News Articles Archives - Page 2 of 8

Two Texas Men Plead Guilty in Odometer Fraud Scheme

Home » Office of Public Affairs » News JUSTICE NEWS Department of Justice Office of Public Affairs FOR IMMEDIATE RELEASE Wednesday, April 28, 2021 Two Texas Men Plead Guilty in Odometer Fraud Scheme Two Texas men pleaded guilty today, to for their roles in an odometer tampering scheme. According to court documents, Nepthali Luna, 61, of San Antonio, pleaded guilty to one count of conspiracy to make false odometer statements and commit securities fraud, while his son, Devon Luna, 36, also of San Antonio, pleaded guilty to two counts of making false odometer statements and two counts of securities fraud. As part of their plea agreements, the defendants admitted that between 2016 and 2018, they engaged in a scheme to sell high-mileage, used vehicles with false, low mileage readings entered on the vehicles’ odometers, titles and odometer disclosure statements. According to court filings, Devon Luna purchased high-mileage vehicles through his company, Pioneer Auto Finance. The defendants then caused the vehicles’ odometers and titles to reflect false, low mileages, and they sold the vehicles for inflated prices to unwitting consumers. “The Department of Justice remains steadfast in its commitment to protect consumers against deceptive practices, including odometer fraud schemes,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “Consumers are entitled to truthful information about the vehicles they purchase, including the amount of miles that a used vehicle has been driven.” In pleading guilty, the Lunas admitted that they caused at least 225 vehicles to be sold with “rolled back” odometers. The defendants admitted that the scheme resulted in consumer losses of more than $550,000. Both defendants are scheduled to be sentenced on Aug. 3, 2021. Nepthali Luna faces a maximum sentence of five years in prison on the conspiracy charge. Devon Luna faces … Continue Reading

NHTSA December 22, 2020 Consumer Alert: 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.

Utah County man facing numerous odometer fraud cases is charged again

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. Original Story here

‘High-Tech’ Thieves Hacked Into Newer-Model Nissans and Drove Away

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 … Continue Reading

Secretary Lawson provides restitution to victims of auto dealer scam

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. View Original Story here https://calendar.in.gov/site/sos/event/secretary-lawson-provides-restitution-to-victims-of-auto-dealer-scam/

NHTSA Announces Final Rule on Electronic Odometer Disclosures

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. Read Final Rule

Man Pleads Guilty to Vehicle Odometer Rollback Scheme

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

Huntsville Man Sentenced to 2 ½ Years in Prison for Tampering with Vehicle Odometers

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 … Continue Reading

Huntsville car salesman sentenced for odometer tampering, bank fraud

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. [ Huntsville car salesman convicted of tampering with odometers, bank fraud ] 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. [ Federal investigators say Huntsville used car dealer rolled back odometers ] 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 … Continue Reading

News car odometer rolled back 45,000 miles by Denver-area business

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 … Continue Reading

NOTFEA

Working to deter odometer and title fraud

Category Archives: News Articles