Category Archives: South

USED MOTOR VEHICLE DEALER AND FORMER STATE EMPLOYEE ARRESTED IN GEORGIA FOR ODOMETER TAMPERING SCHEME

NOTFEA

Two Atlanta, Georgia, residents were arrested this week by a team of federal and Georgia state agents, the Department of Justice announced. Rojen Burnett, 33, and Amber McLaughlin, 32, were charged in a 25-count indictment with securities fraud, making false odometer statements and conspiracy to commit these offenses.  Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles.  McLaughlin was a customer service specialist at the Motor Vehicle Department (MVD) of the Georgia Department of Revenue, the indictment alleges. According to the indictment, as early as February 2012 and through at least May 2013, the defendants devised a scheme to defraud buyers of used motor vehicles by rolling back the vehicles’ odometers and causing consumers to pay more for the vehicles than they would have paid if they had known the vehicles’ actual miles. As part of the scheme, the indictment charges that Burnett purchased high-mileage, used motor vehicles from auctions in Maryland and Virginia. Burnett then caused the odometers in these vehicles to be altered to reflect false, lower mileage, according to the charges. The indictment also alleges that Burnett caused the existing titles associated with these vehicles to be altered to reflect the false, lower mileages.  McLaughlin provided him with newly issued, clean Georgia titles reflecting the false, lower mileages, according to the charges. Using these new Georgia titles, Burnett subsequently sold the motor vehicles to other dealers through an auto auction, the indictment alleges. “Individuals who buy and sell used vehicles cannot alter odometers and the associated paperwork to increase their value,” said Principal Deputy Assistant Attorney General Benjamin J. Mizer, head of the Justice Department’s Civil Division. “Consumers who purchase used vehicles need accurate mileage information to assess the value and safety of a potential vehicle purchase.  We … Continue Reading

Feds: Chesapeake car dealership rolled back at least 76 odometers, secured doctored titles

NOTFEA

A Chesapeake used-car dealership rolled back odometers in at least 76 vehicles, some of them by more than 100,000 miles, federal prosecutors allege in court documents. But state and federal officials declined this week to identify the business in question, citing an ongoing investigation involving the Virginia Department of Motor Vehicles and the U.S. Department of Justice. They said the only charges filed so far in connection with the alleged conspiracy involve a former employee of the city of Norfolk who they believe helped cover up the scheme. A DMV spokeswoman confirmed the dealership is “no longer open.” She added that her department’s standard procedure is “to make efforts to notify possible victims of suspected odometer fraud.” William Childress, the executive director of the board tasked with regulating the state’s new- and used-car dealerships, said he had not heard about the case and couldn’t comment. But he added that 76 incidents of odometer fraud linked to one dealership would be a “huge deal.” Steven Bazemore, 33, of Virginia Beach is expected to plead guilty May 26 in U.S. District Court in Norfolk to one count of conspiracy to commit securities fraud. Carteia Basnight, Bazemore’s attorney, did not return calls or emails seeking comment. According to court documents, Bazemore helped the unidentified business obtain falsified vehicle titles while working at a DMV Select branch in Norfolk. The scheme stretched from about January 2010 through September 2013, court documents said. Lori Crouch, a Norfolk city spokeswoman, said Bazemore worked for the city from Sept. 28, 2007, through Sept. 20, 2013. She declined to say whether he was fired or he quit. While working at the DMV Select branch, Bazemore was supposed to help customers register their vehicles and obtain Virginia motor vehicle titles, among other things. Court documents said the dealership’s owner … Continue Reading

Feds: Chesapeake car dealership rolled back at least 76 odometers, secured doctored titles

NOTFEA

A Chesapeake used-car dealership rolled back odometers in at least 76 vehicles, some of them by more than 100,000 miles, federal prosecutors allege in court documents. But state and federal officials declined this week to identify the business in question, citing an ongoing investigation involving the Virginia Department of Motor Vehicles and the U.S. Department of Justice. They said the only charges filed so far in connection with the alleged conspiracy involve a former employee of the city of Norfolk who they believe helped cover up the scheme. A DMV spokeswoman confirmed the dealership is “no longer open.” She added that her department’s standard procedure is “to make efforts to notify possible victims of suspected odometer fraud.” William Childress, the executive director of the board tasked with regulating the state’s new- and used-car dealerships, said he had not heard about the case and couldn’t comment. But he added that 76 incidents of odometer fraud linked to one dealership would be a “huge deal.” Steven Bazemore, 33, of Virginia Beach is expected to plead guilty May 26 in U.S. District Court in Norfolk to one count of conspiracy to commit securities fraud. Carteia Basnight, Bazemore’s attorney, did not return calls or emails seeking comment. According to court documents, Bazemore helped the unidentified business obtain falsified vehicle titles while working at a DMV Select branch in Norfolk. The scheme stretched from about January 2010 through September 2013, court documents said. Lori Crouch, a Norfolk city spokeswoman, said Bazemore worked for the city from Sept. 28, 2007, through Sept. 20, 2013. She declined to say whether he was fired or he quit. While working at the DMV Select branch, Bazemore was supposed to help customers register their vehicles and obtain Virginia motor vehicle titles, among other things. Court documents said the dealership’s owner … Continue Reading

Hidden camera investigation uncovers used car odometer rollback

NOTFEA

HOUSTON – Texas is the second state in the nation for odometer fraud, according to data compiled by Carfax. It occurs when an odometer’s mileage is rolled back, or lowered, to make the vehicle appear to have fewer miles. “When you lower the mileage on a vehicle, you are artificially inflating the value of it and costing consumers thousands of dollars,” said Chris Basso, a spokesperson for Carfax. The vehicle history report website estimates that over 150,000 vehicles in Texas are suspected to have an odometer rollback. Chris Zimmerman and his wife are driving around in one of those vehicles. When Zimmerman and his wife had a third child, it was time for a minivan, so they went to Craigslist to shop for a reliable vehicle with low miles. n June, Zimmerman came across an ad from a man who claimed to be selling his wife’s van and only identified himself as Mike. He was selling a Honda Odyssey and advertising the vehicle had less than 80,000 miles. When Zimmerman agreed to meet the seller, he didn’t expect to end up in the parking lot of a gentleman’s club off the Gulf Freeway. Mike, as it turns out, was not a private seller. He actually worked for Texans Motors Inc. and sold cars out of the back lot of that club. Despite hesitation, Zimmerman purchased the van. But his wife didn’t like it, so they decided to resell it. That’s where the problems began. When Zimmerman took the van to a dealership to sell, they ran a Carfax and told him the van actually had 150,000 miles on it. “It was double what was on the odometer,” said Zimmerman. He drove it back to Texans Motors Inc. to try to trade it for another van that said showed 115,000 miles … Continue Reading

Arrest in Odometer Tampering Case in Rutherford County

NOTFEA

RUTHERFORDTON, N.C. — A Rutherford County man is facing charges for possible odometer tampering after a month-long investigation. Agents with the N.C. Division of Motor Vehicles’ License and Theft Bureau, along with the Rutherford County Sheriff’s Office, the Forest City Police and Spindale Police, arrested Mitchel Craig Padgett, 20, at his home in Forest City on Monday. Padgett was charged with six felony counts of Unlawful Change of Mileage, seven felony counts of Altering a Certificate of Title, eight felony counts of Common Law Forgery and seven felony counts of Aiding and Abetting Notary Fraud. He was taken to the Rutherford County Jail and held under $140,000 secured bond. License and Theft Inspector Aaron Ellenburg led the investigation. In addition, a search warrant was executed at Padgett’s residence and at AACE Automotive, a vehicle repair garage he owned and operated at 667 US 221-A in Forest City, by License and Theft Lt. James Walston and inspectors Aaron Carver and Charity Brown. License and Theft agents are continuing to investigate the possibility of additional victims.

Continue Reading

Three arrested in Sarasota for Craigslist car scam

NOTFEA

SARASOTA, Fla. — Three people are behind bars in Sarasota after being accused of manipulating car odometers to make the vehicles appear more valuable. Florida Attorney General Pam Bondi’s Office announced the arrest of Denis Kutsayev, Tamara Kutsayeva and Renat Kutsayev. They’re accused of advertising used cars on Craigslist and changing their odometers and other features to up their value before selling them to unsuspecting consumers. An investigation by FHP revealed that they removed “the word rebuilt from the title of salvaged vehicles, altering the mileage on the title or rolling back the odometer. On one occasion, one of the defendants allegedly changed the odometer mileage of a vehicle from 117,000 miles to 46,335 miles before selling it on Craigslist.” Someone changing an odometer can be a hard problem to catch. The state recommends looking at service records that show the vehicle’s mileage; check the physical condition of the carpet, break pedals and seats; look for scratches on the odometer; and, have a reputable mechanic to check out the vehicle. Mike Modha almost fell victim to a different odometer changing scam back in November. He wanted to buy his nephew a used car and turned to Craigslist. “We thought we really got a good deal,” he said. But, that was one ride he wish he never took. Originally, the car ran around over 200,000 miles and they had changed everything on the odometer. The sellers listed the 2010 Toyota Corolla on Craiglist with a mileage just over 30,000 miles. And, the car had previously been totaled. “They repaired that and put it in a condition as if you can’t even imagine,” Modha said. “They were selling it to me for $8,750. This incident happened back in November and the dealers were arrested after Modha became suspicious and alerted authorities. As for this week’s round up, the suspect faces charges of title fraud and odometer fraud. Denis Kutsayev and Tamara Kutsayeva also face charges for engaging … Continue Reading

Missouri Patrol Seeking Information In Consumer Fraud Investigation

NOTFEA

KANSAS CITY, Mo. – The Missouri State Highway Patrol have been investigating a series of consumer frauds related to the sale of vehicles by a KC couple. The couple has been known to purchase a vehicle, typically from Craigslist. The couple will then alter the mileage on the vehicle and re-sell it on Craigslist, posing as the owners of the vehicle. The investigation revealed approximately 48 vehicle purchases/sales within the past year; iis possible not all the transactions involve an odometer rollback. Investigators are still trying to determine the potential number of victims. The suspects do not use their names during transactions, and typically use disposable pay-as-you-go cell phones. The man is approximately 5’ 9”, medium build, and has an “East Coast” accent. If present, the woman typically stays in a green Nissan Quest minivan with their children while the transactions are conducted. If you or someone you know has purchased a vehicle from these individuals, please contact Missouri State Highway Patrol Corporal Nate Bradley, at 816-622-0800. Original Article: http://www.kmbz.com/Missouri-Patrol-Seeking-Information-In-Consumer-Fr/22147951

Continue Reading

Lutz man arrested for selling cars with altered odometers

NOTFEA

LUTZ, Fla. – One Lutz man thought he was getting a deal on a used car, but he nearly got taken for a ride.Deputies said a self-proclaimed car dealer was selling people vehicles with altered odometers. According to the sign out front, Carmona Service Corporation will do body and mechanic work on your car.  But on Wednesday, 64-year-old Pedro Carmona was arrested and charged with 11 counts, including tampering with the odometers on four vehicles. Just last week, Mahesh Modha said he saw an ad on Craigslist for a Toyota Corolla LE with 31,000 miles for less than $10,000. “We were ready to pay cash also, but it turned out we were scammed,” Modha said. Modha said Pedro Carbona and his nephew Gio met him to sell the car. Modha paid $1,000, got a receipt and promised to pay the rest. “They were claiming to be a dealer actually, you know Gio said my uncle is a dealer, so I said I normally trust dealer because dealer had a license,” Modha said. Carmona is charged with  four counts of selling vehicles with tampered odometers and selling cars without a license. Modha said a Carfax report helped him figure out the truth about that Corolla. “It came out 121,000 miles which was already reported in 2012 and now the original miles on the car was over 200,000 miles,” Modha said. Carmona is now out of jail on bond and the Director of Consumer Protection for Hillsborough County said, you need to vet your mechanics and body shop owners. “If they have a current license, they’ve been in business for a while and they have no complaints against them that’s one of the best ways consumers can look into whether or not they’re going to have a good experience with that business,” Eric Olsen, division director … Continue Reading

8 from St. Louis area sentenced for vehicle title fraud ring

NOTFEA

ST. LOUIS • Eight St. Louis-area men and women have been sentenced for their involvement in a ring that altered vehicle documents to obtain loans, prosecutors said Thursday. The ring altered documents to remove lienholders before selling the vehicles or to obtain new loans, prosecutors said. They also reduced the value of the vehicles on documents or changed the state of residence of owners to dodge taxes and license fees, they said. Federal, state and local investigators were able to document $311,000 in losses due to the scheme, but estimate that the true loss amount approached $1 million. The eight defendants received prison terms ranging from probation to more than 11 years in prison. The final defendant in the case, Justin Carter, 22, of St. Louis, was sentenced Wednesday to five years in prison. The leader, Randall Hinton, 33, of St. Louis was sentenced Aug. 11 to 11 years, four months in prison, prosecutors said. Original Article: http://www.stltoday.com/news/local/crime-and-courts/from-st-louis-area-sentenced-for-vehicle-title-fraud-ring/article_caf48294-7e55-5095-9ab7-c77e17635956.html 

Continue Reading

Couple accused of running a chop shop

NOTFEA

David Bernando Cruz Joselyn Cruz TAVARES — A two-county investigation has shut down an Astatula chop shop whose operators are accused of dealing in stolen cars from three states, authorities said. David Bernando Cruz, 30, and his wife, Joselyn Cruz, 31, were charged with operating a chop shop. David Cruz has been released from the Lake County Jail after posting a $50,000 bond. Joselyn Cruz was jailed in Osceola County on the same bail. Lake County detectives began investigating the two after receiving information from the Osceola County Sheriff’s Office regarding the couple having a large amount of vehicles to sell and looking for a place to get rid of them. The couple allegedly stole vehicles throughout Florida, as well as in Alabama and Georgia, with a tow truck they owned. They reportedly rolled back the mileage and covered up any damage to the vehicles. It also was alleged that David Cruz would get vehicles from owners who couldn’t make their car payments under an agreement that he would assume the payments. He then allegedly hid those vehicles from repossession companies until he could obtain fraudulent titles on the vehicles and resell them. Lake County sheriff’s detectives eventually learned of a warehouse at 14200 Corkwood Lane in Astatula,where the couple had allegedly been hiding vehicles. Detectives executed a search warrant on the property in Astatula and discovered 16 vehicles, two of which were confirmed stolen, and some with missing vehicle identification numbers. The owner of a car dealership in Osceola County allegedly agreed to allow the couple to use his lot for a portion of the proceeds. Lake sheriff’s Sgt. Fred Jones said Tuesday that an investigation recently wrapped up by the Osceola County Sheriff’s Office included evidence gathered during a search of the auto sales business. Following the search, … Continue Reading