NORFOLK, Va. — The commander for the Navy Region Mid-Atlantic put a Norfolk auto dealership on the "off-limits" list for service members, citing reports of unethical business practices and unauthorized solicitation at Naval Station Norfolk.
Officials with the Navy said Icon Motor Sports, located on East Indian River Road, "unfairly targets junior service members and takes advantage of their limited financial understanding or ability to walk away from a negotiation."
In a news release, the Navy listed out the practices that the business is accused of partaking in:
- Misrepresenting itself as a “free” driver safety course, rather than a dealership.
- Coercing service members with no driver’s license to buy a car.
- Refusing to refund thousands of dollars in deposits after selling defective cars.
- Making false promises to resale a used car.
- Causing service members to end up paying on two used cars.
- The appearance of bird-dogging — when someone refers a prospective customer to a particular dealership or salesperson for a given fee or compensation — onboard the naval base.
"One of the cases for example was $5,000 placed as a deposit for a defective car," said LCDR Victor Marquez, Deputy JAG for Navy Region Mid-Atlantic.
On Aug. 18, the dealership's owner was indefinitely barred from Naval Station Norfolk and all Navy Region Mid-Atlantic installations after the Armed Forces Disciplinary Control Board (AFDCB) found out about their practices.
"I want to make it clear that this is a last resort," Marquez told 13News Now.
He said they always try to give businesses every opportunity to work with them and make things right.
"We never heard back from the business owner," he said, regarding Icon Motor Sports.
What is the Navy's 'off-limits' list?
The "off-limits list" is used to identify businesses in southeastern Virginia and northeastern North Carolina that are prohibited to military personnel.
13News Now went to Icon Motor Sports to try to speak to the owner, but the property was locked and the phone number was disconnected.
Marquez said this list helps ensure their sailors and personnel are protected against business that are trying to take advantage of them, especially younger members.
"It immediately impacts their financial welfare and that impacts their credit score, which then impacts their security clearance. So, ultimately what we’re doing here is protecting the sailors, so we can protect the mission," he said.
Financial literacy more important than ever
Financial literacy is something TCC Professor Emeritus of Business Administration Peter Shaw said is so important for young people to have to avoid getting into a bind.
"Financial literacy is your lifesaver to keep you from getting into a financial debacle. I mean real financial disaster," said Shaw.
He said to keep yourself from getting taken advantage of, you should create a budget separating your wants from your needs and shop around to find the best deal. Don't just go with the first option offered.
"Financial literacy is more important than ever," he said.
Marquez also said it’s important for sailors to come forward to the Armed Forces Disciplinary Control Board, if they believe a business is taking advantage of them.
"If it seems wrong, it’s probably something you want to do a little more research on," he said.
How to get off the Navy's 'off-limits' list
The businesses will stay off-limits until the next scheduled meeting of the AFDCB, when they will reconsider the status of each business on the list. Other businesses currently on the list are:
- 7 City’s Custom & Design, 1062 37th St., Norfolk
- 7 City’s Custom & Design, 117 E. Princess Anne Rd., Norfolk
- Autoworks, 6100 Tidewater Drive, Norfolk
- D Motors, 881 E. Little Creek Rd., Norfolk
- Best Price Auto Sales AKA US Auto Excellence, 3336 Holland Rd, Virginia Beach
- Mellow Smoke Tobacco Shop, 201 E. Berkely Ave., Ste. C, Norfolk
- Outer Edge Gifts, 760-B J. Clyde Morris Blvd., Newport News
- Prime Auto AKA Skyline Auto, 4114 E. Indian River Rd, Chesapeake
- The Vault, 389 W. 21st St., Norfolk
- The Vault, 15435-B Warwick Blvd., Newport News
- The Vault, 731 J. Clyde Morris Blvd., Newport News
- TKYU Bar, 1910 Atlantic Ave, Virginia Beach
Marquez said businesses are given the opportunity to notify the AFDCB that corrective actions have been taken.
"We want to work with the business and the community to get them removed off the list," he said. "We want to see problems resolved. For example, not soliciting on the base, assurances of that. Maybe reviewing the contracts and refunding money if there was money that was placed as a deposit."