Car dealer in probe
says he’s bankrupt

Buyers claim they got nothing
after making a payment
or trade-in

A car dealer who allegedly took down payments and trade-ins for new and used cars but failed to deliver them filed for Chapter 7 bankruptcy, claiming more than $1 million in debt and $21,935 in assets.

The state Regulated Industries Complaints Office is investigating two complaints filed against Jason Kim, doing business as Dae Han Autos. Because the investigations are ongoing, the details are not public.

Kim "scammed a lot of people of their money," said Henry Yong, a sales manager at Pflueger Auto Value Center, who is suing Kim for $90,000.

Yong said Kim had vehicle identification numbers for the cars, and financial institutions approved loans on sales contracts, believing he had delivered them.

"He found two very accommodating banks," Yong said. "He never did have these cars. He just kept the money."

Kim was operating out of a Kakaako office, and would show cars at a South Street parking lot but failed to deliver the vehicles, Yong alleges.

Kim's bankruptcy petition, filed Nov. 11, reveals 101 creditor claims amounting to $1,009,014.48.

Of that, $640,822.32 was for cars he supposedly sold, most of which were financed. Sales contract dates provided go back to last year, but the bulk of the cars were sold from May to September.

Another $103,899 is listed in down payments on cars made by individual creditors.

He also lists Yong as a creditor, with a $90,000 claim for breach of contract, and Young Ha Kang and his wife, with a $16,000 claim for breach of contract.

Creditor banks, credit unions and car dealerships are listed, with claims for sales agreements for 2002 through 2005 model cars, vans and trucks.

The biggest creditor is Hickam Federal Credit Union, listed by Kim with claims totaling $534,142.38 for car loans, a personal loan and credit card debt. One of those is a $50,000 claim showing Kim as the buyer of a 2004 Mercedes-Benz S500.

Kim names 23 people as debtors. The documents show these individuals have sales agreements for vehicles, and list a financial institution or car dealership as the creditor. These people presumably bought a vehicle from Kim and financed it through a bank, credit union or dealership.

Kim's attorney in the civil suits, Lee Miki, has failed to return repeated calls to the Star-Bulletin.

Yong alleges that Kim also bought new cars from dealerships here and on the mainland and sold them for a profit. Kim is not licensed by the state to sell new cars. He is licensed by the state as a dealer of used cars only.

Kim preyed primarily upon Korean immigrants, according to Yong and a man assisting a group of about 10 Korean immigrants with complaints against Kim.

Yong said he does not know whether Kim is a U.S. or Korean citizen, but said he speaks with a Korean accent.

The 10 immigrants claim losses of more than $200,000 in cash down payments and trade-ins. They allege that they have waited three to six months for cars ordered from Kim, according to the man assisting them, who asked not to be identified. When they went to Kim's 729B Emily St. office, they discovered it had been closed, he said.

In One documented case, Young Ha Kang and his wife filed a lawsuit last year against Kim, dba Dae Han Autos, and won a partial summary judgment against him.

In his complaint, Kang alleged he had contracted with Kim to buy a new 2003 Mercedes-Benz ML350 for $49,985.51. He traded in his 2000 Volkswagen Passat at an agreed-upon value of $15,000, and paid the balance with an auto loan from Central Pacific Bank.

Kang waited months but never received the car, so he went to a Mercedes-Benz dealer to inquire about its status. The dealer advised him that Kim was not an authorized Mercedes-Benz dealer and that the car bearing the VIN number Kim gave had been sold and delivered to other people on the mainland.

According to an Oct. 6 court document, Kim acknowledged that Kang had contracted to buy a "used" Mercedes-Benz from him and that he ordered the car from Beverly Hills Ltd.

But Kim argued that because of a change in options Kang requested, it was not until September that Beverly Hills Ltd. found another car, and Kim signed a sales contract for a new vehicle on Sept. 4, 2003. So the car whose VIN number was in the sales agreement Kang signed was sold to a third party, according to court documents Kim filed.

Kim said despite reassurances the car was on its way, Kang canceled the deal, so he never had the car shipped to Hawaii.

A Circuit Court judge awarded Kang $16,067.32 for the trade-in and payments he made, plus $4,016.83 in attorney's fees.

Yong said he had worked with Kim about seven years ago at Pflueger Honda, where they both were salesmen. Kim opened his dealership in 2002, and Pflueger sold him several cars.

Yong entered a partnership with Kim in February, loaning him $110,000 to purchase used vehicles from the mainland. Kim repaid $20,000 but has refused to repay the $90,000 balance, Yong said.

According to Yong's complaint, Kim bought vehicles with the money and sold them all, yet he failed to provide Yong with the one-half share of the profits and with an accounting of the sales' proceeds.

Yong demanded his money back, as provided for in the promissory note.

Kim had threatened several times to remove his liquid assets from Hawaii and wire them to South Korea, Yong said.

So Yong obtained a court order and had deputy sheriffs seize three of 11 cars that Kim advertised in the Pennysaver newspaper. The cars were at the South Street parking lot across from the Circuit Court parking garage.

On Sept. 26 and 28, deputy sheriffs seized two more vehicles belonging to Kim.

According to Yong's complaint, Kim relocated all but three cars from his storage facility. He also alleged Kim hid assets and transferred ownership of a condominium and a car to relatives.

Yong and the Korean group fear Kim may have hidden his assets in Korea, as he has allegedly threatened. Yong said he believes Kim has recently returned to Hawaii after a trip to Korea.

Kim lists no money in two checking accounts and $20 in another. He also lists older-model cars worth $21,825, and $6,115 in office equipment.

Bankruptcy trustee Mary Lou Woo, appointed Wednesday, said she will research and investigate the case.

Woo said it is difficult to pursue money out of state or out of country.

However, she added, "We have the means to pursue an investigation toward possible recovery."

The state Department of Commerce and Consumer Affairs' Regulated Industries Complaints Office urges anyone with a similar complaint to call 587-3222.