Category Archives: Press Releases

Utah County man facing numerous odometer fraud cases is charged again

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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

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

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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

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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/

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NHTSA Announces Final Rule on Electronic Odometer Disclosures

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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

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Man Pleads Guilty to Vehicle Odometer Rollback Scheme

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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

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

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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

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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

Clocking is still affecting 6.49% of UK vehicles today

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A Rapid Car Check survey has found that 6.49% of vehicles have mileage issues. In a pool of 1 million, 64,986 were found to have issues, despite members of the European Parliament voting in favour of new legislation to combat mileage clocking in cars in 2018. The most common clocked vehicles were the Renault Grand Scenic and Renault Scenic, with a fail percentage of 32.66% and 32.14% respectively. The most common year of vehicle registration was 1998 with a 16.47% fail rate. Vehicle registered in the 1990’s made up six of the top 10, with no vehicles registered after 2003 present. Overall, rapid check estimates that 2,479,180 vehicles in the UK have mileage issues. Before passing legislation in 2018, German MEP Ismail Ertug said around 50% of used cars sold inside the EU, and between 30% and 50% of cars sold across borders within the EU, had been clocked. MEPs called new legislation that included national mileage registers to be made accessible across borders. Car buyers should be able to verify mileage readings regardless of the country it was previously registered. They also called for carmakers to set clear criteria for checking that odometers are tamper proof. Barry Shorto, head of industry relations at cap hpi, said at the time: “In Belgium and the Netherlands where readings are collected more frequently than elsewhere, odometer fraud has been almost eradicated. “We fully support calls for mileage alternation or clocking to be made a criminal offence. Even though clocking has a negative impact on road safety, only six EU countries recognise odometer manipulation as a criminal offence.” Original Article: https://www.motortrader.com/motor-trader-news/automotive-news/clocking-still-affecting-6-49-uk-vehicles-today-07-08-2019

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Car dealers linked to Columbia Count licenses revoked for odometer fraud

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ARLINGTON, Wis. – The Wisconsin Department of Transportation Division of Motor Vehicles has revoked the licenses for two car dealers with ties to Columbia County. An investigation by the Wisconsin Department of Transportation’s Dealer and Agent Section found that Best Motors and Manhattan Motors sold vehicles with mileage discrepancies, which is in violation of state law. The dealerships have licenses operated out of Arlington, Wisconsin. The licenses are linked to a business at 101 Skyline Drive in Arlington. Under Wisconsin state law, each licensee must have an office location and Best Motors and Manhattan Motors are registered to this location. It is possible that these licenses belong to dealerships operated in another state. The Wisconsin Department of Transportation’s Dealer and Agent Section licenses, regulates and resolves disputes about dealerships sales and warranty repairs, as well as educates the motor vehicle industry and public. The group also investigates complaints about odometer tampering involving dealerships and private sellers. Original Article: https://www.channel3000.com/news/two-columbia-county-car-dealerships-have-licenses-revoked-for-odometer-fraud/1105810604

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Two Mississippi Men Plead Guilty in Odometer Fraud Scheme

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Two Long Beach, Mississippi, men pleaded guilty today for their roles in a long-running odometer tampering scheme, the Department of Justice announced. Oscar M. Baine, 41, pleaded guilty to one count of conspiracy to alter odometers and one count of odometer tampering. Jeffrey Lyn Savarese II, 35, pleaded guilty to one count of conspiracy to alter odometers. Both defendants appeared in federal court in Gulfport before U.S. District Judge Louis Guirola Jr. The court set sentencing hearings for both defendants for Oct. 17. As part of his plea agreement, Baine admitted that he purchased high-mileage vehicles from wholesale automobile auctions, dealerships, and individuals, and arranged to alter the vehicles’ odometers to reflect false, lower-mileage readings. Baine admitted that he paid Savarese and others to change or alter odometers at his used car lot in Gulfport. Baine then sold the rolled-back vehicles to unsuspecting consumers for inflated prices. Savarese admitted that he began altering odometers for Mississippi and Louisiana used-car dealers in 2011 and reset the odometers on at least 200 used vehicles for Baine. “The Department of Justice is committed to prosecuting auto dealers who defraud consumers by selling vehicles with unlawfully altered odometers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Consumers rely on mileage information to assess the value and safety of a vehicle, and that information must be accurate.” “These criminals put the public at risk by rolling back odometers and defrauding hundreds of people out of one of their biggest investments. I commend the investigators and prosecutors for bringing these criminals to justice and for protecting the public from further fraudulent acts by these two. We will remain vigilant as to these types of crimes and continue working to make our roads and communities safer for everyone,” said Mike Hurst, U.S. … Continue Reading