Category Archives: Odometer Fraud Statistics

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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Former Auto Body Repair Shop Owner Sentenced for Role in Odometer and Title Fraud Scheme

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A Lawrenceville, Georgia man was sentenced in Norfolk, Virginia for his role in an odometer tampering and title fraud scheme, the Justice Department announced today. Paul Robinson, 38, was sentenced to serve 37 months in prison, followed by three years of supervised release by Judge Robert G. Doumar in the Eastern District of Virginia. Judge Doumar also ordered Robinson to pay $320,797.82 in restitution to victims who purchased vehicles with rolled back odometers. In February, Robinson pleaded guilty to one count of conspiracy to commit odometer tamping and securities fraud. Robinson, who formerly owned Affordable Auto Body Repair in Chesapeake, Virginia, admitted that he purchased high mileage vehicles, and that he, or someone acting at his direction, altered the vehicles’ odometers to reflect a fraudulent low mileage reading. Robinson and his co-conspirators then acquired Virginia motor vehicle titles with false, low mileage odometer readings. Those titles were used to sell the vehicles to unsuspecting purchasers. “Not only does odometer fraud result in consumers paying more for their vehicles and having higher repair costs, there are significant safety risks in unknowingly driving high mileage vehicles,” said Acting Assistant Attorney Chad A. Readler of the Justice Department’s Civil Division. “We are committed to protecting consumers by prosecuting individuals who engage in these schemes.” From 2012 to 2014, Robinson and his co-conspirators tampered with odometers and secured fraudulent motor vehicle titles for more than 100 vehicles. At times, the mileage readings on the altered odometers and fraudulent titles were 150,000 miles less than the vehicles’ actual mileage. One of Robinson’s co-conspirators, Steven Bazemore, a former title clerk who assisted Robinson with securing fraudulent motor vehicles, previously pleaded guilty to conspiracy to commit securities fraud.  On Sept. 22, 2016, Bazemore was sentenced to five years of probation, with the first year as home detention, … Continue Reading

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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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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Feds: Chesapeake car dealership rolled back at least 76 odometers, secured doctored titles

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A Chesapeake used-car dealership rolled back odometers in at least 76 vehicles, some of them by more than 100,000 miles, federal prosecutors allege in court documents. But state and federal officials declined this week to identify the business in question, citing an ongoing investigation involving the Virginia Department of Motor Vehicles and the U.S. Department of Justice. They said the only charges filed so far in connection with the alleged conspiracy involve a former employee of the city of Norfolk who they believe helped cover up the scheme. A DMV spokeswoman confirmed the dealership is “no longer open.” She added that her department’s standard procedure is “to make efforts to notify possible victims of suspected odometer fraud.” William Childress, the executive director of the board tasked with regulating the state’s new- and used-car dealerships, said he had not heard about the case and couldn’t comment. But he added that 76 incidents of odometer fraud linked to one dealership would be a “huge deal.” Steven Bazemore, 33, of Virginia Beach is expected to plead guilty May 26 in U.S. District Court in Norfolk to one count of conspiracy to commit securities fraud. Carteia Basnight, Bazemore’s attorney, did not return calls or emails seeking comment. According to court documents, Bazemore helped the unidentified business obtain falsified vehicle titles while working at a DMV Select branch in Norfolk. The scheme stretched from about January 2010 through September 2013, court documents said. Lori Crouch, a Norfolk city spokeswoman, said Bazemore worked for the city from Sept. 28, 2007, through Sept. 20, 2013. She declined to say whether he was fired or he quit. While working at the DMV Select branch, Bazemore was supposed to help customers register their vehicles and obtain Virginia motor vehicle titles, among other things. Court documents said the dealership’s owner … Continue Reading

Road Warrior: Low miles? Used car may be too good to be true

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Hardly anybody I know pays much attention to the odometer reading when buying a used car — unless, of course, it’s exceptionally high. After all, low mileage is usually the main qualifier when buying a pre-owned vehicle because it suggests the two of you will likely enjoy a few more good years before it gives you serious trouble. But judging by an arrest for odometer fraud in South Hackensack a week ago, ignoring a low-mileage reading might mark the beginning of serious trouble. “Odometer fraud? How’d they do that?” said Sal, an otherwise astute car owner I know from Barnegat. Like me, Sal thought rolling back odometers was the kind of crime that all but disappeared when computers were introduced in most cars around the end of the 20th century. Those of us who began driving when hood ornaments were still popular remember how amateur mechanics would break into the odometer housing behind the dashboard and roll back the miles by hand. Those days are long gone. And so is the housing, said Robert Foster, an officer in a consortium of state investigators called the National Odometer and Title Fraud Enforcement Association. “It’s easier to do now than it was before computerization,” said Foster. “With the right kind of knowledge and software, a mechanic can get into the onboard computer and reset the mileage to anything he wants.” Theoretically, it doesn’t always require a master mechanic to do this dirty work. “Diagnostic and computerized equipment can be purchased online,” said Maureen Parenta, a spokeswoman for the Bergen County Prosecutor’s Office. “And there are how-to blogs and Internet videos” that can easily be accessed. In the South Hackensack case, Alon Levin, owner of HQ Custom Design, was charged for allegedly using diagnostic equipment to access vehicle computers and lower odometer readings … Continue Reading

Feds: Chesapeake car dealership rolled back at least 76 odometers, secured doctored titles

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A Chesapeake used-car dealership rolled back odometers in at least 76 vehicles, some of them by more than 100,000 miles, federal prosecutors allege in court documents. But state and federal officials declined this week to identify the business in question, citing an ongoing investigation involving the Virginia Department of Motor Vehicles and the U.S. Department of Justice. They said the only charges filed so far in connection with the alleged conspiracy involve a former employee of the city of Norfolk who they believe helped cover up the scheme. A DMV spokeswoman confirmed the dealership is “no longer open.” She added that her department’s standard procedure is “to make efforts to notify possible victims of suspected odometer fraud.” William Childress, the executive director of the board tasked with regulating the state’s new- and used-car dealerships, said he had not heard about the case and couldn’t comment. But he added that 76 incidents of odometer fraud linked to one dealership would be a “huge deal.” Steven Bazemore, 33, of Virginia Beach is expected to plead guilty May 26 in U.S. District Court in Norfolk to one count of conspiracy to commit securities fraud. Carteia Basnight, Bazemore’s attorney, did not return calls or emails seeking comment. According to court documents, Bazemore helped the unidentified business obtain falsified vehicle titles while working at a DMV Select branch in Norfolk. The scheme stretched from about January 2010 through September 2013, court documents said. Lori Crouch, a Norfolk city spokeswoman, said Bazemore worked for the city from Sept. 28, 2007, through Sept. 20, 2013. She declined to say whether he was fired or he quit. While working at the DMV Select branch, Bazemore was supposed to help customers register their vehicles and obtain Virginia motor vehicle titles, among other things. Court documents said the dealership’s owner … Continue Reading