Category Archives: Convictions

Emissions test, odometer fraud found at vehicle inspection stations in Harris County, deputies say

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HARRIS COUNTY, Texas — At least two people have been arrested after an investigation revealed the suspects were conducting fraudulent vehicle inspections at two separate stations in Houston, the Harris County Pct. 4 Constable’s Office said. Investigators received information that BI-LO Used Cars located at 2823 South Shaver Street was allegedly rolling back odometers on used cars and conducting fraudulent vehicle inspections using a procedure called clean scanning. Clean scanning is when an inspector tricks the monitoring tool by entering in the vehicle identification number for an automobile that would fail an emissions test, but then connects the monitor to a vehicle that would pass. Meanwhile, odometer rollback is the illegal practice of changing or altering the mileage readings on vehicle to make it appear as though it has been driven less than it has. Investigators report that over a 90 day period 54 percent of the vehicle inspections conducted were unlawful. Another investigation concentrated on Hardy’s State Inspection located at 12965 W. Hardy Road was also using a “clean scanning” procedure. The shop is a state-licensed vehicle inspection station, deputies said. The constable’s office reported over a 90 day period 76 percent of the vehicle inspections conducted were unlawful. Deputies said arrest warrants were executed at both shops, resulting in the arrest of Adel Yacoub and Raymond Mentzel. Yacoub and Mentzel are each facing two counts of tampering with a governmental record. Original Article: http://cw39.com/2017/10/20/emissions-test-odometer-fraud-found-at-vehicle-inspection-stations-in-harris-county-deputies-say/

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Better Call Behnken: Owner of Tampa car dealership accused of rolling back odometers arrested Holly Merz July 20, 2017

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by: Shannon Behnken Posted: Jul 18, 2017 / 01:38 PM EDT / Updated: Jul 18, 2017 / 01:38 PM EDT TAMPA, Fla. (WFLA) – The owner of a Tampa car dealership faces 42 felony charges, accused of funneling cars through her company, then rolling back odometers and flipping the vehicles to unsuspecting buyers on Craig’s List. The arrest of Soreny Marin Vargas comes after an 8 On Your Side investigation shined a light on one of the “low mileage” deals. Florida Highway Patrol investigated and found other victims. Marin Vargas faces multiple charges of uttering a forged instrument, scheme to defraud and odometer fraud. Investigators say Marin Vargas used her dealership, Tampa Preferred Motors, to buy high mileage cars at auctions and from other dealerships. She would then, according to FHP, “solicit family members in Venezuela to provide her copies of their passports in order to use their information to title vehicles in their names.” The dealership, investigators say, would then roll the odometers back to reflect a significantly lower mileage and then sell those cars to unsuspecting buyers on Craig’s List. One of those buyers, Mary Ellen Morgan, turned to 8 On Your Side in February, after she bought a van on Craig’s List. It was advertised as having 108,000 miles, but it actually had nearly 178,000 miles. The van had trouble on the way home, after Morgan paid $5,000 in cash to someone representing Marin Vargas. The deal was made in a Target parking lot in Brandon. Morgan is thrilled to hear of the arrest and she’s hopeful she’ll get her money back so she can buy a more reliable van. “I can’t go very far with this van because it is not in the best of shape,” Morgan said, adding that she hopes this arrest will save other car buyers from going through … Continue Reading

Police make arrests in months-long odometer-tampering scheme

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The Philomath Police Department culminated a five-month investigation Wednesday morning with the arrests of three men in connection with alleged odometer tampering through an auto sales operation. Cody Kin Marten, 21, of Philomath, faces four counts each for unlawful tampering with an odometer, theft by deception and conspiracy to commit theft — all felonies. Jeffrey Lynn Watters, 27, of Corvallis, and London Rae Fields, 22, of Corvallis, were cited for felony unlawful tampering with an odometer. “We have seized over a hundred titles and sales documents from the suspects and in the coming weeks, we are going to put out on the Philomath website, vehicles and license plate numbers that we know were sold by these individuals,” Philomath Chief of Police Ken Rueben said. “We are hoping to have victims contact us and verify what their vehicle was and what the odometer reading was on those cars.” Philomath police seized about 24 vehicles from JW Auto Sales at 3065 SE Third St., in South Corvallis as part of Wednesday’s operation. Watters registered JW Auto Sales with the state Nov. 4 and has been leasing space from B&R Auto Wrecking since December, according to B&R assistant manager Todd Boshart. JW Auto Sales added Fields as a co-owner through an amended license with the state April 4. Watters and Fields are roommates at 5915 Philomath Blvd., in Corvallis. “They’ve been buying parts from us for about two years, flipping cars,” said Boshart, who described the two partners as “super-nice guys” and said they had created no problems for B&R in the time they had leased space on the property. Philomath police worked in partnership with the Corvallis Police Department on the case. While serving the search warrant at Marten’s address at 1218 Monroe St., in Philomath, police stumbled upon a marijuana-growing operation. “What … Continue Reading

Used car dealership caught selling cars with modified odometers

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SOUTH MILWAUKEE, Wis. — A used car dealership was caught selling cars with modified odometers. Customers didn’t find out the odometers had been tampered with until after they bought them. Moe Motors in South Milwaukee is coming off a 21-day suspension after an investigation by the Wisconsin Department of Transportation revealed they lowered odometers and didn’t disclose the changes, which is required by law. “Set it back to 0 and you put a sticker on the doorjamb that says what the reading was, or you have to reset that odometer and the cluster to what the previous reading was,” said Michael Domke with the Department of Transportation. Domke said the company sold 11 cars with odometer violations. Moe Motors has to pay more than $13,000 to those customers. No one at Moe’s was available for comment Friday. Domke said violations like this are rare at licensed dealers. “Most common we see it in private party sales, like cars being sold on Craigslist or other places online,” Domke said. Moe Motors is back open, but the DOT said they could force them out of business if this happens again. Original Article: http://www.wisn.com/article/used-car-dealership-caught-selling-cars-with-modified-odometers/10217156

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Georgia Dealer and Title Clerk Sentenced in Odometer Fraud Scheme

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Two Georgia residents were sentenced in Atlanta, Georgia today for their roles in a conspiracy to alter odometers of used motor vehicles, the Justice Department announced. Rojen Burnett, 35, of Conyers, Georgia, and Amber McLaughlin, 33, of Duluth, Georgia, each were sentenced to 12 months in prison and three years of supervised release by Chief U.S. District Court Judge Thomas W. Thrash, Jr. Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles; McLaughlin was a former customer service specialist at the Motor Vehicle Department of the Georgia Department of Revenue. In 2012 and 2013, Burnett bought high-mileage used motor vehicles, altered the mileage on the titles, rolled-back the odometers, obtained new titles with false low mileages, and sold the vehicles to unsuspecting dealers. The dealers, in turn, sold them to consumers. McLaughlin helped Burnett commit odometer fraud by fraudulently issuing new Georgia titles with false low mileages in exchange for cash. “Buying a car or truck is one of the biggest financial decisions that consumers make,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Odometer fraudsters victimize consumers by making them pay substantially more for a used car that is less safe and less reliable than the consumer wanted or needed. The Justice Department will hold these fraudsters accountable for their crimes.”+ The defendants’ scheme included at least 310 vehicles whose odometers were rolled back and sold. Burnett and McLaughlin were also ordered to pay $399,363 and $176,725, respectively, in restitution to the victims of their fraud, who are the current owners of the cars with rolled-back odometers. This case was investigated by National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and the Georgia Department of Revenue. NHTSA estimates that odometer fraud … Continue Reading

Massachusetts State police warn of vehicle odometer rollback scam

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The Massachusetts State Police, in conjunction with the Missouri Highway Patrol have been investigating a series of consumer frauds, related to the purchase and subsequent sale of motor vehicles by a man and woman residing in Connecticut and the Kansas City Metropolitan area. The couple purchases a vehicle, typically from the Craigslist internet auction site. The vehicle’s mileage reading is altered and the vehicle is placed back on Craigslist. The two suspects pose as the previous owners of the vehicle. The investigation revealed approximately 48 vehicle purchases/sales within the past year in the Kansas City Missouri area and an undetermined number of vehicles sold in the Massachusetts, Rhode Island and Connecticut. It is possible not all the transactions involve an odometer rollback. Investigators are seeking to discuss these transactions with the sellers and purchasers of these vehicles. There has been no indication of impropriety on behalf of the sellers or purchasers, and investigators are still trying to determine the potential number of victims. The suspects do not use their names during, and typically use disposable pay-as-you-go cell phones. The man is approximately 5’9”, medium build, and has an “East Coast” accent. If present, the woman typically stays in a green Nissan Quest minivan with their children while the transactions are conducted. If you or someone you know has purchased a vehicle from these individuals please contact Massachusetts State Police Compliance Unit Trooper Stephen Walker, at 857-368-8626. Original Article: https://www.newbedfordguide.com/massachusetts-state-police-warn-of-vehicle-odometer-rollback-scam/2017/06/01

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Texas Department of Motor Vehicles (TxDMV) – Press Release

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In April 2014, the Texas Department of Motor Vehicles (TxDMV) received several complaints from a county tax office regarding the use of fraudulent identification documents to transfer titles. The TxDMV opened an investigation and determined Damaris Sarai Martinez submitted over 40 title transactions listing fraudulent Texas driver licenses, fraudulent addresses, and fraudulent trade allowances. The TxDMV partnered with the Texas Department of Public Safety Criminal Investigation Division to further investigate Martinez. A search warrant was obtained for a location where she operated and fraudulent documents were obtained. Martinez was charged for violation of Texas Transportation Code, Section 501.155, False Name, False Information, and Forgery, which is a third degree felony. On February 24, 2017, she entered into a plea agreement for ten years confinement in the Texas Department of Criminal Justice and payment of a $2,000 fine. The sentence was suspended, and she was placed on probation for five years. Martinez was subsequently taken into custody by Immigration and Customs Enforcement for deportation.

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Piqua man sentenced in odometer scam

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Scott Carnes Jr. A Piqua man convicted with three others in a scheme in which vehicle odometers were turned back before they were sold was sentenced Monday, Aug. 22, to 18 months in prison. Scott Carnes Jr. ,32, was convicted in Miami County Common Pleas Court of felony charges of tampering with records, tampering with odometers and transferring a motor vehicle with a tampered or nonfunctioning odometer. Prosecutors said the four men allegedly altered odometers and tampered with titles of used vehicles sold at two Piqua auto dealerships between May 2011 and November 2013. Prosecutors said they worked at Mills Auto Sales on South Street and A Auto Sales on Clark Avenue, both in Piqua. Carnes’ lawyer, Robert Huffman Jr., said he had no prior felony convictions and had cooperated with investigators. Carnes asked the judge for probation saying he took responsibility for his actions. Judge Christopher Gee said the men’s actions had a significant impact on people who couldn’t afford to pay much for a car. The men, he said, “were stealing their money for a basically worthless car.” Two other defendants already before the judge received sentences of 18 months and nine months in prison. The last defendant is scheduled for sentencing next week

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Former tax office clerks allegedly violated code by giving illegal discounts

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Two former employees of the Brazos County Tax Office turned themselves in earlier this week after authorities say they illegally gave people discounts on vehicle transfer taxes. According to the Brazos County Sheriff’s Office, April Arredondo, 36, of Bryan, admitted to processing about 50 fraudulent vehicle title transfers in ways that gave the person receiving the vehicle a tax discount. She told investigators she was compensated $20 to $50 per transaction. Sonya Tijerina Munoz, 26, of Bryan, told investigators she submitted a similar fraudulent affidavit to Arredondo for her to process, authorities said. Each woman bonded out of jail shortly after they were booked. They’re accused of violating the Texas Transportation Code by providing false information. If convicted, each woman faces two to 10 years in prison and a $10,000 fine for the third-degree felonies. According to a probable cause statement from the sheriff’s office, who investigated the case with the help of the Texas Department of Motor Vehicles, county tax employees observed Arredondo processing title transfer applications while no customers were present, and that signatures may have been forged. Arredondo was terminated from the tax office in February when the employees reported what they saw, the report says. Munoz resigned her position in late spring. The DMV investigator ran a report of the transactions Arredondo processed and found more than 30 transactions that were possibly fraudulent. The investigator noticed numerous transactions that were processed as gift transactions, which allows the owner of a vehicle to give that vehicle to a relative and claim a partial exemption from paying state sales tax for the vehicle. In the case of gift transactions, the seller and buyer both have to sign a gift tax affidavit and it has to be notarized. The investigator ran the names of both parties in each gift … Continue Reading

Victims of alleged auto title fraud and rollbacks reimbursed by district attorney’s office

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Many victims of JD’s Auto Sales were reimbursed Thursday morning. Customers were victims of alleged odometer rollback and title fraud. The car lot was shutdown and the owners were arrested Nov. 13, 2014. (Staff Photo: Kayla Langmaid) JONESBORO — Nearly two years after a Forest Park dealership was raided and the owners were arrested for multiple violations, the Clayton County District Attorney’s office is working to reimburse at least 90 victims who were affected by an alleged scam at the hands of the owners. Customers who fell victims to a purported scheme by JD’s Auto Sales on Jonesboro Road were given the opportunity to get some of their money back Thursday, thanks to the Clayton County District Attorney’s Office. District Attorney Tracy Graham Lawson presented 68 victims with a check for $1,250 Thursday morning at the Harold R. Banke Justice Center. The remaining victims will be mailed a check. Owner of JD’s Auto Sales, John Emumwen Egbe and his son, Sylvester Emumwen Egbe, were arrested during a raid Nov. 13, 2014. The two men face charges of certificate of title violations and false swearing due to a large number of odometer rollbacks and title fraud. The 130-car lot was raided by officers with Georgia Department of Revenue, Clayton County District Attorney’s Office, Forest Park Police Department and Clayton County Sheriff’s Office. A safe on the premises yielded $97,000, Lawson said. “We successfully forfeited $125,000 from JD’s Auto Sales,” she said. The victims will also not have to worry about any court fees, according to Lawson. DOR case Investigator Richard Trinkwalder said the lot had been under scrutiny for possible odometer rollback and title fraud. A rollback falsely inflates the value of a vehicle by reducing the number of miles shown on the odometer. The alleged title fraud involves recording the … Continue Reading