Category Archives: Convictions

U.S. Dept Justice: Used Motor Vehicle Dealers Indicted in Philadelphia for Odometer Tampering

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A federal grand jury in Philadelphia unsealed an indictment yesterday charging Kyle Novitsky, 45, and Judith Aloe, 52, both of North Miami Beach, Fla., with making false odometer statements, securities fraud and conspiracy to commit these offenses, the Justice Department announced today. According to the indictment, as early as 2004, and through at least 2010, the defendants devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 247 vehicles they sold. As part of the scheme, the indictment charges that Novitsky and Aloe purchased high-mileage, used motor vehicles in Florida, California and elsewhere from a national vehicle leasing company.   The defendants are charged with conspiring to alter the odometers in these vehicles to reflect false, lower mileage. The indictment alleges that Novitsky and Aloe then fraudulently altered the motor vehicle titles and sales documentation associated with these vehicles to reflect the false, lower mileage. As a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting this false, low er mileage, which the defendants knew to be untrue. Novitsky and Aloe subsequently sold the motor vehicles at wholesale automobile auctions in Manheim, Pa., and elsewhere, and provided to the buyers Pennsylvania titles bearing the lower false mileage. The indictment alleges that in some instances, the true mileage of the vehicle was greater than 100,000 miles more than what the title indicated, and as a result of selling the vehicles with false, lower mileages, the defendants received higher sales prices for the vehicles they sold. “Mileage information is important for consumers to assess the value and safety of the vehicles they purchase,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice.   “Automobile purchases are one of the biggest investments consumers make, and false odometer statements can cause the buyers … Continue Reading

Raleigh man pleads guilty to odometer fraud

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A North Raleigh man pleaded guilty Thursday to tampering with the odometer of cars he sold and charging buyers far more than the vehicles were really worth.  Francis Tendayi Marimo, 39, was arrested in February 2012 and charged with change of mileage violations, obtaining property by false pretenses and acting as a dealer without a license. He will be sentenced some time in September. Federal agents started investigating Marimo after local car buyers realized the mileage on their vehicles wasn’t right. He pleaded guilty to two instances, one in which he rolled back the odometer by 100,000 miles. Investigators have said they believe he was involved in many more cases between 2008 and 2012. The U.S. Department of Transportation recommends these tips for buyers of used cars: Ask to see the title and compare the mileage on it with the vehicle’s odometer. Examine the title closely if the mileage notation seems obscured or is not easy to read. Compare the mileage on the odometer with the mileage on the vehicle’s maintenance or inspection records. Search for oil change and maintenance stickers on windows or door frames, in the glove box or under the hood. Examine the tires. If the odometer on the car shows 20,000 or less, it should have the original tires. Look at the wear and tear on the vehicle – especially the gas, brake and clutch pedals – to be sure it seems consistent with and appropriate for the number of miles displayed on the odometer. Request a Carfax Vehicle History Report to check for odometer discrepancies in the vehicle’s history. If the seller does not have a vehicle history report, use the car’s VIN (Vehicle Identification Number) to order a Carfax vehicle history report online.

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High-Tech Thieves Use New Gadget To Gain Keyless Access To Vehicles In Long Beach

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LONG BEACH (CBSLA.com) — Police are asking for the public’s help in identifying three tech-savvy criminals wanted for a series of car burglaries in which they used an unknown device to gain keyless entry to vehicles. The men are accused of breaking into seven vehicles in an East Long Beach neighborhood on the night of Feb. 26, according to Long Beach police. The suspects were caught on surveillance using small handled devices that caused “the vehicle’s dome light to come on and doors to unlock,” Det. Joseph Starbird said in a news release. FULL SURVEILLANCE VIDEO Police believe there could be several other victims who were also burglarized without their knowledge. The LBPD’s Auto Theft Detail has been working with law enforcement agencies nationally and internationally, as well as vehicle manufacturers, to identify the type of technology being used. Thus far, no agency or company has been able to identify the device. “This is a situation where technology is working against us, making our job much more challenging at a time where resources are already strained. Just as law enforcement tactics evolve, so does the criminal element’s and we need the community’s involvement more so than ever,” stated Chief Jim McDonnell. Police recommend residents remove valuables and extra keys from vehicles and install motion lights outside of their homes. Anyone with information on the suspects or their identity should contact Det. Starbird at (562)570-7362. Anonymous tips may be submitted by calling 1-800-222-TIPS (8477), texting TIPLA plus your tip to CRIMES (274637), or visiting http://www.lacrimestoppers.org. Orignal Article: http://losangeles.cbslocal.com/2013/04/04/high-tech-thiefs-use-new-gadget-to-gain-keyless-access-to-vehicles-in-long-beach/

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U.S. Dept Justice: NC Man Charged w Odometer Fraud

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Friday, April 12, 2013 North Carolina Man Charged in Odometer Tampering Scheme In an information made public today, the United States charged Francis Marimo, of Raleigh, N.C., with two counts of odometer tampering. The information, filed in U.S. District Court for the Eastern District of North Carolina on April 10, 2013, alleges that from 2008 through 2012, Marimo fraudulently caused odometers in used motor vehicles to be altered to reflect false, low mileages.   According to the Information, Marimo purchased used vehicles primarily through online advertisements, replaced the existing odometers with odometers showing lower mileages, and then sold the vehicles to consumers while representing the low mileages as accurate.   One of the vehicles described in the Information was “rolled back” more than 100,000 miles. “Consumers rely on mileage readings to determine the value and safety of used vehicles,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles.   We will continue to prosecute these schemes wherever we find them.” The North Carolina Division of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation investigated this case.  The case is being prosecuted by the Justice Department’s Consumer Protection Branch. The charges in the information are only allegations, and the defendant is presumed innocent unless and until proven guilty. Posted by Gary Mitchell

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Springfield cops say they’ve busted national crime ring involving stolen trailers

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SPRINGFIELD, Mo — A national crime ring – busted. Investigators say a trailer theft operation here in the Ozarks reached far across the USA. Detectives say South Valley Trailer, LLC, located at 1219 E. Division Street, would steal trailers, change the vin numbers, and then sell them out of state – as far away as North Dakota. The bust dates back to December 2012, when several trailers were reported stolen in Springfield; security cameras captured some of them. Someone spotted a missing trailer at South Valley a few days later, prompting a police investigation. Sales records showed transports to a company in North Dakota, who posted pictures of trailers of sale. The pictures matched the descriptions of the stolen property. Officers say details helped crack the case. “People need to make sure they know serial numbers and the info of the trailers and keep them secure,” Lt. Kevin Grizzell tells KSPR News. “Keep them locked up and chain them. The harder you make it to steal, the less likely it is to be stolen.” Detectives went back to the company’s offices last month and took several hard drives and computers. Officers think files saved on those drives will reveal the whole extent of the ring. Grizzell says he expects prosecutors to file charges against South Valley’s owners later this month. One owner already has a  long criminal record, including two convictions involving burglary and stealing. Springfield police officers served a second search warrant last month on a company called South Valley Trailers. Original article: http://www.kspr.com/news/kspr-springfield-cops-say-theyve-busted-national-crime-ring-20130401,0,344630.story

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City cop, 19-year-old charged after odometers allegedly altered Scam bit luxury-car buyers

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By: Mike McIntyre Posted: 04/5/2013 1:00 AM   MIKE DEAL / WINNIPEG FREE PRESSWinnipeg police Sgt. Richard Sierhuis in the 1969 Chevelle SS 396 he restored. He is now charged with ripping off customers of luxury vehicles he sold them and is on administrative leave from the police service. A veteran Winnipeg police officer was allegedly running an international luxury-vehicle scam that duped several victims, including a prominent city defence lawyer, out of thousands of dollars. Justice sources and court documents reveal extensive details of the case, which came to light last year and only became public this week. The police have released limited information other than confirming Sgt. Richard Sierhuis is facing numerous fraud-related charges. Sierhuis, 47, once worked with the Winnipeg Police Service’s professional standards unit, the department that began investigating his conduct last fall and authorized his arrest in late March. Most recently, he has been posted in the North End. He is now on administrative leave pending further review of his job status. Sierhuis made his first court appearance Wednesday, also the day when police issued a news release announcing his arrest. The case has been adjourned until April 24 and Sierhuis remains free on bail. None of the allegations has been proven and he is presumed innocent. Police have also arrested a 19-year-old co-accused on many of the offences. He is listed in court documents as a car salesman. The Free Press is not identifying him because some of his charges are youth-related, dating back to 2011 when he was 17. Five victims came forward to police last year claiming they were ripped off trying to purchase high-end vehicles from Sierhuis, a noted local car enthusiast. It’s believed most, if not all, were responding to advertisements on Kijiji, a popular online sales website. Sierhuis and the teen … Continue Reading

Baton Rouge, Louisiana, Used Car Dealer Sentenced to Prison for Odometer Tampering Fraud Scheme

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    Beau Michael Guidry of Baton Rouge, La., was sentenced today in connection with an odometer tampering scheme that defrauded victims in and around Louisiana, the Justice Department announced.   U.S. District Judge for the Middle District of Louisiana James J. Brady sentenced Guidry to a term of 20 months in prison and a term of one year of supervised release during which he cannot be involved in the sale of motor vehicles. In addition, the court ordered Guidry to pay $72,805.51 in restitution to the victims of his crimes. Guidry purchased high-mileage motor vehicles via eBay and wholesale automobile auctions in Louisiana, Mississippi and Texas.   The vehicles’ odometers were then rolled back as much as 147,000 miles and resold via Guidry’s used vehicle company, Affordable Imports in Denham Springs, La., or through eBay to unsuspecting purchasers.   Guidry exclusively rolled back vehicles that were more than 10 years old when he sold them Because of the age of the cars, Guidry was not required to sign a disclosure certifying the mileage on those 10-year old vehicles as accurate.   However, each time he altered an odometer with intent to change the mileage on the odometer, he violated federal law. “Odometer tampering preys mostly on those in society who can least afford to be defrauded,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “In these tough economic times, we will take strong action against anyone who defrauds consumers and jeopardizes the safety of our roads and highways.” Special Agent Wendell Espeland of The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) investigated this case.   The case was prosecuted by Justice Department trial attorney David Sullivan of the Civil Division’s Consumer Protection Branch. Posted by Holly Merz

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Indian Trail Man Pleads Guilty to Trafficking in Counterfeit Airbags

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CHARLOTTE, N.C. – Igor Borodin, 27, of Indian Trail, N.C. pleaded guilty today in U.S. District Court in Charlotte to trafficking in counterfeit airbags, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Borodin also pleaded guilty to delivering and causing to be delivered hazardous material, that being airbags, by air commerce in violation of rules and regulations prescribed by the Secretary of Transportation. U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), Region IV. On August 21, 2012, a federal criminal indictment charged Borodin with one count of trafficking and attempting to traffic in counterfeit airbags bearing the registered trademarks of automobile  manufacturers, and one count of delivering and causing to be delivered hazardous materials (airbags) to air carriers for transportation in air commerce. According to filed court documents and related court proceedings, Borodin is part-owner of Krugger Auto, located in Charlotte. On August 16, 2012, law enforcement agents with ICE-HSI’s Charlotte and Chattanooga, Tenn. offices and DOT-OIG agents executed federal search warrants at Krugger Auto and Borodin’s residence in Indian Trail. Court records show that while executing the search warrants, agents recovered 99 counterfeit airbags from Borodin’s business and 1,514 counterfeit airbags from his residence. Court records also show that Borodin had purchased the counterfeit airbags from China, which he then resold through eBay. According to filed documents and court proceedings, the counterfeit airbag shipments ordered by Borodin did not display the legally-required hazardous material warnings when the shipments were transported in air commerce from China to the United States. The Department of … Continue Reading

Alleged Trafficker of Counterfeit Automotive Accessories Indicted in Virginia

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  WASHINGTON – An alleged trafficker of counterfeit automotive accessories was indicted yesterday by a federal grand jury in the Eastern District of Virginia for allegedly participating in a conspiracy to sell to unsuspecting U.S. consumers more than $3 million worth of counterfeit General Motors (GM) and Bavarian Motor Works (BMW) automotive diagnostic devices and other automotive equipment, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Assistant Director Ronald T. Hosko of the FBI’s Criminal Investigative Division and FBI Atlanta Special Agent In Charge Mark Guiliano announced today. Katiran Lee, 39, an Indonesian national who allegedly sold the counterfeit goods while he was living in Duluth, Ga., was charged with two counts of trafficking in counterfeit goods, four counts of wire fraud and one count of conspiracy to commit wire fraud. According to the indictment, from August 2008 through December 2011, Lee conspired with manufacturers in the People’s Republic of China (PRC) to sell automotive diagnostic devices bearing counterfeit GM and BMW marks to consumers in the United States. Such diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems. Lee allegedly advertised and sold the diagnostic devices on eBay and through his own website, and had the PRC manufacturers send counterfeit devices bearing unauthorized GM and BMW marks directly to his customers. According to the indictment, during this same period, Lee also advertised and sold over 35,000 counterfeit programmed keys and key fobs for vehicles produced by GM, BMW and numerous other automotive manufacturers, including Chrysler, Honda, Toyota, Audi, Mercedes Benz, Ford, Infiniti, Land Rover, Mazda, Mitsubishi, Nissan, Peugeot, Renault, Subaru, Suzuki, and Volkswagen. Lee allegedly programmed the keys himself and affixed counterfeit … Continue Reading

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Janesville Odometer Tampering A Janesville man faces multiple criminal charges for allegedly rolling back car odometers and then selling those vehicles. 60-year-old Jeff Hagen of “Jeff’s Auto Body” has been charged with 1 count of felony theft by swindle as well as 3 gross misdemeanor counts for reportedly tampering with car odometers to falsely increase vehicle value. Hagen denies the allegations, and is scheduled to make his initial appearance in court on November 27th. He faces up to 5 years in prison and a $10,000 fine. Original article: http://www.knuj.net/2012/10/janesville-odometer-tampering/

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