Category Archives: News Articles

Feds Charge Pair with Sales of 247 Mileage Tampered Cars

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According 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 … Continue Reading

(Calgary) Dozens of victims caught in odometer roll back scam

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A Calgary man is facing charges in connection to a vehicle odometer roll back scam that defrauded more than 50 people. The Economic Crimes Unit was notified in January by a credit card company that a number of skimmed cards were being used for fraudulent purchases in Calgary. Police say the cards were being used to service vehicles and purchase vehicle parts and that the vehicles being serviced, were purchased at an auction house. Investigators say that the vehicles had high kilometres but they had been rolled back between purchase from the auction house and attempting to sell them online. “Investigation by the constables revealed that the offender was purchasing vehicles from the auction house at which time he would take those vehicles and have small repairs doe to them, maybe tune ups etc., change some parts out and take them to auto repair facilities where we believe that the odometers were rolled back. He would then list those vehicles on kijiji, Craig’s List, and the Auto Trader for sale and individuals would then come into negotiation with him to purchase those vehicles,” said S/Sgt. Kristie Verheul from the Economic Crimes Unit. They say that in one case, approximately 208,000 kilometres were rolled back. The suspect in the case purchased 54 vehicles over three years. Andriy Plysiun, 28, of Calgary, faces one count of fraud over $5,000. Police estimate the value of fraud is $300,000 and say that number is likely to increase as more victims are identified. Original Article : http://calgary.ctvnews.ca/dozens-of-victims-caught-in-odometer-roll-back-scam-1.2031958#ixzz3Krf3Hg5L

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Storm Surge: Beware of Title-Washed Cars

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automatic-content-migration CARS.COM — Shopping for a used car in Mississippi? Beware of title washing. The Magnolia State has the highest density of title-washed cars in the country, with 1 in every 44.6 used cars bearing a washed title, a Cars.com analysis has found. That’s well above the national average of 1 in 324.9 used cars. New Jersey, meanwhile, has the second-highest rate: 1 in 87 cars. Related: How to Know if You’re Buying a Flood-Damaged Car Why? In a word, hurricanes. Nearly a decade ago, Hurricanes Katrina and Rita left 600,000 flood-damaged cars across the Gulf States. And in 2012, Hurricane Sandy reportedly left more than 200,000 storm-damaged cars in New Jersey and New York. Salvage titles, or titles for cars that were retitled after they were written off as total losses by insurance companies, proliferated after all three storms. Title washing also surged, where sellers alter vehicle titles to hide their salvage status and sell the cars as regular used vehicles. To do this, sellers often send those cars through states with looser title laws. By contrast, used-car shoppers in Ohio, Florida and Pennsylvania have less to worry about. Just 1 in 2,127 used cars in Ohio has a washed title. Florida (1 in 1,444.9 cars) and Pennsylvania (1 in 1,200.3 cars) round out the podium for low-risk states. CarFax, a provider of vehicle history reports, estimates that title washing could affect nearly 800,000 motor vehicles on U.S. roads. The company has state-by-state totals of title-washed vehicles — any cars (not just flooded ones) whose titles have been altered — which CarFax draws from all registrations issued since 1981. We indexed that data against the total number of registered cars per state, using IHS Automotive data from July 2014. Here’s what we found: automatic-content-migration IHS data encompasses only passenger vehicles (and not vehicles such as motorcycles … Continue Reading

1 Million Used Cars Are Hiding A Terrible Secret

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1 Million Used Cars Are Hiding A Terrible Secret By Hunter Stuart Tens of thousands of vehicles damaged by super storm Sandy are being temporarily stored on runways and taxiways at Calverton Executive Airpark in Calverton, New York, on January 9, 2013 in this aerial view. Insurance Auto Auctions Inc, a salvage auto auction company specializing in total-loss vehicles, acquired the cars and trucks that were damaged, destroyed or flooded by the storm and needed a place to store them. The company made a deal with the Town of Riverhead to lease the airport land and then the vehicles are auctioned online. AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images) Just because a used car is cheap and seems OK during a test drive doesn’t mean it’s safe to buy. Criminals have devised ways to artfully conceal structural damage on used cars, allowing vehicles to be sold for a profit even though they may have been shoddily rebuilt after an accident or submerged in ocean water during a hurricane. REAL LIFE. REAL NEWS. REAL VOICES. Help us tell more of the stories that matter from voices that too often remain unheard. Support HuffPost When insurance companies write off a vehicle as a “total loss” after an accident or other event like a flood or hail storm, the law in most states requires the vehicle’s title of ownership to be given a “brand.” That brand permanently marks the car as damaged goods to all potential future owners, but there are ways for it to be washed away. In the old days, it was done with chemicals. Now, photo editing software and digital scanners are used to print new titles. Or, cars can simply be re-registered in different states until the brand falls away. Because there is no national titling … Continue Reading

(Raleigh) Man accused of rolling back car odometers

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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/

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Lebanon Car Dealer Indicted For Fraudulent Titles, Falsified Mileage On Dozens Of Vehicles

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Nick Humphrey FOR IMMEDIATE RELEASE September 5, 2014 SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., automobile dealer has been indicted by a federal grand jury for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles. Kenneth W. Smith, 60, of Lebanon, was charged in a seven-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Aug. 26, 2014. That indictment has been unsealed and made public upon Smith’s arrest and initial court appearance. Smith operates Cars Unlimited in Lebanon. According to today’s indictment, Smith obtained fraudulent replacement titles for dozens of vehicles that were sold by Cars Unlimited between February 2010 and Nov. 7, 2011. Smith (operating through Cars Unlimited) allegedly applied for and received 54 replacement titles from the state of Missouri, each of which underreported the vehicle’s actual mileage between 95,000 and 209,000 miles. Smith allegedly resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for an aggregate total of approximately $346,450. Beginning in February 2010, when Smith purchased vehicles (through Cars Unlimited) at auto auctions, the vehicle titles he received showed each vehicle’s actual mileage. After purchasing a vehicle, Smith allegedly submitted an “Application for Missouri Title and License” seeking a replacement title for the vehicle. Although he sought a replacement title, the indictment says, he in fact possessed the original title for the vehicle. In each of those instances, Smith allegedly forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited. The federal indictment charges Smith with seven counts of mail … Continue Reading

Five men charged for allegedly winding back odometers in used cars

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FIVE men accused of winding back the odometers in high-end second-hand cars which they planned to offer for sale have been ordered to appear in court in June. Serious Crime Task Force officers arrested the men after raids on six Adelaide properties, where 23 cars — including four Mercedes, four BMWs, four Holdens, three Toyotas, a Range Rover and a Volvo — computer equipment, odometer manipulation equipment and cash were seized. Five firearms and ammunition were also claimed by police in a joint investigation with Consumer and Business Services officers, which began in February. A 22-year-old man, of Colonel Light Gardens, a Kingswood man, 63, a Prospect, man, 66, a Greenwith man, 66, and a Parafield Gardens man, 65, were arrested and charged with conspiracy to defraud and participating in a criminal organisation. Police have laid 20 charges but said the inquiry was continuing. Further charges are expected. The men were granted police bail to appear in the Adelaide Magistrates Court on June 27. Police say the investigation uncovered odometer tampering offences by licensed and unlicensed used car dealers. “(It is) a practice commonly referred to as odometer fraud, winding back or clocking,’’ Detective Chief Inspector John Gerlach said. “This practice is carried out in order to deceive purchasers about a vehicle’s true mileage and value in order to obtain an increased profit.” Any cars or other seized equipment deemed to be the proceeds of crime would be confiscated, Det Chief-Insp Gerlach said. Police also advised prospective car buyers could protect themselves from this type of offending by comparing an odometer reading against available vehicle records, including service records, safety certificates, log books or previous sales contracts. Also, they suggested obtaining a professional car inspection by the RAA or motor trade association, be cautious of vehicles that are significantly underpriced … Continue Reading

Effort in Colorado legislature would expand car salvage titles

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In addition to washing away homes, roads and bridges, the September floods that blanketed some parts of the state also destroyed sedans, minivans and pickup trucks. And those refurbished vehicles could easily be sold to consumers unaware of the prior damage because of a loophole in Colorado law that legislators at the Capitol are working to amend. Under current law, a vehicle more than six model years old that is considered totaled by an insurance company can avoid being labeled a “salvage vehicle,” making it easier to resell once fixed. The “salvage” title means the cost of repairing the vehicle exceeds its overall worth. Older vehicles, which are more likely to be deemed salvage, aren’t subject to that classification in Colorado. House Bill 1299, which the Senate Transportation Committee approved Tuesday night, would repeal the vehicle-age requirement so that the vehicle, no matter how old, would carry the salvage designation after insurers make a “total” payout. “It’s really a matter of helping to protect the consumers who are buying cars that are damaged. On the surface they look OK, the title is clean, but the car has gone through extensive repairs that will likely not keep it running,” said John Medved, who owns five car dealerships across the state and who backs the proposed measure. Because of the state’s more lenient salvage laws, flood-damaged cars from areas impacted by Hurricane Sandy have made their way to Colorado for clean titles, say proponents of the measure, which include groups such as the Colorado Automobile Dealers Association and the Colorado Independent Automobile Dealers Association. A dozen states exempt older cars from the salvage designation, and Colorado has the earliest age, said Howard Nusbaum, administrator of the National Salvage Vehicle Reporting Program in Stamford, Conn. Moreover, Nusbaum said, the average age of cars … Continue Reading

Arizona Attorney General sues car rental companies over fraud complaints

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By Mike Sunnucks  –  Senior Reporter, Phoenix Business Journal Arizona Attorney General Tom Horne has filed a consumer fraud lawsuit against a five affiliated car rental companies after receiving more than 150 complaints about service and pricing. Horne filed the lawsuit against Saban’s Rent-A-Car LLC, DS Rentco Inc. and A-AAAble Rental Ltd. The Attorney General’s Office said those companies have been doing business as Phoenix Car Rental and Saban’s Rent a Car. The Attorney General’s Office said the companies are owned by or affiliated with Dennis N. Saban. Calls to Phoenix Car Rental and Saban’s were answered by the same person who said the former was not affiliated with Saban and then said the latter was under new management. He declined further comment. The Attorney General’s Office said it sent an undercover agent in to pose as a customer. The agent claims he was overcharged, denied a copy of the rental agreement and was falsely told he would be arrested if he drove outside the Phoenix area because of specially coded licenses plates. Prosecutors also allege the car’s odometer reading was false. “Many customers complained about this businesses failure to disclose additional fees to renters, and stated that Mr. Saban became abusive when they inquired about extra charges added at the end of the rental.” Horne said. Original Article: http://www.bizjournals.com/phoenix/news/2014/03/05/arizona-attorney-general-sues-car.html

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[CA] Fraudsters using Internet to bait high-end car buyers

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Online fraudsters are going upscale and targeting unsuspecting buyers of newer-model and luxury cars, the Ontario Motor Vehicle Industry Council warned Friday. “This represents a change in strategy by curbsiders and fraudsters,” said Terry O’Keefe, spokesman for OMVIC.  “Curbsiders, unlicensed dealers who usually pose as private sellers, used to target buyers of inexpensive economy vehicles. Now,  we’re seeing a shift towards newer and high-end vehicles such as Mercedes, BMW, Lexus, and even newer-model pick-ups, which command higher prices and higher profit margins. Unfortunately, just as curbsiders commonly misrepresent themselves, they also misrepresent the vehicles they sell, which are often insurance write-offs, accident-damaged or odometer-tampered.” O’Keefe also said he knows of six Ontario residents who lost a total of about $250,000 to phoney websites claiming to selling luxury cars such as Ferraris and Corvettes. Car buyers have to be doubly vigilant: lurking in online classifieds are not only curbsiders, but out-right fraud artists operating fictitious dealerships supposedly based in the U.S, said O’Keefe.  These two trends are converging when it comes to car-buying rip-offs, he said. Residents of border cities, such asWindsor, need to be extra careful as they are accustomed to shopping across the border, said O’Keefe. “Consumers should understand they are only protected byOntario’s consumer protection laws when they buy from an OMVIC-registered dealer,” added O’Keefe. “If they buy privately or outside the province and something goes wrong, OMVIC can’t help.” These fraudsters target Canadians by advertising in Canadian online marketplaces, offering high-end and exotic vehicles at attractive prices, he explained.  “The fake dealerships had polished websites and phony reviews for the dealerships on numerous other websites,” he said. “Unfortunately neither the dealerships nor the cars they purported to offer existed. We know of numerous victims who lost tens of thousands of dollars each.” These online techniques persuade “even … Continue Reading