Auto House owners banned from auto industry in NC

MOORESVILLE, N.C. — Channel 9 obtained new documents in a yearlong investigation involving a local used car dealership that has been accused of mislabeling vehicles.

The documents are a part of a settlement agreement that forbids the two former owners of Auto House to ever operate in North Carolina again.

DOCUMENT: Read the settlement 

Action 9's Jason Stoogenke exposed the problems with mislabeled vehicles being sold as higher-end more expensive models and other problems with the vehicles.

TIMELINE: Auto House Investigation

• MAY 12: Action 9 exposes Auto House for selling mislabeled Nissan Altimas
• MAY 12: DMV launches investigation into both Auto House locations: Mooresville and Salisbury
• MAY 19: Action 9 confirms Auto House also sold mislabeled RAM pickup trucks
• MAY 20: Attorney General's Office announces it is investigating Auto House
• JUNE 2: Action 9 confirms more cases of mislabeled vehicles
• JUNE 2: Bank stops financing Auto House customers; another bank confirms it's investigating
• JUNE 3: DMV agents execute search warrants at both Auto House locations
• JUNE 14: Action 9 confirms Auto House also sold a mislabeled Chevy Silverado pickup truck
• JULY 22: Multiple customers accuse Auto House of not disclosing vehicle damage
• OCT. 11: DMV revokes Auto House's Mooresville license and fines it $33,000
• OCT. 14: Auto House gets permission to stay open while it fights DMV decision
• NOV. 2:  DMV agents believe Auto House lied to get customers financing
• DEC. 1: Mooresville location closed
• DEC. 2: Salisbury location closed
• DEC 13: Auto House owners banned from auto industry in NC

Both Auto House of Mooresville and Auto House of Salisbury were put up for sale earlier this month.

Channel 9 discovered Tuesday there will be even more changes for Auto House.

The settlement agreement ordered former owners Sam Ketner and Nathaniel Brown to never serve as a "shareholder, officer, director, salesman, employee," or be involved in any day-to-day operations in the auto industry in North Carolina.

Months ago, the Department of Motor Vehicles investigated both facilities and even cited Channel 9’s investigation as a reason for the investigation.

After the state investigation, Auto House was ordered to pay a $33,000 civil penalty.

Auto House must sell all of its vehicles to a third-party dealer or transfer the ownership of the cars.

This settlement does not impact the ongoing Attorney General's Office investigation.

The state secretary of transportation who oversees the DMV spoke publicly about the case on Wednesday.

"The law has gotten enforced and there's been a consent agreement entered that has carried out the duty of the department to make sure that people's interests are protected," Secretary of Transportation Nick Tennyson said.

Cox Media Group