Category Archives: News Articles

Huntsville Man Convicted on Multiple Counts of Tampering with Vehicle Odometers and Bank Fraud

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Office of Public Affairs FOR IMMEDIATE RELEASE 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 … Continue Reading

Odometer fraud and how to avoid it

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  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.   Original Article: https://www.kbtx.com/content/news/Odometer-fraud-and-how-to-avoid-it-504991461.html

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Kennett man pleads guilty to fraud charge

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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 … Continue Reading

Digital license plates could be in Florida’s future

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Digital license plates may be the future and it could help save taxpayers millions. According to NBC News, a company called Reviver Auto has developed electronic license plates, dubbed Rplates. 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, … Continue Reading

Two arrested in misconduct investigation into Denton County Tax Office

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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 … Continue Reading

Emissions test, odometer fraud found at vehicle inspection stations in Harris County, deputies say

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HARRIS COUNTY, Texas — At least two people have been arrested after an investigation revealed the suspects were conducting fraudulent vehicle inspections at two separate stations in Houston, the Harris County Pct. 4 Constable’s Office said. Investigators received information that BI-LO Used Cars located at 2823 South Shaver Street was allegedly rolling back odometers on used cars and conducting fraudulent vehicle inspections using a procedure called clean scanning. Clean scanning is when an inspector tricks the monitoring tool by entering in the vehicle identification number for an automobile that would fail an emissions test, but then connects the monitor to a vehicle that would pass. Meanwhile, odometer rollback is the illegal practice of changing or altering the mileage readings on vehicle to make it appear as though it has been driven less than it has. Investigators report that over a 90 day period 54 percent of the vehicle inspections conducted were unlawful. Another investigation concentrated on Hardy’s State Inspection located at 12965 W. Hardy Road was also using a “clean scanning” procedure. The shop is a state-licensed vehicle inspection station, deputies said. The constable’s office reported over a 90 day period 76 percent of the vehicle inspections conducted were unlawful. Deputies said arrest warrants were executed at both shops, resulting in the arrest of Adel Yacoub and Raymond Mentzel. Yacoub and Mentzel are each facing two counts of tampering with a governmental record. Original Article: http://cw39.com/2017/10/20/emissions-test-odometer-fraud-found-at-vehicle-inspection-stations-in-harris-county-deputies-say/

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Texas Department of Motor Vehicles (TxDMV) – Press Release

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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.

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Victims of alleged auto title fraud and rollbacks reimbursed by district attorney’s office

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Many victims of JD’s Auto Sales were reimbursed Thursday morning. Customers were victims of alleged odometer rollback and title fraud. The car lot was shutdown and the owners were arrested Nov. 13, 2014. (Staff Photo: Kayla Langmaid) JONESBORO — Nearly two years after a Forest Park dealership was raided and the owners were arrested for multiple violations, the Clayton County District Attorney’s office is working to reimburse at least 90 victims who were affected by an alleged scam at the hands of the owners. Customers who fell victims to a purported scheme by JD’s Auto Sales on Jonesboro Road were given the opportunity to get some of their money back Thursday, thanks to the Clayton County District Attorney’s Office. District Attorney Tracy Graham Lawson presented 68 victims with a check for $1,250 Thursday morning at the Harold R. Banke Justice Center. The remaining victims will be mailed a check. Owner of JD’s Auto Sales, John Emumwen Egbe and his son, Sylvester Emumwen Egbe, were arrested during a raid Nov. 13, 2014. The two men face charges of certificate of title violations and false swearing due to a large number of odometer rollbacks and title fraud. The 130-car lot was raided by officers with Georgia Department of Revenue, Clayton County District Attorney’s Office, Forest Park Police Department and Clayton County Sheriff’s Office. A safe on the premises yielded $97,000, Lawson said. “We successfully forfeited $125,000 from JD’s Auto Sales,” she said. The victims will also not have to worry about any court fees, according to Lawson. DOR case Investigator Richard Trinkwalder said the lot had been under scrutiny for possible odometer rollback and title fraud. A rollback falsely inflates the value of a vehicle by reducing the number of miles shown on the odometer. The alleged title fraud involves recording the … Continue Reading

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

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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 … Continue Reading

Hidden camera investigation uncovers used car odometer rollback

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HOUSTON – Texas is the second state in the nation for odometer fraud, according to data compiled by Carfax. It occurs when an odometer’s mileage is rolled back, or lowered, to make the vehicle appear to have fewer miles. “When you lower the mileage on a vehicle, you are artificially inflating the value of it and costing consumers thousands of dollars,” said Chris Basso, a spokesperson for Carfax. The vehicle history report website estimates that over 150,000 vehicles in Texas are suspected to have an odometer rollback. Chris Zimmerman and his wife are driving around in one of those vehicles. When Zimmerman and his wife had a third child, it was time for a minivan, so they went to Craigslist to shop for a reliable vehicle with low miles. n June, Zimmerman came across an ad from a man who claimed to be selling his wife’s van and only identified himself as Mike. He was selling a Honda Odyssey and advertising the vehicle had less than 80,000 miles. When Zimmerman agreed to meet the seller, he didn’t expect to end up in the parking lot of a gentleman’s club off the Gulf Freeway. Mike, as it turns out, was not a private seller. He actually worked for Texans Motors Inc. and sold cars out of the back lot of that club. Despite hesitation, Zimmerman purchased the van. But his wife didn’t like it, so they decided to resell it. That’s where the problems began. When Zimmerman took the van to a dealership to sell, they ran a Carfax and told him the van actually had 150,000 miles on it. “It was double what was on the odometer,” said Zimmerman. He drove it back to Texans Motors Inc. to try to trade it for another van that said showed 115,000 miles … Continue Reading