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Three Chicago Men Charged with Odometer and Title Fraud

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JUSTICE NEWS
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, November 3, 2022

A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.

According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.

Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.

The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.

Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.

More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

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Harrisburg man altered odometer readings on more than 150 cars sold on Facebook Marketplace, Craigslist

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Police: Harrisburg man altered odometer readings on more than 150 cars sold on Facebook Marketplace, Craigslist
Naomi Creason Aug 11, 2022 Updated Aug 11, 2022 0

A Harrisburg man faces charges after State Police said he altered odometer readings on unlicensed vehicle sales on Facebook Marketplace and Craigslist, which could have affected more than 50 victims from the surrounding area.

Earnest Fry, 47, was arraigned Thursday on nine felony counts each of dealing in proceeds of unlawful activity, theft by deception-false impression, deceptive business practices, washing vehicle titles, changing odometer readings and tampering with public information, as well as nine misdemeanor counts of making false applications for title registration and one count each of receiving stolen property and performing an action under false pretense.

Police said that Fry, over the course of five years, bought and sold more than 150 vehicles in the Harrisburg area. More than 50 of the vehicles Fry sold had their odometers tampered with prior to the sale.

Sentinel police log for Aug. 12
Police estimate more than 4 million miles were rolled back, costing victims about $150,000 in the fraud scheme. A majority of the victims are from the Harrisburg area, including its surrounding counties, and some are from out of state, police said.

Police said Fry was aided by Keith Fry and Calvin Everett, with each allegedly having varying knowledge of the operation. Keith Fry is charged with one felony count each of dealing in proceeds of unlawful activity, theft by deception, tampering with public information and changing odometer reading, as well as a slew of misdemeanor receiving stolen property counts.

Police said Everett is charged with one summary count of acting as a car dealer without a license, though court documents are not yet available on his case.

Earnest Fry and Keith Fry were both arraigned Thursday, with both remaining in Dauphin County Prison unable to post $10,000 cash bail each. A preliminary hearing for both men in the case is scheduled for Aug. 23.

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Three Men Sentenced for Selling Vehicles with Rolled Back Odometers

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U.S. Attorneys » Northern District of Iowa » News
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Department of Justice
U.S. Attorney’s Office
Northern District of Iowa
FOR IMMEDIATE RELEASE
Friday, May 20, 2022

District Attorney

 

 

 

 

Three men were sentenced today for selling vehicles on the internet after re-placing the vehicles’ odometers in order to sell the vehicles at a higher price.  In an attempt to avoid detection, the vehicles would be registered in several different names and then ultimately sold to the unsuspecting public. The public would not have purchased the vehicles had they known the true mileage on the vehicles.

Jerret Schreiber, age 50, from Parkersburg, Iowa, received 6 months prison term and 6 months home confinement after he pled guilty to wire fraud.  Evidence in the case proved Schreiber was involved in the sale of at least 17 vehicles.  He was ordered to repay $90,832.55 in restitution to the victims of his offense. At sentencing, Schreiber made a payment of $45,000 towards his restitution obligation.

David Stangeland, age 33, from Cedar Falls, Iowa, received a one month prison term after he pled guilty to conspiracy to commit odometer fraud.  Evidence in the case proved Stangeland was involved in the sale of at least 21 vehicles.  He was ordered to repay $85,050 in restitution to the victims of his offense.  At sentencing, Stangeland made a payment of $22,400 towards his restitution obligation.

Dustin Arends, age 36, from New Hartford, Iowa, received three years’ probation after he pled guilty to odometer tampering.  Evidence in the case proved Arends was involved in the sale of at least 6 vehicles.  He was ordered to repay $23,200 in restitution to the victims of his offense.  At sentencing, Arends made a payment of $14,000 towards his restitution obligation.

The three men were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Schreiber was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.  Stangeland was released on the bond previously set and is to surrender to the United States Marshal on June 23, 2022, at 10:00 am.  There is no parole in the federal system.

The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the United States Department of Transportation National Highway Traffic Safety Administration, the United States Postal Inspection, and the Iowa Department of Transportation.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 21-CR-2010.

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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.

GavelU.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 cash to purchase a vehicle.

Anyone with information related to odometer tampering can contact the NHTSA’s fraud hotline at 800-424-9393 or 202-366-4761.

 

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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.

Graph of common cars tampered with

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 consumers can avoid purchasing a vehicle that’s been clocked. Those looking to buy a used vehicle should always compare the odometer reading to the mileage listed on the car’s title, and look to see if the title appears altered in any way. It also helps to look over maintenance and inspection records, as well as oil change stickers, the condition of the tires, and overall wear and tear to see if it matches the vehicle’s mileage. Finally, obtaining a vehicle history report might cost a few dollars, but it could also save buyers thousands in the long run.

We’ll have more automotive insights like this to share soon, so be sure and subscribe to Ford Authority for more Ford Mustang news and non-stop Ford news coverage.

 

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San Jose Residents Plead Guilty To Wire Fraud Conspiracy In Craigslist Automobile Resale Fraud Scheme

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District Attorney for CaliforniaDepartment of Justice
U.S. Attorney’s Office
Northern District of California
FOR IMMEDIATE RELEASE
Wednesday, October 27, 2021

Defendants Agree To Pay Between $935,813 and $1,109,885 in Restitution As Part Of Plea Agreements
SAN FRANCISCO –Ramil Heydarov and Orkhan Aliyev pleaded guilty today to conspiracy charges related to a scheme to defraud purchasers of vehicles on the Craigslist website by rolling back the odometers on vehicles before reselling them, 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. The guilty pleas were accepted by the Honorable Susan Illston, Senior U.S. District Judge, and, along with the October 12, 2021, guilty plea of Seymur Khalilov, establishes that all three defendants charged in the case have now pleaded guilty to fraud conspiracy charges.

According to the defendants’ plea agreements, from at least October 2017 through December 2020, Khalilov, 32; Heydarov, 31; and Aliyev, 32, all of San Jose, conspired to purchase high-mileage vehicles, roll back the odometers, and falsify documentation to make the vehicles appear newer. Specifically, the co-conspirators altered the odometers of numerous vehicles and altered registrations and titles, among other items, to fraudulently decrease the mileage readings of the vehicles and, thus, increase their sales value. The co-conspirators then posted advertisements of the vehicles on Craigslist to advertise the vehicles to victims who were not aware of the fraudulent alterations. Additionally, the defendants admitted using doctored driver’s licenses containing their photograph but the names of prior vehicle owners to facilitate the sale of these vehicles. The co-conspirators each acknowledged that the goal of the conspiracy was to sell vehicles to victims for an increased price based on the fraudulent odometer readings. According to the plea agreements, the co-conspirators sold at least 78 vehicles with rolled back odometer readings, resulting in a total loss to the victims of greater than $550,000.

All three defendants were charged in a single criminal complaint filed on May 3, 2021, and each was charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. As a result of today’s proceedings, all three defendants now have pleaded guilty to the charge. In addition, the defendants each have agreed as part of their plea agreements to pay restitution to the victims of the conspiracy in amounts reflecting the defendant’s respective role in the conspiracy. Khalilov has agreed to pay restitution in an amount between $360,000 and $534,072 that will be set by the court. Heydarov agreed to pay restitution in the amount of $379,235 and Aliyev agreed to pay restitution in the amount of $196,578.

Judge Illston scheduled the defendants’ sentencing for February 4, 2022. In addition to restitution, the conspiracy charge carries a maximum statutory prison term of up to 20 years and a $250,000 fine. The court also may order a term of supervised release to follow the prison term. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Leif Dautch and Ankur Shingal are prosecuting the case with the assistance of Marina Ponomarchuk and Soana Katoa. The prosecution is the result of an investigation by Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the California Department of Motor Vehicles Investigations Division in Vallejo, the San Ramon Police Department, and the National Highway Transportation Safety Administration Office of Odometer Fraud Investigations.

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

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United States Of America Attorney Generals Office logoDepartment 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.

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
United States Of America Attorney Generals Office logo
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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US Attorney's Office New York
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 Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high mileage, used motor vehicles from a national vehicle leasing company, altered the odometers of the vehicles to reflect false, lower mileages, and then sold the vehicles at wholesale automobile auctions. On average, the odometers on the vehicles were rolled back by close to 70,000 miles.  Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices.

This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation, and the Internal Revenue Service-Criminal Investigation.

Assistant United States Attorney Catherine M. Mirabile of the Eastern District of New York and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch prosecuted the case.

The Defendant:

SHMUEL GALI (also known as “Sam Gali”)
Age:  48
Brooklyn, New York; Israel

E.D.N.Y. Docket No. 14-CR-652 (KAM)

 

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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

United states Attorney's office district of California logo

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, so that the defendants’ true names would not appear in the vehicles’ transaction history.

Each defendant is charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349.  The conspiracy charge carries a maximum statutory penalty of up to 20 years in prison and a $250,000 fine.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.

The charges contained in the criminal complaint are mere allegations.  As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.

The defendants each made their initial federal court appearance earlier today before U.S. Magistrate Judge Thomas S. Hixson.   Aliyev’s next court date is May 6, 2021, and Khalilov and Heydarov’s next court date is May 7, 2021.

Assistant U.S. Attorney Ankur Shingal is prosecuting the case with the assistance of Marina Ponomarchuk and Soana Katoa.  The prosecution is the result of an investigation by Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the California Department of Motor Vehicles Investigations Division in Vallejo, the San Ramon Police Department, and the National Highway Transportation Safety Administration Office of Odometer Fraud Investigations.

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