Rule will speed up processing of vehicle sales, help prevent odometer fraud
WASHINGTON – The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) today announced the publication of a Final Rule establishing standards under which States may allow for odometer disclosures in an electronic format.
Odometer fraud is a Federal crime and NHTSA has required sellers to disclose vehicle odometer readings at the time of sale for decades. However, most vehicle transfers have been subject to a requirement that odometer disclosures be made in a paper format with handwritten names and wet ink signatures.
This Final Rule removes the paper requirement by allowing for electronic disclosure systems that have robust security and authentication. This action also removes the last remaining Federal impediment to paperless motor vehicle transfers.
By removing the paper documentation requirement, today’s Final Rule opens the door for State Departments of Motor Vehicles to move toward paperless transactions. Paperless transactions will save time and reduce costs for consumers and industry, create economic efficiencies, and improve security.
“This Final Rule was written after carefully considering comments received from the public, including state motor vehicle departments,” NHTSA Acting Administrator James Owens said. “As more records are kept digitally, this rule will allow electronic filing of odometer information. Electronic records are more efficient than paper documentation and are harder to forge, helping to prevent fraud.”
Current law does not require odometer disclosure with the transfer of vehicles at least 10 model years old. Due to the current average vehicle age of almost 12 years, an increasingly large proportion of the fleet is subject to a heightened risk of odometer fraud. To accommodate older vehicles, the Final Rule will require odometer disclosures until vehicles are 20 years old, beginning with the 2010 model year.
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.
Huntsville – A federal judge today, sentenced a Huntsville man for tampering with vehicle odometers and bank fraud, announced U.S. Attorney Jay E. Town and U.S. Secret Service Acting Special Agent in Charge Robert Holloway.
A federal jury convicted Randy Eugene Greene, 62, in April of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. U.S. District Judge Abdul K. Kallon sentenced Greene to 30 months in prison, followed by three years supervised release and ordered him to pay more than $109,000 in restitution to the victims. The judge also entered a forfeiture judgment in the amount of $28,000.
“Greene violated the trust and confidence placed in him by the consumers and financial institutions,” Town said. “The theft and misuse of funds will not be tolerated by those who operate these type of schemes. They will be charged with federal crimes and will to go federal prison.”
“It is very important that consumers and financial institutions know that the vehicle being purchased from any auto dealership represents the true odometer reading,” Holloway said. “This type of fraud scheme can cause unwitting consumers significant financial hardship in repair bills from a vehicle they believed was in much better condition.”
Randy Eugene Greene, d/b/a RJ’s Auto Sales on South Memorial Parkway in Huntsville, was convicted by the jury of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. In the 11 counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016. The largest discrepancy in the changed odometer reading was approximately 218,678 miles. The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles. In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed. Greene was served with a notice of forfeiture related to the bank fraud counts, which includes but is not limited to a money judgement in the amount of $28,000.
U.S. Secret Service is investigated the case, which Assistant United States Attorney Russell E. Penfield and R. Leann White prosecuted.
HUNTSVILLE, Ala. (WAFF) – On Thursday, a federal judge sentenced a Huntsville man for tampering with vehicle odometers and bank fraud, announced U.S. Attorney Jay E. Town and U.S. Secret Service Acting Special Agent in Charge Robert Holloway.
A federal jury convicted Randy Eugene Greene, 62, in April, of 11 counts of tampering with vehicle odometers and three counts of bank fraud.
U.S. District Judge Abdul K. Kallon sentenced Greene to 30 months in prison followed by three years supervised release. Greene is also ordered to pay more than $109,000 in restitution to the victims.
The judge also entered a forfeiture judgment in the amount of $28,000.
“Greene violated the trust and confidence placed in him by the consumers and financial institutions,” Town said. “The theft and misuse of funds will not be tolerated by those who operate these type of schemes. They will be charged with federal crimes and will to go federal prison.”
Prosecutors say Greene was rolling back odometers at RJ’s Auto Sales on South Memorial Parkway. The 11 counts related to these convictions occurred between approximately Oct. 1, 2014, and Nov. 2, 2016. Prosecutors say the largest discrepancy in the changed odometer reading was approximately 218,678 miles, and the average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles.
In the three counts related to bank fraud, Greene was convicted of engaging in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed.
Greene was served with a notice of forfeiture related to the bank fraud counts, which includes but is not limited to a money judgement in the amount of $28,000.
The U.S. Secret Service investigated the case, which Assistant U.S. Attorney Russell E. Penfield and R. Leann White prosecuted.
LITTLETON, Colo. — The U.S. Justice Department calls it “clocking”: intentionally rolling back an odometer to make a vehicle appear less used.
Odometer rollback is “the single most common fraudulent issue in Colorado and nationwide.” That’s a bold statement made by one of this state’s top auto enforcement regulators.
So, based on a tip from one of our viewers, the FOX31 Problem Solvers decided to take a closer look at a business which advertises “odometer correction.”
Odo-Pro is a licensed business registered to the address of a corner house in Littleton.
State records show its owner is Peter Petrov Rains.
He sells parts and auto repair services, mostly through via mail.
Odometer repair and adjustment is permitted in some instances under the federal law. However, “if the mileage on the odometer cannot remain the same as before the service, the odometer must be reset to zero.”
What is not permitted is rolling miles on a vehicle backwards with the intent to defraud.
Here’s part of the federal law which says so:
327.03 A person may not
(2) disconnect, reset, alter, or have disconnected, reset, or altered, an odometer of a motor vehicle intending to change the mileage registered by the odometer;
(3) with intent to defraud..
The FOX31 Problem Solvers tested to see if Odo-Pro would reduce the miles, no questions asked, on one of our old news cars: a 2005 Dodge Durango.
We had a mechanic remove the odometer, which had 195,839 well-documented miles on it.
The FOX31 investigative team then printed off a single-sheet form we found on Odo-Pro’s website. It’s said “Odometer Correction Form” at the top.
We requested our odometer be programmed backwards — rolled back to 150, 839 — a 45,000-mile reduction.
The form required us to acknowledge that “altering the odometer for personal gain is illegal.”
And that “owners have a legal obligation to notify prospective purchasers if the vehicle’s mileage has been altered.”
We mailed our instrument cluster, an $89 cashier’s check from a local convenience store and that form to Odo-Pro in Littleton.
Four days later, our digital odometer came back in a box with “Peter Petrov’s” business card. The mileage was altered per our request: backward 45,000 miles from the original 195,839.
When the Problem Solvers team went to Odo-Pro to ask about its business practices, a man we’d seen working at Odo-Pro answered the door. He said he didn’t speak English. However, FOX31 was able to reach Peter Petrov Rains by phone from the front porch of the business address.
FOX31 asked Rains: “We had some complaints about your Odo-Pro business. That you’re essentially just rolling back odometers.”
Rains responded by telling our reporter, “What we do mainly, uh, we work only with parts. We don’t work on any kind of vehicles. We re-program clusters that have been replaced. So, we do pretty much what dealerships do. Just at a much lower cost.”
When FOX31 asked if he’d like to do an interview to explain how Odo-Pro’s “correction” program works, Rains declined.
While we were standing in front of Odo-Pro, it was hard not to notice the piles of boxes and packets heading to other states via the U.S. Postal Service: Florida, Virginia, Michigan and Pennsylvania, among others.
FOX31 called customers listed on packages, who confirmed some of the boxes indeed contained instrument clusters. None admitted to requesting rollbacks.
Chairman of the Automotive Service Association of Colorado, Brad Pellman, had never heard of Odo-Pro or Peter Rains before FOX31 called.
Pellman was curious how Rains was able to conduct a seemingly vibrant parts-and-services business correcting odometers.
“Until you brought it to my attention, I wasn’t even aware that this was being done by anybody but dealers or some kind of licensed secured facility that had the rights to do it,” Pellman told FOX31 during a recorded interview.
Pellman said that once in a great while, an auto-repair facility might re-set an odometer backwards for a vintage car or some other unique reason, but he says it’s not very common at all.
“Rolling back an odometer is certainly something we don’t even think about doing in our industry,” said Pellman. “The incentive seems to be that it would put less mileage on the odometers for a purpose I would consider fraudulent.”
FOX31 spoke with state and federal authorities who regulate and investigate reported cases of fraudulent odometer rollback services. Although declining on-camera interviews, agents said based on what happened with our TV vehicle’s odometer alone, they have serious questions about Odo-Pro’s business practices.
* FOX31 made certain the Durango — and that odometer — we used for this investigation would not be re-sold except for parts.
Huntsville – A federal jury on Thursday, April 4, 2019, convicted a Huntsville man on multiple counts of tampering with vehicle odometers and three counts of bank fraud, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
Following a four day trial before U.S. District Judge Abdul K. Kallon, and only a 20-minute deliberation by the jury, Randy Eugene Greene, 62, was convicted of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. A sentencing date has been set before Judge Abdul K. Kallon on July 17, 2019.
Randy Eugene Greene, d/b/a RJ’s Auto Sales on South Memorial Parkway in Huntsville, was convicted by the jury of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. In the 11 counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016. The largest discrepancy in the changed odometer reading was approximately 218,678 miles. The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles. In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed. Greene was served with a notice of forfeiture related to the bank fraud counts, which includes but is not limited to a money judgement in the amount of $28,000.
During the trial, the government presented testimony from the eleven victims who purchased the vehicles from Greene and his business. All said that they would not have bought the vehicles or would not have paid what they did had they known the true mileage on the vehicles. The government also presented evidence from auto auction dealers who testified about the mileage that was on the vehicles when they were originally sold to Greene. Witnesses, as well as Greene, who took the witness stand, said that changing odometer readings is a clear violation of federal law.
“This type of economic fraud hurts both consumers and financial institutions,” Town said. “Our investigators and prosecutors will continue to protect the public from fraud whenever it occurs so that they have confidence when making vehicle purchases, what is traditionally the second largest consumer purchase Americans make. This conviction reinforces the message to every individual who would engage in this kind of thieving behavior for personal gain that the United States Attorney’s Office will bring the weight of a federal prosecution upon them and make their victims whole.”
“It is very important that consumers and financial institutions know that the vehicle being purchased from any auto dealership represents the true odometer reading,” Williams said. “If you have purchased a vehicle from RJ’s Auto Sales of Huntsville within the last five years and believe you are a victim of odometer rollback fraud, please contact the U.S. Secret Service at 256-922-5408.”
Tampering with an odometer carries a maximum 3-year prison sentence and a maximum $250,000 fine.
Bank fraud carries a maximum penalty of 30 years in prison and a maximum $1,000,000 fine.
The U.S. Secret Service investigated the case, which Assistant United States Attorneys Russell E. Penfield and Leann White prosecuted.
Original Article: https://www.justice.gov/usao-ndal/pr/huntsville-man-convicted-multiple-counts-tampering-vehicle-odometers-and-bank-fraud
Even with the dawn on the digital odometer, used car buyers should be aware of odometer fraud. That’s the warning from Carfax.
“In fact these digital odometers can be easier to rollback because A) we’re not looking for it and B), there’s widespread availability of tools that simply plug into the car’s computer and essentially hacking it,” said Chris Basso of Carfax.
Basso suggests checking with a site like Carfax or having an auto mechanic check out the car you’re considering before you purchase.
For the full demonstration of how a digital odometer can be rolled back, see the video player above.
CAPE GIRARDEAU, Mo. — The United States Attorney’s Office announced that Nicholas H. Brock, 36, of Kennett, Missouri, pled guilty to one felony count of mail fraud. He appeared before United States District Judge John A. Ross.
Brock admitted that beginning on or about Feb. 10, 2017, and continuing through about June 13, 2017, in Dunklin County, Missouri, he defrauded a lienholder for an over-the-road tractor-trailer truck financed by North Mill Equipment Finance, LLC, for a 2008 Peterbilt over-the-road truck in which the lender retained a security interest. Brock prepared and sent, via the mail, a Form 4577, Missouri Department of Revenue, Vehicle Owner and Lienholder notification to the lender, falsely claiming that a 2008 Peterbilt over-the-road tractor-trailer truck had been towed by his towing company, Elite Tow & Recovery, from Pendleton, Oregon, on February 10, 2017, for a “breakdown.” The towing charge was $16,096 plus storage costs of $100 a day. Brock mailed the fraudulent Form 4577 for the purpose of obtaining a clean title for that vehicle from the Missouri Department of Revenue as an abandoned vehicle, based on the lienholder’s failure to pay the tow bill after receiving notice of the bill.
Brock also prepared a Form 4576, Missouri Department of Revenue Abandoned Property Affidavit, in which Brock falsely represented to the Missouri Department of Revenue that the 2008 Peterbilt truck had been abandoned. Brock mailed that form to the Missouri Department of Revenue to obtain a Certificate of Title for the over-the-road truck, based on a bogus and false tow bill.
On or about May 11, 2017, Brock caused the mailing of an Application for Missouri Title and License for the 2008 Peterbilt over-the-road truck to the Missouri Department of Revenue to obtain a Missouri Certificate of Title for the 2008 Peterbilt truck. Brock then obtained a Missouri Certificate of Title for the 2008 Peterbilt over-the-road truck in the name of Elite Tow and Recovery from the Missouri Department of Revenue.
Brock pled guilty on Nov. 5. His sentencing is set for March 18, 2019. Brock faces a maximum punishment of 20 years of imprisonment and a fine up to $250,000.
This case was investigated by the Missouri Highway Patrol and the Missouri Department of Revenue. Assistant United States Attorney Paul W. Hahn handled the prosecution for the Government.
Rplates are now on sale in California, and will be available in Arizona, Texas and Florida in the near future.
Reviver Auto CEO Neville Boston said his company is working to legalize them in another nine states by the end of the year.
The plates retail for $699, plus a monthly service plan that costs up to $7.75 for the desktop browser-based software to manage the system and optional GPS tracking.
With the plates, drivers would never have to renew their tag in person at the DMV office or through the mail. They could simply do it online with no need to replace stickers each year.
The same goes for customization.
With a click of a button, you could have your favorite sports team, show off your alma mater or support your favorite cause.
Each plate’s unique characters are constantly displayed.
In an emergency, the tag displays weather advisories and Amber Alerts issued by the National Weather Service and law enforcement.
Rplates are estimated to save Californians around $20 million in postage spent by the DMV.
In Florida and by law the Department of Highway Safety and Motor Vehicle may conduct a pilot program to evaluate the designs, concepts, and technologies for alternative license plates. For purposes of the pilot program, the department shall investigate the feasibility and use of alternative license plate technologies and the long-term cost impact to the consumer.
Right now the pilot program is limited to license plates that are used on government-owned motor vehicles and DHSMV says there are no pilot programs in place.
Privacy/safety concerns
NBC News interviewed Dr. Ashraf Gaffar, an assistant professor of engineering at Arizona State University, who studies automotive technologies. He agreed that digital license plates could offer some benefits but cautioned that they might introduce other problems.
“Driver distraction is one of the biggest killers of teenagers in the United States,” said Gaffar, who is not affiliated with Reviver. “Having one more thing to look at while we’re driving will take our eyes off the road for a second or two more, which will have some side effects.”
Gaffer also warned that electronic plates could be “fertile ground for hackers,” and could raise privacy concerns. He said more research is needed before the digital plates go mainstream.
Original Article: https://www.wptv.com/news/state/digital-license-plates-coming-soon-to-florida
Two people were arrested on bribery charges last month in connection with a misconduct investigation into the Denton County Tax Office.
Former tax office employee Tramanski Johnson, who worked at the Lewisville branch, was booked into Denton County Jail on Sept. 12 after turning himself in on the bribery charge, police said. Juana Caballero, a notary public who allegedly notarized forged documents, was booked on the bribery charge Sept. 11.
The Denton County Sheriff’s Office investigated the case. The affidavit in support of the suspects’ arrest outlines a complex scheme involving bribes to process fraudulent vehicle title transfers.
The tax office collects property taxes, renews vehicle registrations and contracts with several car dealerships to issue titles on new vehicles. The office has six locations within the county, including Lewisville, Cross Roads, Frisco and Flower Mound. The main Denton office is at 1505 E. McKinney St.
County Tax Assessor/Collector Michelle French, who heads the office, declined to comment on specifics of the case.
“I’m not going to comment on any details just because it’s still a pending case,” French said.
A sheriff’s office investigator first learned about allegations of a county employee accepting bribes to process known fraudulent title transfers on July 31, according to the affidavit.
Johnson was identified as the employee, and the investigator reached out to him Aug. 2, the document stated.
Johnson, the affidavit said, admitted that he accepted about 80 cash bribes from Caballero, who also goes by the last name Munoz , to process the fraudulent title transfers.
Johnson said he was paid $100 per transaction.
The affidavit also did not specify who Caballero works for, only that she signed and notarized “several documents as an authorized agent for other dealerships,” the affidavit said.
No car dealerships were identified in the affidavit.
Later in the day on Aug. 2, investigators contacted Caballero at AA Auto Sales in the 1000 block of Texas Street in Lewisville.
Although police said she was a “common link” in the fraudulent transactions, she denied ever giving Johnson paperwork to process. She also said she paid “what she needed to,” but the document did not elaborate on what she meant.
Later in their investigation, police identified at least two title documents, notarized by Caballero, that contained forged signatures, according to the affidavit.
Police obtained arrest warrants for both suspects on Sept. 11.
French said Johnson, a Dallas resident, was hired at the tax office in 2010. She said he took another job for about two years before returning.
Johnson was placed on administrative leave Aug. 2 and submitted a letter of resignation on Aug. 3, according to documents obtained through an open records request.
He most recently worked as an office supervisor, according to the resignation letter.
JULIAN GILL can be reached at 940-566-6882.
CORRECTION: A previous version of this story misstated the amount of money involved in the bribery scheme. The affidavit stated the suspect accepted about 80 cash bribes of $100.
