It?s a tale laced with lies, sabotage, and a few dozen #10 envelopes. On July 24, Southfield, Michigan-based Star Lincoln Mercury mailed 65 letters to lease customers of Novi, Michigan?s Varsity Lincoln Mercury, saying ?"It has come to my attention that your Lincoln-Mercury Dealer has decided to close.?

As it turns out, the letter was completely without merit. Not only is the Novi, Michigan-based dealership not going out of business, it?s doing quite well. So well, in fact, that the Ford Motor Company issued a statement attributed to company marketing boss Jim Farley which said Varsity Lincoln-Mercury has outsold every other Lincoln-Mercury dealership in the nation from 1997 through 2007, with 36,796 retail sales in that time.

In the wake of the scandal, Star Lincoln Mercury has agreed to print a retraction letter and mail it to the same 65 recipients. Star owner Hoot McInerney, himself a well-known Detroit businessman, said ?someone? in the organization mailed out the letters and ?goofed up.? Varsity intends to take the case to court in any case.

The damage done to Star Lincoln Mercury will likely last longer, however. Enter a Google search for the dealership and stories of the scandal pop up in the third position.

+ Crain's Detroit: Star Lincoln-Mercury to mail retraction letter to Varsity customers