Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Mid-Year Report
  • ADAS
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
December 20, 2004 01:00 AM

BFS, Hempstead Tire settle fraud lawsuit

Vera Fedchenko
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Bridgestone/Firestone and Hempstead Tire Service Inc. have settled a lawsuit in which the tire maker had charged the West Hempstead, N.Y., dealership with wrongfully collecting profits and commissions on the sale of BFS tires.

    The two companies settled for undisclosed terms Nov. 17, and both declined to comment.

    BFS had filed suit Aug. 19 against Hempstead Tire in the Supreme Court of New York in Nassau County for approximately $4.5 million-the balance on Hempstead Tire's open account, plus interest, attorney's fees and commissions it claimed the dealership withheld.

    BFS also had alleged that Hempstead Tire had failed to pay federal excise taxes by reporting that tire sales to non-government customers were actually sales to local municipalities.

    The suit alleged Hempstead Tire had filed receipts of tire sales to municipal governments on Long Island, N.Y., but that BFS later discovered those sales were never made to the government entities.

    BFS charged that the dealership sold tires to non-governmental customers without the tire maker's knowledge. It terminated its authorized dealer agreement with Hempstead Tire on Aug. 2.

    Shortly after filing the suit, BFS exercised an option in its security agreement with Hempstead Tire to seize inventory, not yet paid for, from the dealership ``without demand or notice.''

    The suit named Hempstead Tire owners Mike and Ivy Chazen as defendants as well as all their affiliates and instrumentalities.

    Mr. Chazen declined to comment on the suit or the settlement, and his attorney did not return phone calls.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Conti rolls out new taglines for Conti, General brands
    2
    Discount Tire installs RoboTire at Arizona store
    3
    Yokohama's operating profits drop despite higher sales
    4
    Average executive salaries found in Tire Talent report
    5
    Icahn auto reports Q1, 1st half losses on lower sales
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Mid-Year Report
    • ADAS
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION