Arrest follows investigation into complaints about Newman Auto Plaza

NEWMAN – The former owner of Newman Auto Plaza faces 35 felony counts of grand theft for allegedly defrauding customers at the now-closed dealership.

Officials of the Department of Motor Vehicles enforcement division said Norris A. Poulsen, 58, of Newman, was arrested last Wednesday on a warrant issued by Stanislaus County Superior Court.

According to a DMV news release, Poulsen allegedly defrauded customers by failing to pay off trade-in vehicles, selling vehicles and not properly transferring titles and not paying for vehicles that had been purchased at auction.

The estimated losses in the case are nearly $600,000, according to the DMV.

“All the parties involved are victims, whether it is the bank, the auction company or the consumer,” commented Tom Wilson, supervising investigator for DMV’s Fresno investigations office.

Wilson said more than 30 complaints were received by the DMV after Newman Auto Plaza abruptly closed its doors in September.

In some cases, he said, the dealer is accused of purchasing vehicles at auction through a line of credit but not paying for them. Those vehicles, Wilson explained, were then sold to consumers who could not get titles.

In other cases, the DMV contends, the dealer failed to pay off outstanding loans on trade-ins or vehicles sold by the dealership on a consignment basis.

Some customers had to continue making payments on those loans, Wilson said, while others were able to reach a resolution with their lending institution.

“It creates a lot of difficulty (for the customer),” Wilson commented. “Nobody wants a negative mark on their credit for something that should have been handled by the dealer.”

Wilson said Poulsen was reported missing after the dealership closed.

“Right after he disappeared, the complaints started coming in. They continued through January and February,” he explained. “It can take several months for people to realize that there is a problem.”

The DMV is actively attempting to locate titles for the vehicles sold to consumers to help resolve the transfers. So far, DMV has been able to help obtain 10 titles for local consumers.

Wilson said the DMV was able to locate Poulsen after receiving an anonymous tip that he was working in Dublin, at a non-automotive business.

He was booked into Stanislaus County Jail. Bail was set at $500,000.

Wilson said additional consumer complaints could be filed against Newman Auto Plaza.

He said any customer of the dealership who discovers an irregularity in a transaction may contact the Stockton DMV investigations office at 948-7991.