A now-closed car dealership in The Colony is being investigated for fraud after instructing customers to write checks for aftermarket warranties or GAP insurance and keeping the money, police say.
Reserve Auto Group, which closed in December, cashed the checks intended for third-party coverage, but kept the money itself, The Colony police said. The practice led customers to believe they had coverage when they did not.
Police said the practice begain in late 2023 and lasted until the dealership's closure in December 2024. Reserve Auto Group was located in the 6600 block of Cascades Court in The Colony.
Most customers did not become aware of the fraud until they needed to file a claim, only to learn they did not have a policy in their name, police said.
Police said they believe there are more victims and asked anyone who purchased a vehicle from Reserve Auto Group in 2023 or 2024 to review their policies and contact Det. John Downing at 972-624-3915 or jodowning@thecolonytx.gov if they believe they have been a victim.
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