Unlicensed Car Seller Arrested, Charged with Grand Theft For Ripping Off Consumers with Disabilities

DCA investigation leads to 14 felony charges

September 24, 2010

Charles Raymond Kutz made a business of selling, buying and repairing customized vehicles for people with disabilities. Mr. George Brown was one of these people.

Mr. Brown has battled cerebral palsy his entire life. He needs modified vehicles to accommodate his disability. He bought them from Kutz and his company, Adaptive Driving Systems (ADS). In 2008, Mr. Brown bought a van from Kutz, who also agreed to sell Mr. Brown’s old van. Kutz sold the old van, but never paid Mr. Brown for it. Several months went by and Mr. Brown could no longer get in contact with Kutz. Finally, last year Mr. Brown tracked down Kutz, but he had closed up shop and filed for bankruptcy. To this day, Mr. Brown has never seen a dime of the money Kutz owes him.

Investigators from the County of Los Angeles Department of Consumer Affairs (DCA) found out that Mr. Brown was not alone. DCA received over a dozen similar complaints against Kutz and his company, which was not a licensed to sell vehicles. “Mr. Kutz caused great financial and emotional harm to consumers with disabilities and their families,” said Rigo Reyes, DCA’s acting director. “We will do all we can to hold him accountable for his actions.”

On Tuesday, Sept. 21, the Los Angeles County District Attorney’s office arrested Kutz, 57, at his home and charged him with 14 counts of grand theft. The charges originate from statements victims made to DCA investigators, including that Kutz failed to:

• Deliver vehicles they paid him for
• Give them titles for vehicles they bought from him
• Pay off the balance or give them credit for trade-in vehicles
• Pay them for vehicles they gave him to sell on consignment

Kutz operated ADS in Canoga Park before going out of business around February 2009. Kutz and his wife filed for Chapter 7 bankruptcy and were granted a discharge on April 26, 2009. This meant that victims could not recover on their claims against him.

DCA suggests that when dealing with private automotive dealers, consumers always:

• Check with the Department of Motor Vehicles to make sure they are licensed
• Don’t pay for the vehicle until it is delivered to them
• Closely monitor extra work being done on vehicle
• Immediately report problems to DMV and DCA

Kutz’s bail was originally set at $340,000. On Sept. 22, Kutz’s mother bailed him out after a judge reduced his bail to $150,000. He is due back in court on Oct. 14, 2010.