Category Archives: Odometer Fraud Statistics

Two Mississippi Men Plead Guilty in Odometer Fraud Scheme

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Two Long Beach, Mississippi, men pleaded guilty today for their roles in a long-running odometer tampering scheme, the Department of Justice announced. Oscar M. Baine, 41, pleaded guilty to one count of conspiracy to alter odometers and one count of odometer tampering. Jeffrey Lyn Savarese II, 35, pleaded guilty to one count of conspiracy to alter odometers. Both defendants appeared in federal court in Gulfport before U.S. District Judge Louis Guirola Jr. The court set sentencing hearings for both defendants for Oct. 17. As part of his plea agreement, Baine admitted that he purchased high-mileage vehicles from wholesale automobile auctions, dealerships, and individuals, and arranged to alter the vehicles’ odometers to reflect false, lower-mileage readings. Baine admitted that he paid Savarese and others to change or alter odometers at his used car lot in Gulfport. Baine then sold the rolled-back vehicles to unsuspecting consumers for inflated prices. Savarese admitted that he began altering odometers for Mississippi and Louisiana used-car dealers in 2011 and reset the odometers on at least 200 used vehicles for Baine. “The Department of Justice is committed to prosecuting auto dealers who defraud consumers by selling vehicles with unlawfully altered odometers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Consumers rely on mileage information to assess the value and safety of a vehicle, and that information must be accurate.” “These criminals put the public at risk by rolling back odometers and defrauding hundreds of people out of one of their biggest investments. I commend the investigators and prosecutors for bringing these criminals to justice and for protecting the public from further fraudulent acts by these two. We will remain vigilant as to these types of crimes and continue working to make our roads and communities safer for everyone,” said Mike Hurst, U.S. … Continue Reading

State investigating odometer fraud complaint against business owned by Lee County deputy

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FORT MYERS, Fla. — A Lee County deputy who once campaigned for sheriff is on administrative leave, and now his business is under investigation by a state agency. James Didio ran for Lee County Sheriff in 2016. Fox 4 has learned that a customer of Didio’s used car business, Southwest Florida Motors in Fort Myers, claims that someone rolled back the odometer on a car they bought there. Last week, the Lee County Sheriff’s Office confirmed that Didio has been placed on administrative leave, but would not say why. Fox 4 found that a customer complained to the Better Business Bureau in March that a car purchased at Southwest Florida Motors showed an odometer reading of about 107,000 miles. The complaint states that “the car has over 160,000 miles, but shows 107,000 from having the odometer illegally changed.” The customer claims that the discrepancy was discovered by checking oil change records. In a response to the complaint, Southwest Florida Motors wrote, “The moment I was informed of a possible odometer fraud from years before I ever owned the vehicle, we did a complete AutoCheck Dealer VIN scan. The check came back ‘No odometer fraud found.’” The Florida Department of Highway Safety and Motor Vehicles is investigating the complaint, but the Lee County Sheriff’s Office will not confirm that is the reason for Didio’s administrative leave.. Didio could not be reached for comment on this story. Original Article: https://www.fox4now.com/news/local-news/state-investigating-odometer-fraud-complaint-against-business-owned-by-lee-county-deputy

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Owner of Powhatan auto electronics repair shop pleads guilty in federal odometer tampering case

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A Powhatan County man was convicted Monday for his role in a scheme that rolled back the odometers on more than 50 vehicles, fraudulently boosting the value of each one by as much as $10,000. Michael Carey Eubank, 52, who owns an automotive electronics repair shop in Powhatan, pleaded guilty to conspiracy to alter a motor vehicle odometer and faces up to five years in prison when sentenced Oct. 9 by U.S. District Judge John A. Gibney Jr. A two-page criminal charge filed June 10 alleged that Eubank’s company website advertised services that included “odometer re-programming or re-setting.” It also stated that, “Mileage proof [is] required, odometer tampering is a federal crime.” The charge only identified the company as “Company 1.” But Eubank told Gibney on Monday that his company is Advanced Auto Electronics and was formerly located in Midlothian. From September 2010 to June 2018, Eubank conspired with at least one other person to reset the odometers to false, lower readings. “Individuals brought vehicles, or vehicle instrument clusters containing odometers, to Company 1 and requested that Eubank change the odometers to lower mileage readings,” the government alleged. The only co-conspirator identified in court papers is Lawson Basnight, 49, of Norfolk, who pleaded guilty to the same charge last year and was sentenced to 18 months behind bars. Basnight was also ordered to pay more than $403,000 in restitution — the difference in price caused by the false readings plus, in some cases, unexpected repair costs — to more than 50 victims. Basnight admitted running the scam from September 2010 through October 2016. While the charging document against Eubank referred to multiple odometers, it only cited one specific case: On Feb. 25, 2016, Basnight brought a 2009 Ford F-150 with 165,000 miles on it and Eubank used an electronic tool … Continue Reading

News car odometer rolled back 45,000 miles by Denver-area business

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LITTLETON, Colo. — The U.S. Justice Department calls it “clocking”: intentionally rolling back an odometer to make a vehicle appear less used. Odometer rollback is “the single most common fraudulent issue in Colorado and nationwide.” That’s a bold statement made by one of this state’s top auto enforcement regulators. So, based on a tip from one of our viewers, the FOX31 Problem Solvers decided to take a closer look at a business which advertises “odometer correction.” Odo-Pro is a licensed business registered to the address of a corner house in Littleton. State records show its owner is Peter Petrov Rains. He sells parts and auto repair services, mostly through via mail. Odometer repair and adjustment is permitted in some instances under the federal law. However, “if the mileage on the odometer cannot remain the same as before the service, the odometer must be reset to zero.” What is not permitted is rolling miles on a vehicle backwards with the intent to defraud. Here’s part of the federal law which says so: 327.03 A person may not (2) disconnect, reset, alter, or have disconnected, reset, or altered, an odometer of a motor vehicle intending to change the mileage registered by the odometer; (3) with intent to defraud.. The FOX31 Problem Solvers tested to see if Odo-Pro would reduce the miles, no questions asked, on one of our old news cars: a 2005 Dodge Durango. We had a mechanic remove the odometer, which had 195,839 well-documented miles on it. The FOX31 investigative team then printed off a single-sheet form we found on Odo-Pro’s website. It’s said “Odometer Correction Form” at the top. We requested our odometer be programmed backwards — rolled back to 150, 839 — a 45,000-mile reduction. The form required us to acknowledge that “altering the odometer for personal gain is … Continue Reading

Digital rollbacks: Millions of cars have false mileage on odometers

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(InvestigateTV) – There’s a hidden danger on the roads – one that’s illegal and potentially putting families at risk: rolled-back odometers. Experts say vehicle odometers are easier than ever to roll back. “Our research shows there are now 1.6 million cars that are on roads across the country that have an odometer rolled back, and that’s costing consumers millions of dollars,” said Chris Basso, who works with Carfax, a company that provides vehicle history reports. In a demonstration with Carfax, an odometer on a 2006 Chevy Silverado with 230,323 miles was tampered with in less than 30 seconds. A technician with an inexpensive electronic device was able to erase nearly 100,000 miles of wear, tear and history, leaving the Silverado with 130,483 miles. Watch the video below to see a demonstration of an odometer rollback and hear how that affects the value of a vehicle. “You’re simply taking a device that hacks into the car’s computer. You could take 100,000 miles off a car and artificially inflate the value of it by thousands of dollars, and you’re ripping people off,” Basso said. Those rollbacks can be dangerous and expensive for consumers. “You’ve got older parts that you think the car has that could break down sooner than you expect,” Basso said. “If that car’s being driven and those parts break down, then not only are the passengers of that vehicle in possible danger, but everyone else on the road too.” Original Article (and more): https://www.nbc12.com/2019/04/25/digital-rollbacks-millions-cars-have-false-mileage-odometers/

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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

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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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

Norfolk man pleads guilty to rolling back odometers on at least 50 used cars, reselling for profit

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A Norfolk man conspired to roll back the odometers of more than 50 vehicles before selling them to used-car dealerships and others, according to court documents. Lawson W. Basnight, 47, pleaded guilty Thursday to the fraud – which resulted in $250,000 to $550,000 in losses. “He’s accepted responsibility and knows what he did was wrong,” Moody “Sonny” Stallings Jr., Basnight’s attorney, said after the plea hearing. He said his client expects to serve some time in jail and was ready to start his sentence Thursday, “but the judge talked him out of it.” A sentencing hearing is set for May 16 in U.S. District Court in Norfolk. Basnight faces a maximum of five years in prison. Prosecutors Jacqueline Blaesi-Freed and Elizabeth Yusi declined to comment. According to court documents, the scheme stretched from September 2010 through October 2016. Basnight worked with at least one other person to defraud vehicle purchasers into believing they were buying cars and trucks with significantly lower mileages than they actually had – prompting them to pay significantly more than they were actually worth. To conceal the scheme, Basnight would sometimes pose as a used-car dealer while buying the vehicles and give an alias, documents said. He would direct the sellers not to write their vehicle’s mileage on the title. He would then roll back the odometer and fill out the document with the false reading. After that, he or an acquaintance would apply for and secure a new title. Court documents reference the purchase in 2013 of a 2011 Jeep Grand Cherokee with at least 125,000 miles. An acquaintance of Basnight’s disconnected the odometer and rolled it back to indicate the vehicle had been driven only 12,954 miles. The Jeep was purchased for $19,000 and sold to a “major used car retailer” for about $30,000, … Continue Reading

Rolling back’ suspect accused of tampering with hundreds of vehicles

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  A Grand Prairie man is accused of rolling back odometers to hundreds of vehicles in Texas. Star-Telegram – Courtesy GRAND PRAIRIE Kenneth Rose was on a roll. But state and local authorities say they have stopped him, shutting down a major odometer fraud operation after a three-year investigation. Rose, 41, was in custody Wednesday, accused of rolling back odometers on hundreds of Texas vehicles. “The Texas Department of Motor Vehicles does not tolerate anyone ripping off Texas auto buyers,” said Whitney Brewster, Texas Department of Motor Vehicles director, in a Wednesday news release. “Mileage is a key factor that consumers use when deciding whether to buy a used vehicle. Tampering with an odometer to deceive a buyer is a serious crime that puts innocent Texans’ safety and finances at risk.” Rose was arrested earlier this month on a charge of tampering with an odometer. He also faces driving while intoxicated and obstructing highway passage charges, according to Tarrant County jail records. Odometer fraud is the disconnection, resetting or “rolling back” of a vehicle’s odometer with the intent to defraud. Rose is accused of having contacts with area used-car dealerships. Officials noted that buyers could pay hundreds or thousands of dollars more for a vehicle if an odometer has been rolled back. In addition, buyers may believe they have a low-mileage vehicle, when it’s actually one with serious safety issues. Officials with the Texas Department of Motor Vehicles will contact victims whose vehicles may have had their odometers rolled back. The case was investigated by the Tarrant County Regional Auto Crimes Task Force, the Tarrant County district attorney’s office, Fort Worth and Grand Prairie police, the Texas Department of Public Safety and the Texas Department of Motor Vehicles. Domingo Ramirez Jr.: 817-390-7763, @mingoramirezjr Buying tips Do a title check. Check vehicle history … Continue Reading