Category Archives: South

Eye on Scams: odometer fraud

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Almost everyone has shopped for a used car and buying a used vehicle is always a big deal for most consumers. Savvy buyers spend days or weeks searching for the right vehicle at the right price to fit their needs. When shopping for a used vehicle and during the buying process, a major consideration is the mileage on the pre-owned vehicle. Better Business Bureau Serving Acadiana offers advice to help consumers ensure they are not taken by odometer fraud. BBB alerts consumers that one in 10 American vehicles has a tampered or “rolled back” odometer, according to the Consumer Federation of America. According to Car Fax, a BBB Accredited Business, odometer fraud is one of the oldest automotive scams and the introduction of digital odometers has done nothing to halt it. BBB offers the following tips to help consumers detect odometer fraud when purchasing a used vehicle: Always check with BBB first. Compare the mileage Inspect the vehicle Hire an expert to inspect If you realize that you have bought a car with a rolled back odometer, report it to the Louisiana Office of the Attorney General at: http://www.ag.state.la.us/Article.aspx?articleID=37&catID=0 . Original Article: http://klfy.com/2015/05/11/eye-on-scams-used-cars/

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Chamblee car dealer arrested, accused of changing odometers

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1 of 4 Chamblee police took the owner of one car dealership into custody late Thursday afternoon. They say people bought cars from the man seeing a certain mileage on the odometer only to learn too late that mileage was way off. Chamblee police went to the Capitol Auto and Trucks dealership late Thursday afternoon to arrest the company’s CEO Daniel Bedolla Garcia for altering the odometers of cars sold at the dealer. Channel 2’s Amy Napier Viteri talked with one victim, Luis Ortiz Alvarado by phone who said he bought a Toyota Tundra from the dealer in August. He says the truck’s odometer read about 98,000 miles. But he soon noticed transmission problems. Investigators learned when the dealer bought the truck the actual odometer reading was 227,000 miles. “I have never seen an odometer reading being altered that bad. —  130,000 miles, that’s outrageous,” said Capt. Ernesto Ford with the Chamblee Police Department. A second man also went to Chamblee police saying he bought a Dodge Charger with 110,000 miles, according to the odometer and paperwork from the dealer. A Carfax report showed the car really had closer to 180,000 miles on it. Viteri went to the dealership Thursday night.  A woman inside told her they don’t want to speak about the accusations yet. Alvarado told Viteri he’s angry. He’s also out $9,000 with no car to show for it. “It’s very difficult because, you know, we work hard to get the money and it’s not fair for us that they do that to us,” Alvarado said,. Police believe the owner of the dealer took advantage of clients possibly assuming they wouldn’t report the issues or even realize it was illegal. Investigators with Chamblee police say they want any other victims to contact them.

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Thieves copying VIN from cars to re-use on stolen cars

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MyFoxAL.com – FOX6 WBRC Birmingham, AL ATLANTA (CBS46) – Metro Atlanta police are keeping an eye out for a rising trend among car thieves called cloning. David Renaud, with the National Insurance Crime Bureau, said the problem started surfacing about five years ago. “They’re stealing a car, and then they will clone the VIN. In other words… remanufacture the dash VIN, the labels on the car and everything,” Renaud said. The VIN, or vehicle identification number, is basically a fingerprint for your car. Renaud said that thieves can copy your VIN, and if they had a stolen car that was a similar make and model to yours, they could then use your VIN to clone the stolen car. Renaud said consumers should always beware, especially when purchasing a vehicle from an individual or online. “I don’t put anything past the bad guys,” Renaud said. “I recommend a Carfax report, especially if you’re going to buy the vehicle.” Renaud said many people become victims when they leave their vehicle parked in public places. Nowadays, the tricks can go unnoticed. “Usually your inexperienced officers do over look it, but your more experienced officers are looking for it,” he said. Renaud said Hondas are the most cloned vehicles. Copyright 2015 WGCL-TV (Meredith Corporation). All rights reserved. Original Article: http://www.myfoxal.com/story/27957283/your-car-could-have-more-than-one-identity

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Former Car Dealer Gets Shock Incarceration for Altering Odometers

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SPRINGFIELD, Mo. – A Springfield car dealer was sentenced Wednesday for rolling back the mileage on cars he sold. Ashley Bolton, who owned Excel Auto Group, must serve 30 days in shock-incarceration at the Greene County Jail, along with five years of supervised probation. This shock-incarceration comes as part of a suspended sentence of four years in the Missouri Department of Corrections. If Bolton does not finish the shock-incarceration program, he will be moved to the Missouri Department of Corrections to serve the four-year prison sentence. Bolton is also banned form working as or for a licensed automobile dealer and must provide restitution to consumers. The amount of restitution will be decided during a hearing on March 10. In 2013, Attorney General Chris Koster charged Bolton with two felony counts of unlawful merchandising practices. He pleaded guilty in September 2014. An investigation by Koster’s office and other organizations revealed Bolton misrepresented the actual mileage of vehicles being offered for sale by Excel Auto Group in 2011 and 2012. According to Koster, in one case, Bolton bought a car with more than 180,000 miles then sold it representing it had only 99,000 miles. In another, Bolton bought a car with nearly 220,000 miles then sold it less than a month later with an odometer reading of 119,000 miles. Consumers who suspect odometer fraud should call the Missouri Attorney General’s Consumer Protection Hotline at 800-392-8222 or file a complaint on the website. Orginial Artice: http://www.ozarksfirst.com/story/d/story/former-car-dealer-gets-shock-incarceration/36986/LzW6CM8hlUKNh_Vwu9d_4Q

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Odometer Fraud Case May Lead to Stiffer Penalties for Some Offenders

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An NBC 5 Consumer Investigation on odometer fraud prompts one division of the Texas Department of Motor Vehicles to recommend consumer-friendly changes to state law governing salvage dealers. These changes would protect consumers by giving the state tougher tools of enforcement against would-be violators. This potential change stems from a case against a DFW-area salvage dealer which wound up in small claims court then in the hands of the DMV. It started last year when Kristin and Ferron Young turned to Craig’s List when they needed a car on a tight budget. “We needed something that we felt like would be good for the family,” Kristin Young, mother of a kindergartener and a newborn, said. They found an ad for a 2000 Honda Accord, which described the car as very clean with 101,000 miles.  After seeing the car, they bought it for $3,200. “We ended up choosing the one that we bought because it had lower mileage,” said Young. The seller, salvage dealer Michael Eke, also had assurances. He said the car had been cared for and had only been in a little crash. But on the drive home they said they noticed problems immediately. The next day, the Youngs bought a CARFAX report, which revealed at the car’s last state inspection it had 160,000 miles. Odometer fraud costs consumer more than $1 billion a year, according to the National Highway Traffic Safety Administration.  But it can be difficult to prove, especially in older vehicles. That didn’t stop the Youngs from finding the truth. They ultimately discovered the car had been totaled and sold to salvage. The insurer gave them a picture of the odometer at the time of the wreck. It read 167,000 miles. Records show shortly after that, Eke bought the car, fixed it up and sold it … Continue Reading

Thirteen Area People Indicted On Fraud Charges Involving Motor Vehicle Titles

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FOR IMMEDIATE RELEASE November 17, 2014 St. Louis, MO – RANDALL HINTON was indicted in August on multiple fraud charges involving his scheme to alter and counterfeit documents in order to obtain state issued motor vehicle titles for himself and others.  Last week, twelve additional individuals were indicted in two separate indictments for their part in the use of the altered and counterfeited documents to obtain motor vehicle titles and motor vehicle title loans. According to the indictments, the schemes involving the defendants resulted in financial losses to the State of Missouri, financial institutions, title loan companies and individuals.  As the documents were often altered to decrease the value of the vehicles or to change the state of residence of the vehicle owners to addresses in Illinois, the owners of the vehicles were able to evade paying the appropriate taxes and license fees to the Department of Revenue for the State of Missouri.  When Hinton removed the names of financial institutions which had financed the purchases of the vehicles from legitimate titles, Hinton, Arronda Williams and others were able to sell the vehicles to innocent purchasers who were then unable to register the vehicles due to existing liens.  The final aspect of the scheme enabled individuals to use the altered documents to obtain motor vehicle title loans from companies located throughout the United States.  As a result of existing liens or the fact that the value of the vehicles was less than the defendants represented, the title loan companies experienced large financial losses. In a superseding indictment filed last week, Hinton, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of conspiracy to defraud, three felony counts of mail fraud, three felony counts of interstate transportation of falsely made securities, two felony counts of aggravated identity theft … Continue Reading

(Raleigh) Man accused of rolling back car odometers

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A Raleigh man is accused of rolling back odometers on 20 cars and selling 15 of them. Flavio Oliveira, 39, faced a judge for the first time Wednesday afternoon on those charges and one more – not having a car dealer’s license. Neighbors of the address listed for Oliveira say he and his family moved out recently, but when they lived there cars were often lined up on the street. State Department of Motor Vehicles investigators lodged the charges against the Brazilian man who is now under an immigration detainer. It appears most of the cars were sold to individuals, but at least one ended up in an auction according to Gary Essick, who is a used Honda dealer in Thomasville, North Carolina. Essick tells ABC11 that he bought the car at auction from a well-respected new car dealer. He sold the car and was shocked when DMV investigators showed up on his doorstep weeks later asking about it. “It is a big mess because we, you know, after we sold the car you’ve got to think back if you were, if you were sold a car and four to six months down the road you were told that you had to return it immediately for a possible fraudulent odometer statement, you know, it’s going to upset the customer,” said Essick. DMV officials say Oliveira was doing business as Vista Auto Brokers on Kirkland Road in Raleigh. They ask that anyone who bought a car from him and thinks their odometer may have been rolled back to contact them. Original article: http://abc11.com/automotive/man-accused-of-rolling-back-car-odometers/303056/

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Lebanon Car Dealer Indicted For Fraudulent Titles, Falsified Mileage On Dozens Of Vehicles

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Nick Humphrey FOR IMMEDIATE RELEASE September 5, 2014 SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., automobile dealer has been indicted by a federal grand jury for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles. Kenneth W. Smith, 60, of Lebanon, was charged in a seven-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Aug. 26, 2014. That indictment has been unsealed and made public upon Smith’s arrest and initial court appearance. Smith operates Cars Unlimited in Lebanon. According to today’s indictment, Smith obtained fraudulent replacement titles for dozens of vehicles that were sold by Cars Unlimited between February 2010 and Nov. 7, 2011. Smith (operating through Cars Unlimited) allegedly applied for and received 54 replacement titles from the state of Missouri, each of which underreported the vehicle’s actual mileage between 95,000 and 209,000 miles. Smith allegedly resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for an aggregate total of approximately $346,450. Beginning in February 2010, when Smith purchased vehicles (through Cars Unlimited) at auto auctions, the vehicle titles he received showed each vehicle’s actual mileage. After purchasing a vehicle, Smith allegedly submitted an “Application for Missouri Title and License” seeking a replacement title for the vehicle. Although he sought a replacement title, the indictment says, he in fact possessed the original title for the vehicle. In each of those instances, Smith allegedly forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited. The federal indictment charges Smith with seven counts of mail … Continue Reading

Patrick Wayne Davis booked in Knox County on odometer fraud and identity theft charges

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CHATTANOOGA, TN — Following an investigation by the Tennessee Highway Patrol’s Criminal Investigation Division (CID) Patrick Wayne Davis was arrested for odometer fraud, identity theft, and felony theft on Tuesday, March 11 in Knoxville. Davis allegedly altered the odometer of a 2004 Honda Accord over 120,000 miles. He then fraudulently advertised the vehicle on “Craigslist “as a low mileage vehicle and subsequently sold it at a much higher price. This case stemmed from a complaint taken by the Bradley County Sheriff’s Office in Cleveland, Tenn. Bradley County then requested the assistance of the Tennessee Highway Patrol. THP Sergeant Thomas Clower, working with the Bradley County Sheriff’s Office, was able to identify Davis as a suspect in their initial investigation. They discovered that Davis illegally acted as the original owner of the Honda by taking the name of a man from Michigan. Agents with the Highway Patrol’s CID also located physical evidence in the Honda Accord. On Thursday, March 13, Sergeant Clower and THP Interdiction Plus Sergeant Greg Roberts located Mr. Davis in Knoxville. Davis was arrested on odometer fraud, theft between $1,000 to $10,000 and identity theft. He was booked in the Knox County Jail. A court date will be set for the Knox County Criminal Court. The Tennessee Department of Safety and Homeland Security’s (www.TN.Gov/safety) mission is to ensure that our state is a safe, secure place in which to live, work and travel; enforce the law with integrity; and provide customer-focused services professionally and efficiently. Original Article: http://www.knoxvilledailysun.com/news/2014/march/patrick-wayne-davis-arrested.html 

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Woman says Milton Motor wasn’t honest about vehicle’s condition

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CHARLESTON – Milton Motor Used Auto Sales LLC is being sued after a woman claims it was not honest with her about the condition of a vehicle she purchased. On May 2, 2012, Patricia Davis entered into a motor vehicle purchase contract with the defendant for the purchase of a 2001 Ford Explorer, according to a complaint filed June 21 in Kanawha Circuit Court. Davis claims she specifically asked the defendant about the quality, durability and value of the vehicle and was assured the vehicle was a good, dependable car. The defendant represented the vehicle had no history or prior problems or damage when in fact, the vehicle had been previously extensively damaged, including apparent damage resulting from submersion in flood waters or other waters and the dealer had actual knowledge of the damage or should have discovered the damage upon reasonable inspection, according to the suit. Davis claims the defendant failed and/or omitted to inform her the mileage indicated on the vehicle’s odometer was inaccurate and failed and/or omitted to delivery any written odometer statement, as required by law. The defendant was negligent and its conduct constituted general unfair or deceptive acts or practices, in violation of West Virginia code, according to the suit. Davis is seeking compensatory and punitive damages with pre- and post-judgment interest. She is being represented by Cameron S. McKinney and David L. Grubb of the Grubb Law Group. The case has been assigned to Circuit Judge Charles E. King. Kanawha Circuit Court case number: 13-C-1169 Original Article: http://wvrecord.com/news/261179-woman-says-milton-motor-wasnt-honest-about-vehicles-condition

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