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San Jose trio sentenced in odometer rollback scheme

NOTFEA

SAN FRANCISCO – Three San Jose men have been sentenced to prison terms for their roles in a conspiracy to buy high-mileage vehicles, roll back their odometers to make them appear newer and sell them at “significant profits,” according to the U.S. Attorney’s Office.

GavelU.S. District Court Judge Susan Illston on Friday sentenced 32-year-old Seymur Khalilov to two years in prison and 32-year-old Orkhan Aliyev and 31-year-old Ramil Heydarov to 20 months in prison each, the agency said in a news release Friday.

In October, the defendants pleaded guilty to one count each of conspiracy to commit wire fraud.

According to their plea agreements, the defendants admitted to fraudulently selling at least 78 vehicles with altered odometers for a total of $550,000, prosecutors said.

The scheme spanned from at least October 2017 to December 2020, prosecutors said. In one case, Khalilov rolled back the odometer of a vehicle from 35,000 miles to 35 miles, according to a sentencing memorandum filed by the U.S. Attorney’s Office.

The defendants also admitted they advertised the vehicles for sale on Craigslist and used doctored driver’s licenses to facilitate the sales, prosecutors said. Aliyev, for example, had multiple licenses with the same photograph but different people’s names.

In addition to prison terms, Illston ordered Heydarov and Aliyev to forfeit $379,325 and $196,578, respectively. A date to determine Khalilov’s restitution has not been scheduled.

Victims of the scheme will have one year from the date of judgment to seek restitution.

The National Highway Traffic Safety Administration, or NHTSA, estimates that odometer fraud in the United States results in consumer loses of more than $1 billion annually. Steps consumers can take to protect themselves include purchasing a vehicle report and comparing the mileage numbers, ensuring the seller’s information matches the information on the title, and not using cash to purchase a vehicle.

Anyone with information related to odometer tampering can contact the NHTSA’s fraud hotline at 800-424-9393 or 202-366-4761.

 

View Original Story here

Posted in News Articles, NOTFEA news, Odometer Fraud Statistics, Uncategorized, United States, West

Two Mississippi Men Plead Guilty in Odometer Fraud Scheme

NOTFEA

US Dept of Justice Logo

Two Long Beach, Mississippi, men pleaded guilty today for their roles in a long-running odometer tampering scheme, the Department of Justice announced.

Oscar M. Baine, 41, pleaded guilty to one count of conspiracy to alter odometers and one count of odometer tampering. Jeffrey Lyn Savarese II, 35, pleaded guilty to one count of conspiracy to alter odometers. Both defendants appeared in federal court in Gulfport before U.S. District Judge Louis Guirola Jr. The court set sentencing hearings for both defendants for Oct. 17.

As part of his plea agreement, Baine admitted that he purchased high-mileage vehicles from wholesale automobile auctions, dealerships, and individuals, and arranged to alter the vehicles’ odometers to reflect false, lower-mileage readings. Baine admitted that he paid Savarese and others to change or alter odometers at his used car lot in Gulfport. Baine then sold the rolled-back vehicles to unsuspecting consumers for inflated prices. Savarese admitted that he began altering odometers for Mississippi and Louisiana used-car dealers in 2011 and reset the odometers on at least 200 used vehicles for Baine.

“The Department of Justice is committed to prosecuting auto dealers who defraud consumers by selling vehicles with unlawfully altered odometers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Consumers rely on mileage information to assess the value and safety of a vehicle, and that information must be accurate.”

“These criminals put the public at risk by rolling back odometers and defrauding hundreds of people out of one of their biggest investments. I commend the investigators and prosecutors for bringing these criminals to justice and for protecting the public from further fraudulent acts by these two. We will remain vigilant as to these types of crimes and continue working to make our roads and communities safer for everyone,” said Mike Hurst, U.S. Attorney for the Southern District of Mississippi.

In pleading guilty, Baine admitted that he and a co-conspirator caused at least 387 vehicles to be rolled back between 2011 and 2014, with resulting consumer losses of more than $600,000. Baine also admitted that, at times, the altered odometers and fraudulent titles included false mileages that were more than 100,000 miles less than the vehicles’ actual mileages.

Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Andrea Jones of the U.S. Attorney’s Office for the Southern District of Mississippi are the prosecutors for the case. The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA), assisted by the State of Mississippi Office of the Attorney General, investigated the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at NHTSA.GOV/odometer-fraud and tips on detecting and avoiding odometer fraud are available at NHTSA.GOV/staticfiles.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at Justice.gov. For more information about the U.S. Attorney’s Office for the Southern District of Mississippi, visit Justice.gov.

Original Article: https://www.justice.gov/opa/pr/two-mississippi-men-plead-guilty-odometer-fraud-scheme

Posted in Convictions, NOTFEA news, Odometer Fraud Statistics, Press Releases, South, United States

Texas Department of Motor Vehicles (TxDMV) – Press Release

NOTFEA

Texas Department of Motor Vehicles (TxDMV)

In April 2014, the Texas Department of Motor Vehicles (TxDMV) received several complaints from a county tax office regarding the use of fraudulent identification documents to transfer titles. The TxDMV opened an investigation and determined Damaris Sarai Martinez submitted over 40 title transactions listing fraudulent Texas driver licenses, fraudulent addresses, and fraudulent trade allowances. The TxDMV partnered with the Texas Department of Public Safety Criminal Investigation Division to further investigate Martinez. A search warrant was obtained for a location where she operated and fraudulent documents were obtained. Martinez was charged for violation of Texas Transportation Code, Section 501.155, False Name, False Information, and Forgery, which is a third degree felony. On February 24, 2017, she entered into a plea agreement for ten years confinement in the Texas Department of Criminal Justice and payment of a $2,000 fine. The sentence was suspended, and she was placed on probation for five years. Martinez was subsequently taken into custody by Immigration and Customs Enforcement for deportation.

Posted in Convictions, News Articles, NOTFEA news, Press Releases, South, United States

Road Warrior: Low miles? Used car may be too good to be true

NOTFEA

Hardly anybody I know pays much attention to the odometer reading when buying a used car — unless, of course, it’s exceptionally high. After all, low mileage is usually the main qualifier when buying a pre-owned vehicle because it suggests the two of you will likely enjoy a few more good years before it gives you serious trouble.

But judging by an arrest for odometer fraud in South Hackensack a week ago, ignoring a low-mileage reading might mark the beginning of serious trouble. “Odometer fraud? How’d they do that?” said Sal, an otherwise astute car owner I know from Barnegat.

Like me, Sal thought rolling back odometers was the kind of crime that all but disappeared when computers were introduced in most cars around the end of the 20th century. Those of us who began driving when hood ornaments were still popular remember how amateur mechanics would break into the odometer housing behind the dashboard and roll back the miles by hand.

Those days are long gone. And so is the housing, said Robert Foster, an officer in a consortium of state investigators called the National Odometer and Title Fraud Enforcement Association.

“It’s easier to do now than it was before computerization,” said Foster. “With the right kind of knowledge and software, a mechanic can get into the onboard computer and reset the mileage to anything he wants.”

Theoretically, it doesn’t always require a master mechanic to do this dirty work.

“Diagnostic and computerized equipment can be purchased online,” said Maureen Parenta, a spokeswoman for the Bergen County Prosecutor’s Office. “And there are how-to blogs and Internet videos” that can easily be accessed.

In the South Hackensack case, Alon Levin, owner of HQ Custom Design, was charged for allegedly using diagnostic equipment to access vehicle computers and lower odometer readings by tens of thousands of miles since 2012. It’s unclear which kinds of vehicles were affected, but Levin’s company website said the business specializes in customizing big-ticket luxury vehicles. Because the investigation is ongoing, Parenta couldn’t disclose how the fraud was uncovered, but police say investigations usually are initiated by sellers who belatedly realized they’ve paid more than several hundreds of dollars to buy vehicles with mileage reductions in the tens of thousands.

The losses don’t always stop there.

If a car is financed, the bank or finance company will likely increase the interest rate on the car loan. Insurance companies can hike the premium, too. And maintenance costs will likely rise faster for a car with 70,000 miles than it would have if it had been driven just 40,000.

Still, turning back an odometer requires a little more than a screwdriver and a little online know-how.

“Yes, the procedure only requires a scanner and the right software,” said mechanic Brian Shanahan, who owns Washington Garage in Bergenfield. “But the logistics aren’t so easy. The software is proprietary. If you work on cars for a living, you need authorization, which usually means you have to be a licensed franchisee who’s legally bound by a code of ethics. If you do something unethical or illegal, you lose the license, which means you can’t work on certain car makes. Essentially, you can lose your business.”

To say nothing of the legal penalties, especially for cases involving hundreds of vehicles.

Foster, an investigator for the Texas Department of Motor Vehicles, has helped in federal prosecutions that put violators in jail for five years or more. “Fines can be levied per vehicle and they can run in the tens of thousands,” he said. “On top of that, restitution can be ordered for thousands more.”

The National Highway Traffic Safety Administration estimates that nearly 500,000 annual usedcar sales in the United States involve odometer fraud. The cost to the American consumer: Easily $1 billion a year.

In the last 10 years in New Jersey, courts have individually held several dealerships responsible for cheating buyers out of $1 million or more. Frequently, these cases cross state lines. In one 2008 settlement, a defendant pleaded guilty to electronically rolling back odometers as much as 100,000 miles in cars sold in Brooklyn and Hackensack. One Ramsey dealer and its affiliates were initially assessed more than $900,000, a figure that was later reduced to $250,000. Last month, the state sued a Lodi used-car dealership — European Auto Expo — for deceptive practices that included one sale in which mileage allegedly was rolled back 60,000 miles.

Federal law requires that sellers register the mileage on the odometer at the time of sale. If the mileage is incorrect, a seller must disclose that fact to the buyer in a statement. But cars more than 10 years old are exempt.

“That loophole is more significant today than when the law was passed,” said Foster, “because cars last an average of about 11½ years now.”
Various law-enforcement groups are lobbying Congress to close the loophole.

Meanwhile, what can car buyers do to protect themselves?

NHTSA suggests asking to see the title and maintenance reports to ensure the mileage reported on these documents is consistent with mileage on the odometer. Foster suggests carefully checking brakes, clutch pedals and other vehicle components for wear to determine if they show wear consistent with odometer mileage.

“And always get a CarFax vehicle history report when buying a used car,” he added. “In most cases, it contains the information needed to make a wise purchase.”

Original Article: http://www.northjersey.com/news/road-warrior-low-miles-used-car-may-be-too-good-to-be-true-1.1556117

Posted in Geographic Locations, News Articles, NorthEast, NOTFEA news, Odometer Fraud Statistics, Television, Title Fraud, United States

Criminal Charges Filed After CBS4 Hidden Camera Catches Auto Dealer Red Handed

NOTFEA

AURORA, Colo. (CBS4) – An Aurora auto dealer has been shut down after an undercover investigation by CBS4, and the attorney general’s office has now filed criminal charges against the dealership.The undercover investigation began when Annette Martin reached out to CBS4. Now the State of Colorado Motor Vehicle Dealer Board has closed CMC Auto.

USED CAR Folo

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“I ran my own Carfax and right at the beginning it showed ‘total loss,’” Martin said.

She bought a used Hyundai Tucson from CMC but claims she was not told the SUV was salvaged, and the 44,000 miles on the odometer was actually supposed to be 83,000. She discovered the vehicle’s problems after the purchase.

Martin eventually got her money back, but within days the vehicle was back up for sale by the dealer.

“That made me very upset,” Martin said.

With a hidden camera an undercover CBS4 producer looked at the SUV after Martin returned the Hyundai. The manager, Martin Bernuy, never told the undercover producer the SUV was salvaged or about the odometer’s replacement. In fact, now the odometer replacement sticker was removed, which is a federal offense.

CBS4’s Jennifer Brice confronted Bernuy.

“But you were still trying to sell it after she brought it back knowing the problems with the car,” Brice said. “Why did you think that was okay?”

“I didn’t think it was okay, that’s the reason I didn’t sell it here,” Bernuy replied.

Bernuy told Brice he sold the Hyundai back to the auction.

The state’s Motor Vehicle Dealer Board began investigating CMC Auto after CBS4’s story aired. Bernuy also told an investigator he sold the car back to the auction but they discovered the Hyundai was sold to a man named Jim. Jim says he was not told about the odometer or salvage issue.

The state’s full investigation looked into 160 deals sold by CMC Auto. Seventy-three of those cars contained documents indicating CMC’s business model includes buying collision and hail damaged cars from auctions, repairing the cars, and then selling them to customers without written disclosure about the damages.

“You’re going to be on the news, on CBS4. Do you have anything to say about your business; how you’re running things? This is your opportunity,” Brice said to Bernuy.

“I like people (to) be happy with the car. If you are not happy with the car, come to me, I fix it,” Bernuy replied.

In the Motor Vehicle Dealer Board’s affidavit it says CMC Auto violated eight Colorado laws, from defrauding buyers, failing to disclose damages, and false odometers, among others. The board voted to suspend the dealer’s license.

“They have engaged in willful and deliberate acts and their conduct imposes a threat to public health, safety and welfare,” Motor Vehicle Dealer Board Agent in Charge Matt Heap said.

Knowing a car’s actual mileage and prior damage not only affects safety, but the car’s value — something Martin learned the hard way.

“It was very much a hassle and I was very afraid that were not going to get our money back and we were stuck with an 83,000-mile car,” Marin said.

CBS4 tried reaching out to the owners and manager of the dealership. They did not respond. The Motor Vehicle Dealer Board says the dealership has a few options — relinquish their license, attempt to negotiate a settlement, or request a hearing.

Original Article: http://denver.cbslocal.com/2015/09/14/criminal-charges-filed-after-cbs4-hidden-camera-catches-auto-dealer-red-handed/

Posted in Convictions, Midwest, News Articles, NOTFEA news, Television, Title Fraud, United States

Police: (PA)Nanticoke man altered odometer, title of car he tried to sell

NOTFEA

KINGSTON — A Nanticoke man faces multiple charges after he allegedly altered the odometer and title of a car he sold to a Kingston man.

State police at Wyoming say Terry Matthew Panetta, 33, acquired a silver Ford Mustang and the title to the vehicle in September 2013, then disassembled the instrument cluster and altered the odometer by “blacking out” digits with a black marker.

Panetta then altered the vehicle title to indicate that the vehicle had less mileage than the actual mileage recorded, and then offered the car for sale on the Craigslist website, police said.

A 21-year-old man from Kingston responded to the ad, met with Panetta to see the vehicle at a location on Pringle Street in Kingston and arranged to buy the car from Panetta, according to police.

After the vehicle sale, the odometer discrepancy was discovered and the Kingston man, whom police did not identify, contacted state police.

Following an investigation, police on Tuesday charged Panetta with felony counts of forgery, tampering with public records or information, changing an odometer reading and washing a vehicle title, a misdemeanor count of theft by deception/false impression and a summary count of improper transfer of ownership.

Panetta was arraigned before District Judge James Roberts and released on $25,000 unsecured bail. His preliminary hearing is scheduled for 1:30 p.m. Oct. 21 before Roberts.

Original Article: http://www.timesleader.com/news/local-news-news/50452291/

Posted in News Articles, NorthEast, NOTFEA news, Odometer Fraud Statistics, Press Releases, Television, Title Fraud, United States

Feds Charge Pair with Sales of 247 Mileage Tampered Cars

NOTFEA

Odometer on DashboardAccording to Federal prosecutors, from as early as 2004 and through at least 2010, Kyle Novitsky, 45, and Judith Aloe, 52, both of North Miami Beach, FL, purchased high-mileage, used motor vehicles in Florida, California and elsewhere from a national vehicle leasing company.  Thereafter, Novitsky and Aloe allegedly altered the motor vehicle titles and sales documentation associated with these vehicles to reflect lower mileage, and, relying upon such fraudulent certifications, the Commonwealth ofPennsylvania issued motor vehicle titles reflecting the false mileage.

On January 17, 2013, a federal grand jury in Philadelphia unsealed an indictment charging Novitsky abd Aloe with making false odometer statements, securities fraud and conspiracy to commit these offenses. Novitsky and Aloe are charged with selling 247 motor vehicles — some with mileage fraudulently understated by over 100,000 miles — at wholesale automobile auctions in Manheim, PA, and elsewhere, and providing Pennsylvania titles that the defendants knew were issued based upon fraudulent lower mileage.

Note: Charges in an Indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Department of Justice, Office of Consumer Protection Litigation offers an online resource about Odometer Tampering and also offers this helpful consumer checklist:

Ways to Help Avoid Being Victimized by Odometer Fraud

Have a mechanic you trust check out the car. This will cost money, but it can save much more.

Look for loose screws or scratch marks around the dashboard. This is pertinent primarily to mechanical odometers which can be manipulated with tools.

Also on mechanical odometers, check to make sure that the digits in the odometer are lined up straight–particularly the 10,000 digit.

Test drive the car and see if the speedometer sticks.

Check for service stickers inside the door or under the hood that may give the actual mileage. Odometer tamperers try to find these as well, but sometimes miss one.

Look in the owner’s manual to see if maintenance was listed, or if pages that might have shown high mileage were removed.

Ask the dealer whether a computer warranty check has been run on the car.

Use a commercially available computer search program that checks for mileage alterations. Some car dealers will give you one of these for free if you ask for it. While this is an important step to take, it is not foolproof by any means because not all high mileages are recorded on paperwork that makes its way to these databases.

Ask to see the title documents and look to see if the mileage reading on the documents has been altered.

Look to see if the steering wheel was worn smooth. Look for other signs of excessive wear on the arm-rest, the floor mats, the pedals for the brakes and gas, and the area around the ignition. If these items were recently replaced, that could also indicate efforts to hide the car’s true use and mileage.

Don’t assume that mileage is accurate just because the vehicle has an electronic odometer.

Original Article: http://www.forbes.com/sites/billsinger/2013/01/22/feds-charge-pair-with-sales-of-247-mileage-tampered-cars/

Posted in Convictions, Hacking Tools, News Articles, NOTFEA news, Odometer Fraud Statistics, Press Releases, Techniques, Title Fraud, United States

(Raleigh) Man accused of rolling back car odometers

NOTFEA

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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/

Posted in Convictions, News Articles, NOTFEA news, Odometer Fraud Statistics, Press Releases, South, Television, United States

Springfield cops say they’ve busted national crime ring involving stolen trailers

NOTFEA

SPRINGFIELD, Mo — A national crime ring – busted.

Investigators say a trailer theft operation here in the Ozarks reached far across the USA.

Detectives say South Valley Trailer, LLC, located at 1219 E. Division Street, would steal trailers, change the vin numbers, and then sell them out of state – as far away as North Dakota.

The bust dates back to December 2012, when several trailers were reported stolen in Springfield; security cameras captured some of them.

Someone spotted a missing trailer at South Valley a few days later, prompting a police investigation. Sales records showed transports to a company in North Dakota, who posted pictures of trailers of sale.

The pictures matched the descriptions of the stolen property.

Officers say details helped crack the case.

“People need to make sure they know serial numbers and the info of the trailers and keep them secure,” Lt. Kevin Grizzell tells KSPR News. “Keep them locked up and chain them. The harder you make it to steal, the less likely it is to be stolen.”

Detectives went back to the company’s offices last month and took several hard drives and computers. Officers think files saved on those drives will reveal the whole extent of the ring.

Grizzell says he expects prosecutors to file charges against South Valley’s owners later this month.

One owner already has a  long criminal record, including two convictions involving burglary and stealing.

Springfield police officers served a second search warrant last month on a company called South Valley Trailers.

Original article: http://www.kspr.com/news/kspr-springfield-cops-say-theyve-busted-national-crime-ring-20130401,0,344630.story

Posted in Convictions, NOTFEA news, South, Television, United States

Must See CBS Investigation and CA DMV Arrests – Handheld Odometer Tampering Tool

NOTFEA

Odometer fraud violates the Federal Motor Vehicle Information and Cost Savings Act, 49 U.S.C. § 32701 et seq., and gives rise to liability under the common law fraud tort and state UDAP statutes–but that doesn’t mean it doesn’t happen, as the story indicates. Posted by Holly Merz

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Posted in NOTFEA news, Techniques, Television

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NHTSA – Office Of Odometer Fraud Investigation

Consumer Protection Branch

The Federal Odometer Tampering Statutes

The Federal Odometer Tampering Statutes

US Code - Title 49 - Transportation

The National Odometer and Title Fraud Enforcement Association (NOTFEA) is a non-profit, professional organization formed originally in 1980 as the National Odometer Enforcement Association (NOEA).

The association is chartered as a non-profit corporation with the Commonwealth of Virginia and is registered as a 501(C)(3) organization with the Internal Revenue Service.

Membership in NOTFEA is restricted to individuals working for law enforcement and consumer protection agencies, licensing and motor vehicle departments, and private attorneys and investigators who are responsible for detecting, deterring, and prosecuting odometer, rebuilt/salvage, and other title fraud offenders under state, federal, and other applicable laws.

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