Judge Upholds Revocation of Car Dealer’s License

The state’s decision to revoke Brett Mitchell Chevrolet’s license has been upheld by an administrative law judge, ending a five-month battle over the license for the dealership in the Compton Auto Plaza.

In December, the state temporarily closed the dealership for tax and sales irregularities and later revoked its license, charging that Mitchell defrauded a Long Beach finance company. State officials said Mitchell received money from the company, Fidelity Financial, for titles for new cars and then failed to transfer the titles.

Mitchell appealed the action by the Department of Motor Vehicles but, after a series of hearings that stretched over three months, a judge ruled last week in favor of the state.

The city, according to Ken Wibecan, special assistant to City Manager James Goins, has begun foreclosure proceedings against Mitchell for money owed the city. He owes $115,887 on a $175,000 loan he received in 1987 and $12,000 in back rent for the building that the city used to own.

The city also is taking action, Wibecan said, to take back title to the dealership’s building and land in the auto plaza. Shortly before the state closed the dealership, the City Council voted to sell Mitchell the land and the building for $2.5 million that he was to pay in monthly mortgage installments.