Business owner alleges dealership fraud, conspiracy

A Harris County businessman has sued an auto dealership and two individuals, alleging fraud.

Arun Dwivedi of Seabrook, filed individually and on behalf of his company, Amma Auto, March 19 in Galveston County District Court against against Noe Martinez, doing business as Texas Autoworld doing business as Santa Fe Autoplex, and Brian Trudeau, alleging fraud.

According to complaint, Trudeau approached Dwivedi in early 2012 to suggest a business partnership with Martinez. Without revealing Trudeau had a criminal background involving theft and embezzlement charges, both defendants persuaded Dwivedi to lease Texas Autoworld’s place of business for a monthly rent of $1,600 plus $300 for each vehicle sold, the suit states.

Alleging he was threatened, Dwivedi, who also agreed to invest in the venture to acquire inventory and construct additional buildings, maintains previous customers of the defendants were sent to him to resolve pre-existing conflicts.

When Dwivedi declared his intention to leave the business, 10 vehicles went missing, Martinez changed the business’ name back to Santa Fe Autoplex, a previous alias, and the plaintiff suffered a negative credit impact, the suit states.

The plaintiff cites loss of more than $500,000 and financial insolvency, and alleges breach of contract, unlawful property conversion, fraud, civil conspiracy and intentional infliction of emotional distress.

Dwivedi seeks: actual damages of $514,050, plus exemplary, statutory and additional damages; interest; attorney fees; expenses and costs. He is represented by attorney Steven Parker of The Parker Law Firm in Kemah.

Galveston County District Court case number: 15-CV-0282