Daily Decisions T Employee Did the salesman know he was violating a law? Or did his actions fall into a gray area with less well-defined parameters? Did he understand the implication of his actions? Did he realize that, if caught, he could be charged with a federal offense and his employer fined millions of dollars? As it turns out, the salesman had allegedly been running a scam for seven years that involved actions that go beyond normal dealership procedure and can only be described as fraudulent. The story, however, calls attention to an issue at the front lines of dealership compliance. Too often, we find employees bending the rules because they’re “just trying to get a deal done,” or, “it benefits the customer, so it seems like the right thing to do.” For example, making small changes to a credit application, not booking the vehicle accurately, overlooking a statement made by the customer that the bank would need to know, or coaching the customer to ensure they can receive rebates or incentives. The decisions may be made with a lack of understanding of the consequences or a belief that, if caught, the result will be a simple reprimand. Dealership employees need to be aware that what may seem like a small compliance violation could lead to the loss of a job, potential loss of a relationship with a finance source, increased scrutiny from a federal or state agency, or federal charges being filed directly against them. Dealership Following the rules protects the dealer, the employee and the customer. In the case of the salesman charged with wire fraud, was the dealership aware of his actions? Did management look the other way because of the increase in sales volume, income or recognition from the manufacturer? How many other employees knew what was happening and chose not to say something? Gone are the days when we can only be concerned with our customer interactions, turning a blind eye to what our coworkers are doing. We all take equal responsibility in protecting our employer and, by extension, our livelihoods. A key step to protecting the dealership, its employees and customers is appointing an individual to implement and oversee a compliance management system (CMS). It’s an ongoing process that requires training and maintenance. Equally important, a strong ethical culture must come from the top down. Dealers should clearly define expectations so employees understand that illegal and/or unethical behavior will not be tolerated. Departments should work closely and cohesively to communicate about compliance objectives. Employees should be provided with a working knowledge of the rules that allows them to meet performance objectives using compliant practices. And, they should recognize their responsibility to speak up if a colleague is jeopardizing the dealership by violating rules or ethical standards. Times are a-changing. Our industry is being watched now more than ever. Both dealer principals and employees are being held accountable for their actions. What may seem like a small compliance fudge could result in a big fine or class-action lawsuit. Federal and state agencies have made it clear that ignorance is not a defense. The solution is simple; training and culture – knowledge of the rules and zero tolerance for noncompliance. It’s not rocket science. 15 by Shannon Robertson Executive Director AFIP he news about a car salesman in Detroit charged with wire fraud and conspiracy and the resulting $8.7 million fine for his employer raises questions concerning his actions, the dealership’s processes, and whether his colleagues were aware of his criminal behavior. Federal prosecutors recently arrested the nation's top Fiat Chrysler Automobiles salesperson. He was charged with helping orchestrate a wire fraud conspiracy that cost the automaker $8.7 million. Parkway Chrysler Dodge Jeep Ram salesman Apollon "Apollo" Nimo, 34, of Macomb Township was charged with wire fraud and conspiracy to commit wire fraud for allegedly orchestrating a scam that involved illegally selling employee discounts to non-qualified buyers. He could face up to 20 years. The complaint describes a lucrative conspiracy that started in 2014 and netted Nimo $700,000 in payments from Fiat Chrysler, which compounded the automaker’s loss of revenue. The alleged conspiracy was discovered by Fiat Chrysler investigators who learned that employee numbers were being bought and sold in private Facebook groups that served as an online black market.
16 Publizr Home