Category Archives: Convictions

Used Motor Vehicle Dealers Indicted for Odometer Tampering and Money Laundering

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Office of Public Affairs FOR IMMEDIATE RELEASE A Queens, New York, man and his Israeli brother were charged in indictments unsealed today in federal courts in Philadelphia and Brooklyn, New York, with offenses related to a long-running odometer tampering and money laundering scheme, the Justice Department and the U.S. Attorney’s Office for the Eastern District of New York announced. Chaim Gali aka Mike Gali and John Triculy, 40, of Queens Village, New York, and Shmuel Gali aka Sam Gali, 42, of Israel, are charged in a 15-count indictment in the Eastern District of Pennsylvania (EDPA) with conspiracy, securities fraud and false odometer statements.  The Galis are also charged in a related two-count indictment in the Eastern District of New York (EDNY) with mail and wire fraud conspiracy, and money laundering conspiracy.  If convicted of the charges in the EDPA indictment, the defendants face a statutory maximum of five years in prison on the conspiracy charge; a statutory maximum of 10 years in prison for each securities fraud charge and up to three years in prison for each false odometer statement charge.   If convicted of the charges in the EDNY indictment, they face a statutory maximum of 20 years in prison for each of the charges. “Mileage is one of the most important factors in a consumer’s decision to purchase a used car,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Misrepresenting the mileage on a used car fraudulently induces a consumer to pay more money for less value, and it hides necessary information that will affect how a consumer maintains and repairs that vehicle.” The indictments allege that the Galis devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles they sold beginning as early as … Continue Reading

Car dealer who fraudulently sold cars damaged in Hurricane Sandy gets 3 years in prison

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Jonathan Olin, 42, of Manalapan, was sentenced to three years in prison today for orchestrating the creation of false vehicle titles in order to sell cars damaged during Hurricane Sandy, state authorities said. (Courtesy of N.J. Attorney General’s Office) TRENTON — A Middlesex County car dealer who used fraudulent vehicle titles to sell cars damaged during Hurricane Sandy was sentenced today to three years in state prison, state authorities said. Jonathan Olin, 42, of Manalapan, for former operator of D&D Auto Sales in Old Bridge, admitted in August that he obtained fraudulent “clean” titles for eight vehicles, seven of which were sold to unsuspecting customers by Pinky N Brain Corp., doing business as D&D. One of his associates, Jessie Dinome, 30, of Jackson, a former employee at the Freehold Motor Vehicle Agency, accessed state computers to create the false titles, the state Attorney General’s Office said. Dinome was sentenced to probation in October. The seven vehicles were sold for a total of about $86,000, authorities said. Olin pleaded guilty to theft by deception and was ordered to pay full restitution to the victims. A third person, Jacob Douek, 40, of Staten Island, N.Y., still faces charges in the scheme. The case was referred to the Attorney General’s Office by the state Motor Vehicle Commission after receiving information from the National Salvage Vehicle Reporting Program and ABC News, which investigated how flooded vehicles ended up on car lots. Original Article: http://www.nj.com/news/index.ssf/2014/12/car_dealer_who_fraudulently_sold_cars

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(Grand Rapids) Target 8: Odometer rollback revealed

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GRAND RAPIDS, Mich. (WOOD) — Marc Libants was attached to his old Honda Civic. He even refers to the 1997 four-door as a ‘she.’ He said it wasn’t easy giving her up, but he had no need for the old car anymore, so he sold it. Two days later, he spotted the Civic up for sale online. He knew it was his because it was missing the Honda insignia due to a previous incident. It also listed the phone number of the person to whom he had sold the car. “I got a little suspicious and as I read the ad, it said that the car had 127,000 miles on it and that kind of made some alarm bells go off,” said Libants. He said that wouldn’t be possible “unless he drove it in reverse for a long, long ways.” Target 8 has warned consumers about people rolling back odometers so they can jack up the price of old cars. When Libants saw the ad, he said, the car was being sold for $3,000. He had just sold it for only $800. Target 8 called the number on the ad and an undercover investigator met Antonio Lopez at the car in Grand Rapids. Lopez confirmed he was selling the car for $3000 because it had “no rust, good tires, brakes, clutch,” and he referenced the mileage. The undercover buyer told Lopez she was recording with her cellphone, but Lopez didn’t realize he was talking to a Target 8 investigator. When asked about the mileage, Lopez said, “Only 126,000 miles. Close to 127,000. And the engine always kept clean.” That’s nowhere near the mileage CarFax showed when Target 8 ran the Civic’s vehicle identification number (VIN). And the car’s previous owner, Marc Libants, had a receipt from an old repair at Fox Honda … Continue Reading

Odometer Fraud Case May Lead to Stiffer Penalties for Some Offenders

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An NBC 5 Consumer Investigation on odometer fraud prompts one division of the Texas Department of Motor Vehicles to recommend consumer-friendly changes to state law governing salvage dealers. These changes would protect consumers by giving the state tougher tools of enforcement against would-be violators. This potential change stems from a case against a DFW-area salvage dealer which wound up in small claims court then in the hands of the DMV. It started last year when Kristin and Ferron Young turned to Craig’s List when they needed a car on a tight budget. “We needed something that we felt like would be good for the family,” Kristin Young, mother of a kindergartener and a newborn, said. They found an ad for a 2000 Honda Accord, which described the car as very clean with 101,000 miles.  After seeing the car, they bought it for $3,200. “We ended up choosing the one that we bought because it had lower mileage,” said Young. The seller, salvage dealer Michael Eke, also had assurances. He said the car had been cared for and had only been in a little crash. But on the drive home they said they noticed problems immediately. The next day, the Youngs bought a CARFAX report, which revealed at the car’s last state inspection it had 160,000 miles. Odometer fraud costs consumer more than $1 billion a year, according to the National Highway Traffic Safety Administration.  But it can be difficult to prove, especially in older vehicles. That didn’t stop the Youngs from finding the truth. They ultimately discovered the car had been totaled and sold to salvage. The insurer gave them a picture of the odometer at the time of the wreck. It read 167,000 miles. Records show shortly after that, Eke bought the car, fixed it up and sold it … Continue Reading

Feds Charge Pair with Sales of 247 Mileage Tampered Cars

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According to Federal prosecutors, from as early as 2004 and through at least 2010, Kyle Novitsky, 45, and Judith Aloe, 52, both of North Miami Beach, FL, purchased high-mileage, used motor vehicles in Florida, California and elsewhere from a national vehicle leasing company.  Thereafter, Novitsky and Aloe allegedly altered the motor vehicle titles and sales documentation associated with these vehicles to reflect lower mileage, and, relying upon such fraudulent certifications, the Commonwealth ofPennsylvania issued motor vehicle titles reflecting the false mileage. On January 17, 2013, a federal grand jury in Philadelphia unsealed an indictment charging Novitsky abd Aloe with making false odometer statements, securities fraud and conspiracy to commit these offenses. Novitsky and Aloe are charged with selling 247 motor vehicles — some with mileage fraudulently understated by over 100,000 miles — at wholesale automobile auctions in Manheim, PA, and elsewhere, and providing Pennsylvania titles that the defendants knew were issued based upon fraudulent lower mileage. Note: Charges in an Indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The Department of Justice, Office of Consumer Protection Litigation offers an online resource about Odometer Tampering and also offers this helpful consumer checklist: Ways to Help Avoid Being Victimized by Odometer Fraud Have a mechanic you trust check out the car. This will cost money, but it can save much more. Look for loose screws or scratch marks around the dashboard. This is pertinent primarily to mechanical odometers which can be manipulated with tools. Also on mechanical odometers, check to make sure that the digits in the odometer are lined up straight–particularly the 10,000 digit. Test drive the car and see if the speedometer sticks. Check for service stickers inside the door or under the hood that may give the actual mileage. Odometer tamperers try to find these as … Continue Reading

Defendant in Odometer Tampering Scheme Sentenced to 60 Months’ Imprisonment

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Office of Public Affairs FOR IMMEDIATE RELEASE United States v. Kyle Novitsky and Judith Aloe Docket Number: 5:12-CR-657 (E.D.P.A.) On October 9, 2014, Kyle Novitsky was sentenced in U.S. District Court in Philadelphia to serve 60 months’ imprisonment on charges related to an odometer tampering conspiracy. He was also ordered to pay restitution of $1,482,000 to victims. In April, 2014, the defendant pled guilty to one count of conspiracy to tamper with odometers, make false odometer certifications, and commit securities fraud, and two counts each of securities fraud and making false odometer certifications. Novitsky rolled back odometers on used cars and trucks to make the vehicles appear more valuable. Doing business under various company names, Novitsky sold close to 250 vehicles with rolled back odometers. Novitsky’s co-defendant, Judith Aloe, is a fugitive, having failed to appear for trial in May in U.S. District Court in Philadelphia.

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Thirteen Area People Indicted On Fraud Charges Involving Motor Vehicle Titles

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FOR IMMEDIATE RELEASE November 17, 2014 St. Louis, MO – RANDALL HINTON was indicted in August on multiple fraud charges involving his scheme to alter and counterfeit documents in order to obtain state issued motor vehicle titles for himself and others.  Last week, twelve additional individuals were indicted in two separate indictments for their part in the use of the altered and counterfeited documents to obtain motor vehicle titles and motor vehicle title loans. According to the indictments, the schemes involving the defendants resulted in financial losses to the State of Missouri, financial institutions, title loan companies and individuals.  As the documents were often altered to decrease the value of the vehicles or to change the state of residence of the vehicle owners to addresses in Illinois, the owners of the vehicles were able to evade paying the appropriate taxes and license fees to the Department of Revenue for the State of Missouri.  When Hinton removed the names of financial institutions which had financed the purchases of the vehicles from legitimate titles, Hinton, Arronda Williams and others were able to sell the vehicles to innocent purchasers who were then unable to register the vehicles due to existing liens.  The final aspect of the scheme enabled individuals to use the altered documents to obtain motor vehicle title loans from companies located throughout the United States.  As a result of existing liens or the fact that the value of the vehicles was less than the defendants represented, the title loan companies experienced large financial losses. In a superseding indictment filed last week, Hinton, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of conspiracy to defraud, three felony counts of mail fraud, three felony counts of interstate transportation of falsely made securities, two felony counts of aggravated identity theft … Continue Reading

(Calgary) Dozens of victims caught in odometer roll back scam

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A Calgary man is facing charges in connection to a vehicle odometer roll back scam that defrauded more than 50 people. The Economic Crimes Unit was notified in January by a credit card company that a number of skimmed cards were being used for fraudulent purchases in Calgary. Police say the cards were being used to service vehicles and purchase vehicle parts and that the vehicles being serviced, were purchased at an auction house. Investigators say that the vehicles had high kilometres but they had been rolled back between purchase from the auction house and attempting to sell them online. “Investigation by the constables revealed that the offender was purchasing vehicles from the auction house at which time he would take those vehicles and have small repairs doe to them, maybe tune ups etc., change some parts out and take them to auto repair facilities where we believe that the odometers were rolled back. He would then list those vehicles on kijiji, Craig’s List, and the Auto Trader for sale and individuals would then come into negotiation with him to purchase those vehicles,” said S/Sgt. Kristie Verheul from the Economic Crimes Unit. They say that in one case, approximately 208,000 kilometres were rolled back. The suspect in the case purchased 54 vehicles over three years. Andriy Plysiun, 28, of Calgary, faces one count of fraud over $5,000. Police estimate the value of fraud is $300,000 and say that number is likely to increase as more victims are identified. Original Article : http://calgary.ctvnews.ca/dozens-of-victims-caught-in-odometer-roll-back-scam-1.2031958#ixzz3Krf3Hg5L

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(Raleigh) Man accused of rolling back car odometers

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A Raleigh man is accused of rolling back odometers on 20 cars and selling 15 of them. Flavio Oliveira, 39, faced a judge for the first time Wednesday afternoon on those charges and one more – not having a car dealer’s license. Neighbors of the address listed for Oliveira say he and his family moved out recently, but when they lived there cars were often lined up on the street. State Department of Motor Vehicles investigators lodged the charges against the Brazilian man who is now under an immigration detainer. It appears most of the cars were sold to individuals, but at least one ended up in an auction according to Gary Essick, who is a used Honda dealer in Thomasville, North Carolina. Essick tells ABC11 that he bought the car at auction from a well-respected new car dealer. He sold the car and was shocked when DMV investigators showed up on his doorstep weeks later asking about it. “It is a big mess because we, you know, after we sold the car you’ve got to think back if you were, if you were sold a car and four to six months down the road you were told that you had to return it immediately for a possible fraudulent odometer statement, you know, it’s going to upset the customer,” said Essick. DMV officials say Oliveira was doing business as Vista Auto Brokers on Kirkland Road in Raleigh. They ask that anyone who bought a car from him and thinks their odometer may have been rolled back to contact them. Original article: http://abc11.com/automotive/man-accused-of-rolling-back-car-odometers/303056/

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Lebanon Car Dealer Indicted For Fraudulent Titles, Falsified Mileage On Dozens Of Vehicles

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Nick Humphrey FOR IMMEDIATE RELEASE September 5, 2014 SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., automobile dealer has been indicted by a federal grand jury for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles. Kenneth W. Smith, 60, of Lebanon, was charged in a seven-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Aug. 26, 2014. That indictment has been unsealed and made public upon Smith’s arrest and initial court appearance. Smith operates Cars Unlimited in Lebanon. According to today’s indictment, Smith obtained fraudulent replacement titles for dozens of vehicles that were sold by Cars Unlimited between February 2010 and Nov. 7, 2011. Smith (operating through Cars Unlimited) allegedly applied for and received 54 replacement titles from the state of Missouri, each of which underreported the vehicle’s actual mileage between 95,000 and 209,000 miles. Smith allegedly resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for an aggregate total of approximately $346,450. Beginning in February 2010, when Smith purchased vehicles (through Cars Unlimited) at auto auctions, the vehicle titles he received showed each vehicle’s actual mileage. After purchasing a vehicle, Smith allegedly submitted an “Application for Missouri Title and License” seeking a replacement title for the vehicle. Although he sought a replacement title, the indictment says, he in fact possessed the original title for the vehicle. In each of those instances, Smith allegedly forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited. The federal indictment charges Smith with seven counts of mail … Continue Reading