NHTSA’s Changes to Odometer Disclosure Requirements Starting January 1, 2021
WASHINGTON – The U.S. Department of Transportation’s National Highway Traffic Safety Administration is reminding consumers that, starting January 1, 2021, odometer disclosures will be required for every transfer of ownership for the first 20 years, beginning with Model Year 2011 vehicles. Model Year 2010 and older vehicles will continue to be subject to the previous 10-year disclosure requirements and thus are exempt from extended Federal odometer disclosure requirements.
The U.S. fleet of vehicles is, on average, older than ever, and NHTSA finalized this rule late last year to address an increase in odometer fraud involving older vehicles.
Model Year 2011 or newer vehicles will only be exempt from the odometer rules after 20 years. To comply with Federal law, anyone transferring ownership of a Model Year 2011 or newer vehicle will be required to provide an odometer disclosure to the new owner.
Model Year 2010 and older vehicles will continue to be exempt from federal odometer disclosure requirements. Sellers of Model Year 2011 vehicles must continue to disclose odometer readings until 2031.
By Pat Reavy@DNewsCrimeTeam Aug 6, 2020, 10:09am MDT
SALT LAKE CITY — A man who has several pending cases on charges of changing the odometers of vehicles and selling them has been charged yet again.
Steve Stone, 25, of Lehi, was charged Thursday in 3rd District Court with fraudulently changing an odometer, a third-degree felony.
On July 11, 2019, a man met with Stone to buy a vehicle he found online, according to charging documents. After purchasing the vehicle, the victim “checked the Carfax history and discovered a mileage discrepancy of over 90,000 miles,” the charges state.
The victim then found an article that originally appeared in the Deseret News that talked about Stone being accused of doing the same thing, and recognized Stone as the person who sold him the vehicle, according to charging documents.
For Stone, it’s the latest in a series of investigations involving odometer tampering.
He and two family members were charged in April 2019 with five counts of communications fraud and five counts of odometer violation. A pretrial conference for that case was scheduled for Aug. 24.
Stone was charged with similar crimes in April, July and October of 2018, and July 2017. A preliminary hearing regarding all of his pending cases was scheduled for Aug. 24.
Stolen cars were sold to unsuspecting buyers, police say
By Scott Gordon • Published June 11, 2020 • Updated on June 11, 2020 at 10:55 pm
Auto theft investigators say they’ve busted a “high-tech” ring of North Texas car thieves who hacked into newer-model Nissans, made their own electronic keys, and sold the cars to unsuspecting buyers.
“It can happen so fast,” said Commander Brian Sudan of the Tarrant Regional Auto Crimes Task Force. “We’ve seen thieves who can hack these cars in less than three minutes.”
The ring stole more than $1.2 million worth of cars from the streets of North Texas, some of them virtually brand new, police said.
Sudan didn’t want to give too many details on how the thieves were able to drive off in new cars but said they worked with used car dealers to get clean titles.
They do it by replacing the vehicle identification numbers so nobody knows it’s stolen, he said.
The number on a stolen 2020 Altima, for example, really belonged to another Altima which was found on a salvage lot to be sold for scrap.
Police have identified up to 62 stolen vehicles but suspect there are more. Only a small number have been recovered, Sudan said.
Gustavo Torres, 33, the alleged ringleader of the operation, was arrested.
Investigators searched three used car dealers in Dallas who took the stolen cars and sold them to unsuspecting buyers.
“They have no clue they are buying a stolen car,” Sudan said.
So two people claim to own the same car.
“We run into some very sticky situations,” he said. “Somebody bought this car, paid a lot of money for it. And then there’s a person who lost this car and lost a lot of money.”
Sudan said the courts will have to decide the rightful owners.
He said there is little owners can do to protect their cars from getting hacked and stolen but did suggest locking doors, parking in well-lit areas and in a garage if possible.
As for used-car buyers, Sudan suggested researching the title and if it shows the car has been salvaged, it may indicate a problem.
While this car theft ring targeted Nissans, he said other thieves have learned how to hack into other brands such as General Motors.
INDIANAPOLIS (May 29, 2020) — After receiving a consumer complaint about an auto dealer who illegally kept warranty payments, the Indiana Secretary of State’s Office has secured restitution for those affected by the crime.
In July 2019, a consumer contacted the Auto Dealer Services Division of the Secretary of State’s Office, claiming she had paid Stephens Automotive Group for a warranty, and that the warranty was never received by the warranty company. An investigator from Dealer Services reached out to the warranty company to confirm that Stephens Automotive Group had failed to transfers funds for several warranties, which failed to activate the warranties.
Multiple complaints followed over the next two months, and Dealer Services collected evidence verifying the consumer claims. In December 2019, an investigator from the Division met the owner of Stephens Automotive Group, where the owner admitted to not sending the money to the warranty company.
In February 2020, the Division issued an order for restitution requiring Stephens Automotive Group to pay a total of $8,673.00 to five consumers.
“I am proud of the work done by the Dealer Services Division, and very glad that this consumer complaint resulted in restitution,” said Secretary of State Connie Lawson. “Because of the cooperation between our Division, our constituents, and the warranty company, we were able to bring this case to a quick and fair conclusion.”
Consumers may file complaints against an Indiana auto dealership by visiting the Auto Dealer Services Division website at https://www.in.gov/sos/dealer/index.htm.
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
