Cash for clunkers dealers investigated

WASHINGTON (KABC) -- The federal government announced Monday it was investigating at least 20 car dealerships that may have violated the rules of last year's popular "cash for clunkers" program.

According to a report in "USA Today," government auditors said up to $94 million in claimed rebates may have been ineligible because they lacked the proper documentation required by the government-subsidized program.

Investigators discovered that some of the trade-ins that were meant to be destroyed as part of the "cash for clunkers" program were actually shipped overseas.

The National Highway Traffic Safety Administration said it found no evidence of widespread dealer fraud.

The "cash for clunkers" program allowed more than 678,000 new car buyers to get rebates up to $4,500 for trading in older, less fuel-efficient models.

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