Category Archives: West

Man Pleads Guilty to Vehicle Odometer Rollback Scheme

NOTFEA

County of Los Angeles District Attorney Seal

A Studio City man pleaded guilty today for operating a computerized odometer rollback business for vehicles that were leased from dealerships in the San Fernando Valley and Glendale, the Los Angeles County District Attorney’s Office announced.

Serge Oganesian, 45, entered his plea to six felony counts: one count of conspiracy to commit grand theft and five counts of computer access and fraud.

Sentencing in case BA472209 is scheduled for April 21, 2020, in Department 50 of the Foltz Criminal Justice Center. The defendant is expected to receive a 16-month jail sentence and will be ordered to pay a $15,000 fine.

Oganesian had been running his odometer rollback business since April 2015 in North Hollywood, Glendale and Studio City at various times, according to Deputy District Attorney Leonard Torrealba of the Consumer Protection Division.

The defendant hacked the computers of 12 vehicles and rolled back the vehicle odometer readings. The altered mileage amounted to $76,394 in false vehicle appreciation, the prosecutor said.

Vehicle valuation is highly dependent on vehicle mileage. Consumers rely on the vehicle odometer reading in making their used car purchases, the prosecutor added.

The case was investigated by the California Department of Motor Vehicles, with assistance from the District Attorney’s Office’s Bureau of Investigation.

Original Article: http://da.co.la.ca.us/media/news/man-pleads-guilty-vehicle-odometer-rollback-scheme

Man Switching Odometers Gets Two Years in South Dakota Penitentiary

NOTFEA

A man who lived in Sioux Falls and sold vehicles at River Auto Sales, LLC has been sentenced to two years in the South Dakota Penitentiary.

Chad Michael Blair, 42, formerly of Sioux Falls and currently listed as a resident of Houston Texas, was sentenced November 28 to one count of deceptive trade practices and one count of odometer alteration. Blair was also ordered to pay $3,375 in restitution.

Attorney General Marty Jackley commented on the conviction and subsequent sentencing.

“Tampering with odometers in order to get more money for vehicles from innocent victims is wrong and illegal,” said Jackley. “We will continue to hold responsible individuals who take unfair advantage of consumers.”

According to a statement from the South Dakota Attorney General’s office, Blair managed River Auto Sales, swapping high mileage odometers with lower mileage odometers obtained from a used auto parts retailer. State law requires a notice to be posted with the vehicle of a changed odometer, which was not done.

This case was investigated by South Dakota Division of Revenue and the Attorney General’s Consumer Protection Division and prosecuted by the Attorney General’s Office

Original Article: http://ksoo.com/man-switching-odometers-gets-two-years-in-south-dakota-penitentiary/

Police make arrests in months-long odometer-tampering scheme

NOTFEA

The Philomath Police Department culminated a five-month investigation Wednesday morning with the arrests of three men in connection with alleged odometer tampering through an auto sales operation.

Cody Kin Marten, 21, of Philomath, faces four counts each for unlawful tampering with an odometer, theft by deception and conspiracy to commit theft — all felonies. Jeffrey Lynn Watters, 27, of Corvallis, and London Rae Fields, 22, of Corvallis, were cited for felony unlawful tampering with an odometer.

“We have seized over a hundred titles and sales documents from the suspects and in the coming weeks, we are going to put out on the Philomath website, vehicles and license plate numbers that we know were sold by these individuals,” Philomath Chief of Police Ken Rueben said. “We are hoping to have victims contact us and verify what their vehicle was and what the odometer reading was on those cars.”

Philomath police seized about 24 vehicles from JW Auto Sales at 3065 SE Third St., in South Corvallis as part of Wednesday’s operation. Watters registered JW Auto Sales with the state Nov. 4 and has been leasing space from B&R Auto Wrecking since December, according to B&R assistant manager Todd Boshart.

JW Auto Sales added Fields as a co-owner through an amended license with the state April 4. Watters and Fields are roommates at 5915 Philomath Blvd., in Corvallis.

“They’ve been buying parts from us for about two years, flipping cars,” said Boshart, who described the two partners as “super-nice guys” and said they had created no problems for B&R in the time they had leased space on the property.

Philomath police worked in partnership with the Corvallis Police Department on the case.

While serving the search warrant at Marten’s address at 1218 Monroe St., in Philomath, police stumbled upon a marijuana-growing operation.

“What we learned yesterday is that it appears — based on the interviews and our records — is that one of the suspects was selling cars on Craigslist and also taking marijuana in trade or partial trade for the cost of the vehicle,” Rueben said. “There was code language put in the ads to alert people that are in the marijuana field that if they saw this code language in the ad, that it would be possible to trade marijuana or partially trade marijuana for the sale of the vehicle.”

Marten does have a license to grow marijuana.

The investigation in the odometer-tampering operation dates back to Jan. 7, when a Corvallis woman filed a report with Philomath police over discoveries involving a Subaru Forester that she had purchased through a Philomath-based Craigslist ad.

“Shortly after she purchased the car, she took it to Oil Can Henry’s in Corvallis to have the oil changed and Oil Can Henry’s — as many of the local maintenance shops do — now use Carfax to track maintenance for these cars,” Rueben said.

Carfax offers a fee-based service to the public that supplies vehicle history reports, including odometer information.

“They advised her at that time that the odometer that she currently had on her car was about 150,000 miles less than the last time it was in their shop, or in an Oil Can Henry’s facility,” Rueben said. “She felt that something was wrong and came to our office to report it.”

Police caught a break through Carfax, which makes accounts available to law-enforcement agencies, and contacted the prior owner of the Subaru Forester, a former Corvallis resident who had moved to Salem.

“We contacted him and he told us that he sold this car to one of the individuals we arrested for $800 and it had a blown head gasket and was barely running,” Rueben said. “The advertisement on Craigslist said the car had 156,000 miles on it and when she got the car, that’s what it had. The Carfax report said the last time that car was in for maintenance … it had 229,000 miles on it.”

The suspects flipped the vehicle and sold it to the victim for $3,600 — a profit for them of $2,800 in less than a week.

“The electronic odometers of today’s cars, many of them take special tools to actually access the instrument cluster where the odometer is,” Rueben said.

The victim’s car was taken to a Corvallis garage and it was discovered that the entire odometer mechanism had been replaced.

The investigation progressed with a search warrant served on Craigslist to be able to access posted ads going back over a year. Many of those ads included photos of cars and in some of those, images of the license plates could be seen. Police compared mileage claims in the ad with odometer readings through Carfax.

“We found that eight of the cars that we looked at out of about 20 that the odometer was significantly different than what was on their ad, or what it should’ve been in reality,” Rueben said. “We knew we had a group of people that were doing this and victimizing people using Craigslist to sell these vehicles.”

The investigation also ventured into cellphone records and Facebook accounts and police conducted surveillance at numerous locations where cars were worked on and sold in Corvallis and Philomath. It all added up to the four search warrants served Wednesday — at the Watters and Fields residence, the Marten residence, JW Auto Sales and an auto garage workshop near the Corvallis airport.

Two of the suspects were cooperative with the investigation.

“We interviewed the three suspects and two of the suspects were cooperative and admitted that they had rolled back odometers on cars prior to opening their business for the purpose of raising money to open a legal business, which is JW Auto Sales,” Rueben said. “We don’t know how many victims we have yet.”

Police will now follow up by eventually publishing an online list of all the cars that have been sold through the suspects over the past year “in hopes that we can verify if they were defrauded or not.”

Rueben said it took about three hours to move the 24 or so vehicles from JW Auto Sales to its storage location near Philomath. The department saved on expenses by avoiding tow trucks and having city staff drive the vehicles to the lot, which is made available to local police at no cost. Also among the items seized were vehicle instrument panels with odometers intact.

Original Article: http://www.gazettetimes.com/news/local/police-make-arrests-in-months-long-odometer-tampering-scheme/article_1e8d3921-337b-548b-b1df-a97beb33bb32.html

DOL accuses auto dealer of violating odometer law

NOTFEA

The Department of Licensing is accusing an auto dealer in Lynnwood of breaking a Washington law meant to protect consumers from odometer fraud.

If you’re buying a used car, you want to know exactly how many miles it’s been driven, which is why Washington state has strict laws against odometer fraud.

The Department of Licensing is accusing a dealer in Lynnwood of breaking one of those laws.

About two years ago, Lauryn Bates bought a used 2003 Subaru from Car Craft Auto Sales.

“I went in at 19, limited income, no credit history, and they were the only people I knew would finance me,” Bates said of the company that advertises financing guarantees on its website.

Bates called KING 5 because she suspected Car Craft Auto had altered her odometer and not disclosed it at the time of purchase.

“I was naive and I fully believe they took advantage of that 100% thinking I wouldn’t ever figure it out,” Bates said.

Bates drove the Outback for two years and only discovered a problem when she tried to sell it.

A prospective and astute buyer pulled a vehicle history report, which revealed a huge discrepancy with her mileage.

Today her odometer reads 163,954, but that can’t be right because three years ago the car was recorded as having 181,289 during a vehicle service, according to that vehicle report.

The buyer backed out, leaving Bates distraught.

“I have a car that has nothing, zero value whatsoever. I can’t sell it to anybody,” Bates said.

We called the Department of Licensing which investigated.

The DOL determined Car Craft Auto had swapped out the original odometer for one with lower mileage.

KING 5 also obtained an eBay receipt for a used odometer with Car Craft owner Gus Trefault’s name on it. The DOL believes that odometer went into Bates’ car.

In a letter to the state, the dealership also admitted it swapped out the odometer and the “replacement was not disclosed to Lauryn.”

That’s against the law.

Washington requires a seller to notify a buyer whenever an odometer has been replaced.

Trefault refused an in-person interview, but over the phone he told KING 5 he thought he was exempt from odometer laws because of the car’s age. It was 10 years old.

The DOL said he’s incorrect.

Independent mechanic Dave Eames of Pittman Automotive said Bates’ mistake was not obtaining her own inspection complete with a vehicle history report before buying the Subaru.

You typically can get both for around $100, depending on the mechanic’s hourly rate.

“Unless it is coming from a friend or owner you know the history of, trust but verify,” Eames said.

Knowing what she knows now, Bates said that’s a small price to pay for protection.

“I want people to be aware so that this doesn’t happen to them,” Bates said.

Because this was Car Craft’s first known offense, the DOL said it gave the company a warning rather than filing charges.

Original Article: http://www.king5.com/story/news/local/2015/11/07/auto-dealer-accused-of-violating-odometer-law/75335886/ 

Bremerton cops nab 2 in odometer-rollback scam, 1 at large

NOTFEA

BREMERTON, Wash. — Three brothers are accused of ripping off dozens of car buyers in Bremerton by rolling back odometers to sell the vehicles at a higher price.

Bremerton Police arrested two of the brothers on Wednesday then served warrants at two Navy Yard City properties located in the 3700 block of Madrona Street and the 3700 block of C Street, where the vehicles were stored. During the search, detectives impounded at least three vehicles that were not registered to the properties.

“Unfortunately, most of (the victims) didn’t know they’d been taken advantage of until I contacted them,” said Bremerton Police Det. Martin Garland.

The organized crime investigation started in January 2014 after a victim found a repair invoice in a vehicle that was purchased from the suspects. The victim noticed the mileage didn’t look right, checked the car’s history on CarFax, and determined the mileage was incorrect.

Bremerton Police said the brothers purchased the cars on Craigslist then resold them at higher costs after rolling back the odometers, which would make it appear the cars didn’t have as many miles so the suspects could get more money.


“One of the big pieces to this puzzle was we were able to determine the CarFax account that our suspects were using and they, themselves, were running a CarFax on the vehicles,” said Det. Garland. “They would print that out, alter the mileage on the CarFax report, and then provide it to the victims as proof of the mileage.”

Detectives subpoenaed the records for the suspects’ CarFax account and learned the suspects had done more than 3,000 searches for vehicles.

Detectives said the men always made cash transactions and they did not register the titles of the cars to make it appear they were never in possession of the vehicles.

In some cases, the suspects rolled back the odometers 150,000 miles. On average, the brothers made about $1,200 per deal.

So far, detectives have confirmed the suspects sold 40 cars with false odometers but they believe the suspects actually sold more than 200. The investigation has required extensive research on each vehicle that involves contacting the new and previous owners, checking the vehicle history, and CarFax reports.

“One of the scary things in this case is the mileage and money can be replaced but the safety they’re taking from these victims – they provided invoices that said their brakes had been fixed when they hadn’t,” said Det. Garland.

Detective Garland said one of the suspects appeared to be such a good salesman he even posed for photographs with some of the victims after the purchases were complete. The suspects usually agreed to meet the buyers in the parking lot of Bremerton businesses so that’s why Bremerton Police has jurisdiction on the case.

“He knew everything about the car up and down. At least that’s what we thought,” said one victim who purchased a 2002 Subaru from the suspects after responding to a Craigslist ad.

The victim said her husband quickly became suspicious of the $5,000 purchase and looked up the car’s history on CarFax. That’s when they learned the car, which they thought had 92,000 miles when purchased, had a higher mileage. The couple contacted the former owner and learned the car actually had 230,000 miles when it was sold to the suspects.

The suspects are facing more than 100 felony counts that include leading organized crime, forgery, and illegal vehicle transfers.
By: Casey Edds

Ex-North Hills Car Salesman Gets Prison In Odometer Fraud Scheme

NOTFEA

CBS2 Investigative Reporter David Goldstein first confronted Shamai Salpeter (right) and uncovered the odometer fraud scheme in 2012. (CBS)

CBS2 Investigative Reporter David Goldstein first confronted Shamai Salpeter (right) and uncovered the odometer fraud scheme in 2012. (CBS)

LOS ANGELES (CBSLA.com) — A former San Fernando Valley car salesman was sentenced Monday to a year in federal prison for rolling back odometers for people who exceeded mileage limits on their leases.

Jeffrey Levy, 62, was also ordered to serve three years of supervised release upon getting out of prison and to pay restitution of about $115,800 to the owners of 21 cars with altered odometers.

U.S. District Judge George H. King ordered that $35,000 of the amount be paid immediately.

Levy was also prohibited from employment related to the purchase, sale, leasing, or financing of new or used motor vehicles during the period of supervised release and ordered him to undergo treatment for mental health issues and a gambling addiction.

Prosecutors say while working at Galpin Ford in North Hills, Levy referred customers and friends to co-defendant Shamai Salpeter, 65, over a period of three years in a scheme in which people paid up to $400 to avoid penalties for exceeding mileage limits on leases or to increase auto trade-in values.

Salpeter previously pleaded guilty and is expected to be sentenced April 13.

Both men pleaded to conspiracy to commit odometer tampering.

Salpeter was the subject of a 2012 hidden-camera investigation of odometer fraud by CBS2 investigative reporter David Goldstein.

Original Article: http://losangeles.cbslocal.com/2015/03/16/ex-north-hills-car-salesman-to-be-sentenced-in-odometer-fraud-scheme/ 

Woodland Hills man will go to jail for odometer tampering

NOTFEA

A man who was once a top salesman at a San Fernando Valley car dealership was sentenced Monday to a year in federal prison for conspiring to roll back vehicle odometers in a scheme in which people paid up to $400 to avoid penalties for exceeding mileage limits on leases or to increase auto trade-in values.

Jeffrey Levy, a former salesman at Galpin Ford in North Hills, was also ordered to serve three years of supervised release upon getting out of prison and to pay restitution of about $115,800 to the owners of 21 cars with altered odometers.

U.S. District Judge George H. King ordered that $35,000 of the amount be paid immediately.

The judge also prohibited the 62-year-old Woodland Hills resident from employment related to the purchase, sale, leasing, or financing of new or used motor vehicles during the period of supervised release and ordered him to undergo treatment for mental health issues and a gambling addiction.

Levy “defrauded his dealership and multiple customers,” undermining “the trust that people have” when they purchase or lease a car, King said.

The defendant told the court prior to sentencing that he would “probably deserve” whatever penalty came his way, adding that there were “so many things I could do for the federal government rather than be incarcerated.”

King ordered Levy to surrender to federal authorities on April 20 to begin his sentence.

A co-defendant, Shamai Salpeter, 65, previously pleaded guilty to conspiracy to commit odometer tampering and is expected to be sentenced April 13.

While working at the dealership, Levy referred customers, including friends, to Salpeter, who charged $100 to $400 to roll back the odometer readings, which he did using electronic tools in the driveway of his Woodland Hills home, federal prosecutors said.

Levy then accepted the vehicles for lease returns or trade-ins without alerting the dealership, “thus defrauding future owners of the vehicles,” according to court papers.

Defense attorney Robert Shapiro told the court that his client, once “the best salesman at Galpin Ford,” got into trouble out of a desire to “make himself feel a little more important than he actually was.”

Galpin Ford cooperated in the investigation, prosecutors said.

“Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles,” said Acting Associate Attorney General Stuart F. Delery for the Justice Department’s civil division.

Salpeter was the subject of a 2012 hidden-camera investigation of odometer fraud by CBS2.

Original Article: http://mynewsla.com/crime/2015/03/16/woodland-hills-man-faces-sentencing-for-odometer-tampering/