(KSLA) - While Elio Motors Inc. still is on the hook for operating in Louisiana without proper licensing, a state court Monday severely reduced a punitive fine that threatened to put the company out of business.
Elio Motors was fined $545,000 in July for operating for more than 1,530 days as a manufacturer/dealer of recreational products without a license.
The company quickly appealed the decision by the Louisiana Motor Vehicle Commission.
Almost a year later, in a two-page judgment, Jefferson District Court upheld the LMVC ruling but cut Elio's total fine to $76,500.
Specifically, the court reduced the punitive measures against Elio Motors to $38,250 for not have a manufacturing license and an additional $38,500 for operating without a dealer license.
The court also ordered Elio Motors to set up a trust account and deposit all amounts the company collected as refundable reservation payments made by customers for its vehicles.
If Elio Motors fails to do so within 60 days, the company faces another fine of $1,000 per day for each day those monies are not deposited.
In an email sent to KSLA News 12, Joel Sheltrown, the company's VP of Governmental Affairs, said: "We strongly disagree with the decision and will appeal."