What do you do when a subpoena or other compulsory process like a garnishment arrives at your dealership? Chances are that you probably never see it. In most dealerships, the general office handles such matters. Hopefully, you have trained the office personnel to review the document carefully to see if it is proper legal process from a state or federal court or agency with jurisdiction over the dealership. If the employee handling it believes it is, the dealership probably responds appropriately. However, if that is the end of it, your system is not designed to protect your dealership.
Your system should include regular reports to management of compulsory process received and handled in the general office. A pattern of compulsory process may tell you that there is a situation in your dealership that requires attention.
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Subpoenas for Deal Records. An occasional subpoena from law enforcement for deal records is not unusual. However, if the dealership is receiving subpoenas seeking multiple deal records, pay careful attention. In a money-laundering investigation, law enforcement questions drug dealers and other felons about what they do with their cash. They ask where the felons buy their cars. A series of subpoenas seeking deal records may indicate that law enforcement is looking at the dealership’s sales to felons and may be an indicator that there is a problem in the dealership requiring attention.
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Subpoenas for Employee Records. Law enforcement subpoenas for employee records may indicate that law enforcement is looking at dealership employees for potential wrongdoing. And it is a short step for law enforcement to assume that the dealership is involved in the wrongdoing.
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Identity Theft Investigations. ID theft is the most common economic crime committed today. A series of subpoenas or other compulsory process seeking information concerning ID theft victims could indicate a problem in the dealership. There may be employees operating an identity theft ring. There may be employees who are cooperating with an ID theft ring. There simply may be employees who are not careful with the dealership’s records. Any of these problems is a serious concern for the dealership.
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Garnishments. Sometimes employees have disputes with creditors. An isolated garnishment is probably not something to be concerned about. However, if the dealership gets a series of garnishments for an employee, especially an employee who has access to valuables such as a cashier or a parts department employee, you may want to give the situation some attention.