Gray Market

A "gray market" auto dealer from Sherman Oaks has been arrested on perjury and grand theft charges in connection with the sale of Mercedes-Benz cars that the Department of Motor Vehicles alleges were illegally registered, the DMV reported Friday.

Regarding "Gray Market Imports Not All Black or White" (For What It's Worth, Oct. 28), my bureau has looked into the gray market situation in this area. We have seen gray market products hitting our area in an increasing manner. Recently we found a large number of gray market items in one store. The trick the merchant was--and is--using to reduce the chances of a consumer ascertaining before purchasing the product that the product is from the gray market is as follows: first, the merchant removes the serial number from the box in which the product is shipped, and second, the merchant does not allow the customer to view the product before purchasing.

There are still people, of course, who don't know what gray market goods are. Products for senior citizens, guessed one woman. Counterfeits but not black market, guessed another. They may never know--unless their new Sony or new Seiko stops working while still under warranty and an authorized service center rejects it, saying flatly: "It's not ours." Well, it is and it isn't.

New York stores selling brand-name products not intended for sale in the United States will be required, starting next week, to warn consumers when manufacturers' warranties are invalid. The "gray market" disclosure law is the first requirement of its kind in the nation, state Atty. Gen. Robert Abrams said.

Nearly 10% of the Americans who buy new Porsche sports cars get them from so-called gray market importers, and the company said Monday that it would fight back with aggressive marketing techniques. John Cook, president of Porsche's U.S. sales subsidiary, also said the company eventually will make all of its European models available to U.S. buyers, will offer extended warranties and will hold down prices for the second consecutive year.

The Senate on Monday approved and sent to Gov. George Deukmejian major legislation to curb bargain sales of prestige European wines and champagnes brought into California through a flourishing "gray market." The Senate voted 22 to 11 to concur in amendments added in the Assembly as Sen. Ralph C. Dills (D-Gardena), the measure's author, fought off charges that the bill would create a legal monopoly by granting a few authorized dealers the exclusive rights to bring imported wine into the state.

A Newport Beach entrepreneur, who has been called the nation's largest importer of so-called "gray market" automobiles, has pleaded guilty to charges that he submitted phony smog-test results to the Environmental Protection Agency, federal prosecutors in Los Angeles said Friday. Albert Mardikian, 39, abruptly decided Thursday to plead guilty to one count of mail fraud and nine counts of submitting false documents to the EPA, according to Michael Fayad, a Justice Department attorney.

Turning aside protests from the attorney general, consumer groups and large retailers, a key Assembly committee on Tuesday approved legislation to curb a flourishing "gray market" that has brought fine European wines into California at bargain-basement prices.

A Santa Ana entrepreneur--embroiled in legal battles with federal and state authorities over the smog testing of European-version luxury cars he imported--was indicted Wednesday on 35 counts alleging that he made false statements about tests done on the so-called "gray market" autos. Named in the indictment, returned in Los Angeles federal court, was Albert Mardikian, 39, owner of Trend Import Sales and Albert Mardikian Engineering, both in Santa Ana, said U.S. Atty. Robert C. Bonner.