Category Archives: Press Releases

San Jose trio sentenced in odometer rollback scheme

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SAN FRANCISCO – Three San Jose men have been sentenced to prison terms for their roles in a conspiracy to buy high-mileage vehicles, roll back their odometers to make them appear newer and sell them at “significant profits,” according to the U.S. Attorney’s Office. U.S. District Court Judge Susan Illston on Friday sentenced 32-year-old Seymur Khalilov to two years in prison and 32-year-old Orkhan Aliyev and 31-year-old Ramil Heydarov to 20 months in prison each, the agency said in a news release Friday. In October, the defendants pleaded guilty to one count each of conspiracy to commit wire fraud. According to their plea agreements, the defendants admitted to fraudulently selling at least 78 vehicles with altered odometers for a total of $550,000, prosecutors said. The scheme spanned from at least October 2017 to December 2020, prosecutors said. In one case, Khalilov rolled back the odometer of a vehicle from 35,000 miles to 35 miles, according to a sentencing memorandum filed by the U.S. Attorney’s Office. The defendants also admitted they advertised the vehicles for sale on Craigslist and used doctored driver’s licenses to facilitate the sales, prosecutors said. Aliyev, for example, had multiple licenses with the same photograph but different people’s names. In addition to prison terms, Illston ordered Heydarov and Aliyev to forfeit $379,325 and $196,578, respectively. A date to determine Khalilov’s restitution has not been scheduled. Victims of the scheme will have one year from the date of judgment to seek restitution. The National Highway Traffic Safety Administration, or NHTSA, estimates that odometer fraud in the United States results in consumer loses of more than $1 billion annually. Steps consumers can take to protect themselves include purchasing a vehicle report and comparing the mileage numbers, ensuring the seller’s information matches the information on the title, and not using … Continue Reading

Ford Mustang Among Top 20 Vehicles Subjected To Odometer Fraud

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By Brett Foote Automotive theft has grown steadily in recent years, moving to the forefront of vehicle-related problems most of us are concerned about, in addition to distracted drivers and reliability. But there’s another issue that Ford Mustang owners should apparently be worried about as well – odometer fraud. A recent study from Car Vertical found that the Mustang is one of the top 20 “clocked” vehicles across the globe, which means that the odometer has been altered to make it look like a vehicle has less miles than it has actually traveled. In the U.S. alone, the National Highway Traffic Safety Administration (NHTSA) estimates that 450,000 vehicles are sold each year with altered odometers, a crime that costs customers around $1 billion annually. Vehicles with lower miles obviously sell for more money than higher-mileage examples, which is what motivates dishonest folks to commit odometer fraud. Car Vertical analyzed over 700,000 used car history reports generated between November 2020 and November 2021 from 18 different counties to come up with its top 20 list of most clocked vehicles, which is dominated by German makes and models. A whopping 33.6 percent of BMW M5 models included in the study had altered odometers, and BMW vehicles make up around half of the top 20 list in total. Meanwhile, the Ford Mustang ranked ninth at 25.9 percent, a still-significant number that should serve as a major warning for anyone looking to purchase a used pony car. According to Car Vertical, the most clocked model years of the Mustang are 2014, 2015, and 2016. Coincidentally, the Mustang became a global model when the S550 generation launched for the 2015 model year. Odometer fraud is a common crime because it’s extremely easy to commit, and the rewards can be high. However, there are ways that … Continue Reading

Former Moline Businessman sentenced to 41 months in connection with scam to rollback odometers at used car dealership

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Department of Justice U.S. Attorney’s Office Southern District of Iowa FOR IMMEDIATE RELEASE Friday, October 15, 2021 DAVENPORT, IA- On Tuesday, October 11, 2021, Bradley Shane McCorkle, age 51, formerly of Moline, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to 41 months in prison for conspiracy to commit wire fraud in connection with a scheme to alter and rollback odometer mileage on used cars purchased by his Moline car dealership, 4th Avenue Auto Sales, announced Acting United States Attorney Richard D. Westphal. McCorkle and his co-conspirators tampered with the mileage readings on more than 150 vehicles that were later sold to unsuspecting buyers. The defendants used “straw buyers” to purchase vehicles in their names to “wash” the titles and insulate McCorkle and 4th Avenue from the criminal conduct. McCorkle was also ordered to pay $85,204 in restitution, serve three years of supervised release following the period of imprisonment, and pay $100 to the Crime Victims’ Fund. The investigation was conducted by the Iowa Department of Transportation, United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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East Moline Businessman sentenced to 37 months in connection with scam to rollback odometers at used car dealership

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U.S. Attorneys » Southern District of Iowa » News Department of Justice U.S. Attorney’s Office Southern District of Iowa FOR IMMEDIATE RELEASE Friday, October 15, 2021 DAVENPORT, IA- On Tuesday, October 11, 2021, Isaac Bell, age 34, of East Moline, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to 37 months in prison for conspiracy to commit wire fraud in connection with a scheme to alter and rollback odometer mileage on used cars purchased by his Moline car dealership, 4th Avenue Auto Sales, announced Acting United States Attorney Richard D. Westphal. McCorkle and his co-conspirators tampered with the mileage readings on more than 150 vehicles that were later sold to unsuspecting buyers. The defendants used “straw buyers” to purchase vehicles in their names to “wash” the titles and insulate Bell and 4th Avenue from the criminal conduct. Bell was ordered to pay $85,204 in restitution, serve three years of supervised release following the period of imprisonment, and pay $100 towards the Crime Victims’ Fund. The investigation was conducted by the Iowa Department of Transportation, Bureau of Investigation; United States Department of Transportation; National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation; and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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FOR IMMEDIATE RELEASE Tuesday, June 29, 2021 Used Car Dealer Sentenced to 60 Months in Prison for Odometer Tampering Scheme BROOKLYN, NY – Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by United States District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme, and ordered to pay $3,936,000 in restitution.  The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud. Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General of the Justice Department’s Civil Division, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the sentence. “The sentence sends a warning that this Office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” stated Acting U.S. Attorney Kasulis. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.” “An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Boynton. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.” “Automobile sales stand as one of the pillars of the American economy requiring transparency and integrity,” stated Acting IRS-CI Special Agent-in-Charge Fattorusso.  “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.” Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother … Continue Reading

Spend $300, make $8K: How criminals make thousands with an easy odometer dupe on used cars

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by Lisa Fletcher Thursday, May 20th 2021 7 ARLINGTON, Va. (7News) — Scroll to the bottom of this story for 7News On Your Side tips for how to protect yourself from buying a car with a rolled-back odometer. Forty million times a year, Americans buy a used car. They rely on the accuracy of the odometer to help them measure wear and tear on the vehicle. “I bought a 2010 convertible Mustang from a used car outlet that was also a reputable dealer here in Virginia Beach,” said Cheryl Mansfield. “Within barely two months my air conditioning went out, the transmission went out, and something happened with what we later found out was second gear.” Once the rollback was discovered, Mansfield couldn’t sell the vehicle, had to buy another car and roll thousands in negative equity into her car that replaced the Mustang. Photo: Cheryl Mansfield Cheryl Mansfield bought her car with 47,000 miles on it. Or so she thought. In reality, her car had closer to 147,000 miles. The odometer had been rolled back. “We had no idea that it had that many miles on it,” said Mansfield. To find out just how easy it is to roll back the miles on a modern digital odometer, we went to see Josh Ingle, owner of Atlanta Speedometer in Georgia. Ingle says because in most vehicles odometer rollsbacks are untraceable, there’s no way for a consumer to know. Photo: WJLA He says most consumers believe that a digital odometer can’t be rolled back. “Depending on the manufacturer, it’s pretty simple to do if you’ve got the right equipment,” said Ingle. “The equipment used to be $5,000 to $10,000, and some of these things are $300 now. You don’t have to disassemble anything. You can plug it into the car, change your number, … Continue Reading

Three San Jose Residents Charged With Conspiracy To Commit Wire Fraud In Automobile Resale Scheme

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Department of Justice U.S. Attorney’s Office Northern District of California FOR IMMEDIATE RELEASE Wednesday, May 5, 2021 Defendants Allegedly Rolled Back Odometers on Vehicles Before Reselling Them At A Significant Profit on Craigslist SAN FRANCISCO – A criminal complaint was unsealed today in federal court charging Seymur Khalilov, Ramil Heydarov, and Orkhan Aliyev with conspiracy to commit wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Homeland Security Investigations Special Agent in Charge Tatum King, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. According to the complaint, between 2016 and the present, Khalilov, 32; Heydarov, 31; and Aliyev, 31, all of San Jose, conspired to purchase high-mileage vehicles, roll back the odometers, and falsify documentation to make the vehicles appear newer.  The co-conspirators then allegedly sold the vehicles on Craigslist at significant profits.  The complaint alleges defendants fraudulently sold at least a dozen vehicles in this way for a total of at least $300,000.  In addition, the complaint states that the number of cars and amount of money at issue will likely change as the ongoing investigation into the scope and extent of the scheme continues. The complaint describes the multiple steps taken by the coconspirators to defraud purchasers of the cars.  For example, the complaint describes how defendants purchased high-mileage or old-model vehicles and then, with the assistance of other co-conspirators, rolled back the odometers of the vehicles.  Further, the defendants altered documentation related to the vehicles, including titles and registrations, to reflect the lower mileage amount and other fraudulent information.  The complaint alleges the fraudulent alterations were made with the goal of increasing the prospective sale price of the vehicles.  In addition, when selling the vehicles, the defendants portrayed themselves as the prior owners of the vehicles, including by altering California identification cards, … Continue Reading

Two Texas Men Plead Guilty in Odometer Fraud Scheme

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      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

Former Missouri Resident Admits Role in Odometer Roll Back Scheme

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U.S. Attorneys » District of Connecticut » News And Press Releases Department of Justice U.S. Attorney’s Office District of Connecticut FOR IMMEDIATE RELEASE Monday, February 8, 2021 Former Missouri Resident Admits Role in Odometer Roll Back Scheme SUSAN L. CUNNINGHAM, 48, of Monroe, Connecticut, formerly of Blue Springs, Missouri, pleaded guilty today before U.S. District Judge Michael P. Shea to one count of wire fraud stemming from the sale of numerous used vehicles with altered odometers. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference. According to court documents and statements made in court, between approximately August 2014 and October 2015, Cunningham and Wilfredo J. Albanese, while residing in Missouri, sold more than 40 vehicles with altered odometers to unsuspecting purchasers.  As part of the scheme, Cunningham and Albanese purchased high-mileage used vehicles and then used a variety of means to alter or reduce the mileage shown on the vehicles’ odometers.  They also concealed mechanical issues with those vehicles by removing “check engine” lights from the instrument panels, providing buyers with phony maintenance receipts and vehicle history reports, and concealing rust and other damage to the vehicle through paint or other means.  Cunningham and Albanese obtained Certificates of Title for the used vehicles they purchased.  Under the assumed identities of the persons listed on those Certificates of Title, they advertised and sold the vehicles to customers on Craigslist.org.  Most of the victim purchasers resided in Missouri. On May 22, 2019, a grand jury in the Western District of Missouri returned a 20-count indictment charging Cunningham and Albanese with offenses related to this scheme.  The case was subsequently transferred from the Western District of Missouri to the District of Connecticut for further prosecution. Wire fraud carries a maximum term of imprisonment of 20 years.  Judge Shea … Continue Reading

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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.

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