associated with the Cash for Clunkers program include:
- Giving more than one credit per person
- Accepting vehicles that are not drivable
- Accepting vehicles that are not insured
- Ignoring regulations regarding the price of the purchased vehicle and how to deal with leased vehicles
- Allowing credits to be used for vehicles not approved by the program including off-road vehicles, trucks, and RV’s
- Failure to send the traded vehicle to an approved facility for disposal
If you are aware of any schemes related to the Cash for Clunkers program, you may be eligible for a reward if you can bring a successful legal action against persons or companies committing the fraud.
Contact a Qui Tam Lawyer
A Qui Tam lawsuit can help expose Cash for Clunkers fraud and can help recover money paid to companies and individuals because of fraudulent claims. Contact an experienced Qui Tam attorney of Tycko & Zavareei, LLP at 202-973-0900 today to discuss the specifics of your case.
