Category Archives: Press Releases

Odometer fraud on the rise in Austin and costing car buyers thousands of dollars

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Used car buyers in Austin are getting ripped off in record numbers. Con artists are rolling back the mileage on odometers to make the vehicles seem more valuable. The fraud is costing victims an average of $4,000 each. Kristin Young thinks she was duped. She and her husband bought a used car believing it had low miles. Instead, they discovered the odometer was rolled back about 67,000 miles to make the car seem more valuable. “$5,000 invested and it’s probably worth about $1,500,” said Kristin. “For us that’s a lot of money and a lot of sacrifice,” said Ferron Young. Carfax data suggests that 1.5 million vehicles on the road have had their odometers rolled back. 10-percent of them are in the state of Texas. “It is getting worse. It is growing every year,” said Chris Basso, a used car expert with Carfax. Basso setup a demonstration to show how easy it is to put any number you want on a digital odometer. “We’ve got a truck that has 230,000 miles on it right now,” said Basso. That would make the truck’s value around $3,600. But in less than one minute the odometer was rolled back to 130,000 miles. “And there you go it’s done already. 100,000 miles taken off the odometer,” said Basso. “Somebody can now charge more than double what this car is actually worth.” CBS Austin asked for a second demonstration using our own numbers. “We’re going to plug that in right now,” said Basso. And in 54 seconds the odometer was rolled back from 130,000 miles to 86,000. “And that’s the scary thing, isn’t it? You’re essentially hacking the car’s computer just by plugging it into the device that we have. Those things are available through internet searches that conmen are using to rip people off,” said Basso. … Continue Reading

Illinois Motor Vehicle Employee Known as “The Plate Plan” Sentenced for Vehicle Registration Fraud Scheme

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Department of Justice St. Louis, MO – Melvin Harmon was sentenced to 33 months incarceration and ordered to pay restitution in the amount of $119,359.92 for conspiracy to defraud the United States and mail fraud by assisting Missouri residents in registering their cars in Illinois. According to evidence at trial, between January 1, 2015 and December 20, 2016, Melvin Harmon was employed at a Granite City, Illinois office registering vehicles for the State of Illinois Secretary of State. He used his employment to assist Missouri residents in obtaining fraudulent motor vehicle registrations for others in exchange for a fee. Some of the Missouri residents learned of his services when they saw flyers advertising Harmon as “The Plate Man.” In March 2016, investigators with the Illinois Secretary of State discovered that Harmon had been charging Missouri residents $350.00 to $700.00 in order to fraudulently register their cars in Illinois. Doing so enabled the Missouri residents to evade payment of Missouri taxes. In addition, Harmon altered the price of the vehicles in order to reduce any payments that would be paid to the State of Illinois as a result of the fraudulent registration. The alteration increased the amount he profited through the scheme. The State of Missouri lost in excess of $119,359.92 in sales tax revenue due to the fraudulent conduct. The precise loss of personal property tax income to the State of Missouri and local municipalities has not been determined. Harmon, 40, Belleville, IL, was found guilty on May 18, 2108 after a federal jury returned five guilty verdicts. He appeared before U.S. District Judge Henry E. Autrey. The case was investigated by the Missouri Department of Revenue-Compliance and Investigation Bureau and the State of Illinois Secretary of State Police. This case was handled by Assistant United States Attorneys Tracy Berry … 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

Tip leads investigators to stolen vehicles in suspected chop shop in Independence

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Emily Rittman/KCTV5 A number of stolen vehicles were found inside a suspected ‘chop shop’ in Independence. When officers inspected a storage lot, they found dismantled vehicles with VIN numbers missing. Among them was the truck that belonged to Brian Sollars, who posted a picture of his stolen 2012 GMC online on the Stolen KC Facebook page. Sollars said a stranger reached out to him shortly after, providing details about the truck. “He said he knew where my truck was and described it perfectly,” Sollars said. “He asked me if I had a pen and paper and told me to write it down. I thought he was full of it at first.” The address was for a storage lot off Atherton Road near 24 Highway in Independence. Sollars reported the tip to investigators who got permission to inspect the property. Inside there was a stolen tow dolly and a stolen John Deer gator. Outside, there was a stolen Kawasaki motorcycle, a stolen F350 truck, two stolen Dodge trucks and a stolen Harley Davidson tricycle bike. Randall Bennett III, the man who was subleasing the lot, is charged with operating an auto salvage business without a license. More charges are possible. Original Article: https://www.kctv5.com/news/tip-leads-investigators-to-stolen-vehicles-in-suspected-chop-shop/article_275d8e36-77c8-5c2f-9f50-6ac709ded15e.html

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Fennville couple accused of vehicle fraud

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GRAND RAPIDS, Mich. (WOOD) — A Montcalm County man is suing a Fennville couple for allegedly selling him a pickup truck that had nearly 150,000 more miles on it than its odometer showed. Anthony Woldring Roberts and his wife, Ashley Roberts, are accused of violating the Federal Odometer Act, fraud and reselling vehicles without a dealer license through their business, A&A Quality Services. In the federal lawsuit filed in Grand Rapids Tuesday, lawyers for Jarred Stratton say the couple bought a pickup truck from Chicago businessman Ramiro Padilla, who is accused of purchasing high mileage vehicles and often rolling back the odometers or swapping them out for ones displaying a lower mileage. The lawsuit accuses Padilla of buying the pickup truck from a Colorado auction, then getting a new title in Illinois, a state that does not disclose mileage in its titles. The lawsuit claims Padilla posted an internet ad to sell the pickup truck. Stratton’s lawyers say in the ad, Padilla stated the vehicle had around 299,000 miles but he had swapped out the odometer for one that showed 151,000 miles. The ad stated he could correct the odometer or leave it as is, according to the lawsuit. Stratton’s lawyers said Roberts purchased the pickup truck from Padilla but did not ask him to adjust it to the accurate mileage. He then got a Michigan vehicle title that did not disclose the vehicle’s mileage because it wasn’t listed on the “washed” Illinois title. The lawsuit claims Roberts advertised the pickup truck with 154,000 miles and never told Stratton otherwise when he purchased the vehicle for $19,500. Stratton said shortly after he bought the vehicle in November 2017, it started having mechanical issues that have continued to this day. He said he didn’t find out that the mileage was much … Continue Reading

Maine couple stuck with a lemon of a vehicle – and now they know why

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Patrick and Kristi Smith of Waterville stand with their 2005 Subaru Outback after learning Thursday that the vehicle’s seller, James Shaw of Standish, allegedly tampered with the odometer. “It actually answers a bunch of questions for us,” Kristi Smith said. “We’ve had nothing but problems.” Staff photo by Michael G. Seamans When Kristi Smith and her husband, Patrick, bought their Subaru from a Standish man in January 2017, she knew something seemed off. The 2005 Outback had only 117,000 miles on it, and for the Smith family, the price was right – $3,500. “We went to go buy the car and the guy wouldn’t look me in the face,” said Kristi Smith, 43. “But it was a really good deal with low miles, so it was like, ‘Whatever.’ ” Now, 15 months and several thousand dollars in car repairs later, the Smiths are among more than a dozen car buyers who were allegedly suckered by James Shaw, 35, who has been charged with tampering with the vehicles’ odometers and other crimes. Shaw was supposed to appear Thursday in Cumberland County Unified Criminal Court to answer to the 17-count complaint, but he didn’t show up, so a judge issued a warrant for his arrest, court records show. The complaint, issued by the state Bureau of Motor Vehicles, is the culmination of two years of work. Until Thursday, the Smiths were unaware that their vehicle was the subject of a criminal complaint, or that the car’s mileage was fraudulent. When Kristi Smith heard the charges that Shaw faces, things clicked. The car that Shaw sold the Smiths had closer to 200,000 miles on it when they bought it, the complaint said. “It actually answers a bunch of questions for us,” she said. “We’ve had nothing but problems with that stinkin’ Subaru.” The … 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

Iowa DOT warning of cars sold with odometers rolled back

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SIOUX CITY, Iowa (KCRG-TV9) — A Sioux City car dealer was rolling back odometers on vehicles to show fewer miles and increase the vehicle’s value, the Iowa Department of Transportation says. The DOT says the fraud happened at Siouxland Sales in Sioux City from 2016 to 2018. The DOT says it got a tip in December of last year. An investigation found three victims and 14 vehicles that were tampered with. Authorities served a search warrant on Jan. 17. Siouxland Sales owner Francisco Hurtado was booked in the Woodbury County Jail April 26 on six counts of second-degree fraudulent practice. Anyone affected should call the Bureau of Investigation and Identity Protection at 515-237-3050 or email invbureau@iowadot.us with vehicle and contact information. Original Article: http://kcci.com/article/iowa-dot-warning-of-cars-sold-with-odometers-rolled-back/20172284?src=app

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Jackson Man Charged in Large Scale Vehicle Odometer Roll Back Scheme

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Jackson, Miss. – Mark Longgrear, 53, of Jackson, Mississippi was arrested yesterday and charged in a federal criminal complaint with rolling back the odometers of multiple high mileage vehicles and selling such fraudulently altered vehicles with doctored titles, announced U.S. Attorney Mike Hurst and Supervisory Special Agent David W. Sparks with the U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation. Longgrear appeared in court today for an initial appearance on the criminal complaint before U.S. Magistrate Judge Linda R. Anderson. According to the criminal complaint and affidavit, for at least the last four years, Mark Longgrear, operating individually and through his company Southern Auto Buyers LLC, bought more than 50 late model, high mileage vehicles from auctions, dealerships, and/or individuals, thereafter illegally altered the odometers of such vehicles to show lower mileage, forged and fraudulently created paperwork to secure new titles showing false lower mileage for these vehicles, and then sold said vehicles directly to individuals and automobile dealerships at much higher prices. He used internet websites to sell some of these vehicles directly to consumers, and also used employment and wholesale relationships with large Mississippi automobile dealerships in Jackson and Vicksburg to sell these fraudulently altered odometer vehicles to these dealerships, who in turn unknowingly sold them to consumers with this false information. “Vehicle odometer fraud affects us all, whether directly as consumers purchasing vehicles and being defrauded out of thousands of dollars or as the general public who can be endangered by these potentially unsafe vehicles. I commend the agents and prosecutor for rooting out this far-reaching scheme. In order to protect consumers and safeguard the general public, our office will relentlessly pursue and vigorously prosecute those whom break federal law by rolling back vehicle odometers,” said U.S. Attorney Hurst. Each violation … Continue Reading