Dec 10, 2024

Dealership owner ordered to stop selling cars in Kansas

Posted Dec 10, 2024 4:31 PM
Photo National Highway Traffic Safety Administration
Photo National Highway Traffic Safety Administration

SEDGWICK COUNTY – A $394,197.00 default judgment was entered against a Wichita car dealership owner for engaging in deceptive acts and willfully violating a previous consent judgment under the Kansas Consumer Protection Act, according to the Sedgwick County District Attorney's office.

The matter was investigated by the Office of the District Attorney’s Consumer Protection Division after receiving a consumer complaint against Kayode Ajibolade and his dealership, Carnation LLC.

One of the Carnation locations on East Lincoln in Wichita. Google image
One of the Carnation locations on East Lincoln in Wichita. Google image

The Consumer Protection Division alleged that Kayode Ajibolade, also known as Olukayode I. Ajibolade, violated the Kansas Consumer Protection Act by failing to disclose that a car had blown airbags before selling it to the consumer.

After purchasing the car, the consumer later found an airbag simulator device which disabled the airbag light on the dash, concealing the fact that the airbag had been deployed. Further investigation by the Consumer Protection Division found 12 more cars sold by Ajibolade and Carnation in the first quarter of 2023 with blown airbags.

Ajibolade and Carnation failed to disclose the blown airbags when selling the cars to consumers from the car lot at 1301 E. Lincoln.

In 2019, Carnation LLC entered into a prior consent judgment with the Consumer Protection Division in which it admitted to a deceptive act for failing to disclose a blown airbag.

In the current case, SG2024CV00282, the Court previously found in April, 2024, that Carnation’s sales of each of the 13 cars with undisclosed and concealed blown airbags constituted willful violations of the 2019 consent judgment and the KCPA. The court ordered Carnation LLC to pay $2,000.00 per car in restitution to each of the 12 consumers for a total of $24,000.00. The restitution was later paid by the dealership’s bonding company. Carnation was also ordered to pay $390,000.00 in civil penalties, along with court costs and investigation fees. The court also revoked Carnation LLC’s license to do business in the State of Kansas and issued a permanent injunction against Carnation LLC from selling any motor vehicles within the State of Kansas.

The latest default judgment was entered against Carnation’s owner, Kayode Ajibolade, by Judge William Woolley on November 22, 2024. In this latest judgment, Ajibolade was found to be personally liable jointly and severally” with Carnation LLC, for the remaining balance of the judgment, $394,197.00.

In addition, the court revoked Ajibolade’s license to do business and permanently prohibited him from selling cars in the State of Kansas.

The District Attorney reminds car buyers to exercise care when shopping for a used vehicle. Because devices can be used to conceal that a car is missing functioning airbags, even if inspected by a mechanic, it is important to also examine a Carfax or similar history of the vehicle before purchase to identify accidents that may have resulted in the deployment of airbags. In addition, it is recommended that the consumer perform a general online search of the VIN number of a prospective car purchase, which can often reveal photos of prior damage to the car.