Category Archives: Topics

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

Five men charged for allegedly winding back odometers in used cars

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FIVE men accused of winding back the odometers in high-end second-hand cars which they planned to offer for sale have been ordered to appear in court in June. Serious Crime Task Force officers arrested the men after raids on six Adelaide properties, where 23 cars — including four Mercedes, four BMWs, four Holdens, three Toyotas, a Range Rover and a Volvo — computer equipment, odometer manipulation equipment and cash were seized. Five firearms and ammunition were also claimed by police in a joint investigation with Consumer and Business Services officers, which began in February. A 22-year-old man, of Colonel Light Gardens, a Kingswood man, 63, a Prospect, man, 66, a Greenwith man, 66, and a Parafield Gardens man, 65, were arrested and charged with conspiracy to defraud and participating in a criminal organisation. Police have laid 20 charges but said the inquiry was continuing. Further charges are expected. The men were granted police bail to appear in the Adelaide Magistrates Court on June 27. Police say the investigation uncovered odometer tampering offences by licensed and unlicensed used car dealers. “(It is) a practice commonly referred to as odometer fraud, winding back or clocking,’’ Detective Chief Inspector John Gerlach said. “This practice is carried out in order to deceive purchasers about a vehicle’s true mileage and value in order to obtain an increased profit.” Any cars or other seized equipment deemed to be the proceeds of crime would be confiscated, Det Chief-Insp Gerlach said. Police also advised prospective car buyers could protect themselves from this type of offending by comparing an odometer reading against available vehicle records, including service records, safety certificates, log books or previous sales contracts. Also, they suggested obtaining a professional car inspection by the RAA or motor trade association, be cautious of vehicles that are significantly underpriced … Continue Reading

Patrick Wayne Davis booked in Knox County on odometer fraud and identity theft charges

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CHATTANOOGA, TN — Following an investigation by the Tennessee Highway Patrol’s Criminal Investigation Division (CID) Patrick Wayne Davis was arrested for odometer fraud, identity theft, and felony theft on Tuesday, March 11 in Knoxville. Davis allegedly altered the odometer of a 2004 Honda Accord over 120,000 miles. He then fraudulently advertised the vehicle on “Craigslist “as a low mileage vehicle and subsequently sold it at a much higher price. This case stemmed from a complaint taken by the Bradley County Sheriff’s Office in Cleveland, Tenn. Bradley County then requested the assistance of the Tennessee Highway Patrol. THP Sergeant Thomas Clower, working with the Bradley County Sheriff’s Office, was able to identify Davis as a suspect in their initial investigation. They discovered that Davis illegally acted as the original owner of the Honda by taking the name of a man from Michigan. Agents with the Highway Patrol’s CID also located physical evidence in the Honda Accord. On Thursday, March 13, Sergeant Clower and THP Interdiction Plus Sergeant Greg Roberts located Mr. Davis in Knoxville. Davis was arrested on odometer fraud, theft between $1,000 to $10,000 and identity theft. He was booked in the Knox County Jail. A court date will be set for the Knox County Criminal Court. The Tennessee Department of Safety and Homeland Security’s (www.TN.Gov/safety) mission is to ensure that our state is a safe, secure place in which to live, work and travel; enforce the law with integrity; and provide customer-focused services professionally and efficiently. Original Article: http://www.knoxvilledailysun.com/news/2014/march/patrick-wayne-davis-arrested.html 

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Arizona Attorney General sues car rental companies over fraud complaints

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By Mike Sunnucks  –  Senior Reporter, Phoenix Business Journal Arizona Attorney General Tom Horne has filed a consumer fraud lawsuit against a five affiliated car rental companies after receiving more than 150 complaints about service and pricing. Horne filed the lawsuit against Saban’s Rent-A-Car LLC, DS Rentco Inc. and A-AAAble Rental Ltd. The Attorney General’s Office said those companies have been doing business as Phoenix Car Rental and Saban’s Rent a Car. The Attorney General’s Office said the companies are owned by or affiliated with Dennis N. Saban. Calls to Phoenix Car Rental and Saban’s were answered by the same person who said the former was not affiliated with Saban and then said the latter was under new management. He declined further comment. The Attorney General’s Office said it sent an undercover agent in to pose as a customer. The agent claims he was overcharged, denied a copy of the rental agreement and was falsely told he would be arrested if he drove outside the Phoenix area because of specially coded licenses plates. Prosecutors also allege the car’s odometer reading was false. “Many customers complained about this businesses failure to disclose additional fees to renters, and stated that Mr. Saban became abusive when they inquired about extra charges added at the end of the rental.” Horne said. Original Article: http://www.bizjournals.com/phoenix/news/2014/03/05/arizona-attorney-general-sues-car.html

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[CA] Fraudsters using Internet to bait high-end car buyers

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Online fraudsters are going upscale and targeting unsuspecting buyers of newer-model and luxury cars, the Ontario Motor Vehicle Industry Council warned Friday. “This represents a change in strategy by curbsiders and fraudsters,” said Terry O’Keefe, spokesman for OMVIC.  “Curbsiders, unlicensed dealers who usually pose as private sellers, used to target buyers of inexpensive economy vehicles. Now,  we’re seeing a shift towards newer and high-end vehicles such as Mercedes, BMW, Lexus, and even newer-model pick-ups, which command higher prices and higher profit margins. Unfortunately, just as curbsiders commonly misrepresent themselves, they also misrepresent the vehicles they sell, which are often insurance write-offs, accident-damaged or odometer-tampered.” O’Keefe also said he knows of six Ontario residents who lost a total of about $250,000 to phoney websites claiming to selling luxury cars such as Ferraris and Corvettes. Car buyers have to be doubly vigilant: lurking in online classifieds are not only curbsiders, but out-right fraud artists operating fictitious dealerships supposedly based in the U.S, said O’Keefe.  These two trends are converging when it comes to car-buying rip-offs, he said. Residents of border cities, such asWindsor, need to be extra careful as they are accustomed to shopping across the border, said O’Keefe. “Consumers should understand they are only protected byOntario’s consumer protection laws when they buy from an OMVIC-registered dealer,” added O’Keefe. “If they buy privately or outside the province and something goes wrong, OMVIC can’t help.” These fraudsters target Canadians by advertising in Canadian online marketplaces, offering high-end and exotic vehicles at attractive prices, he explained.  “The fake dealerships had polished websites and phony reviews for the dealerships on numerous other websites,” he said. “Unfortunately neither the dealerships nor the cars they purported to offer existed. We know of numerous victims who lost tens of thousands of dollars each.” These online techniques persuade “even … Continue Reading

[UK] Trainee solicitor guilty of car clocking fraud

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A trainee solicitor has been found guilty of being part of a car clocking ring which generated thousands of pounds. Karmjit Sohal, aged 24, allowed thousands of pounds in cash to pass through her bank account to trade vehicles in the racket which also involved her brother Inderjit Singh Sohal and a cousin called Jatinder Sandher. The operation was based at Enzo Motors, inGreat Bridge Street, WestBromwich, and Netherton Motors, inHalesowen Road, Netherton. Vehicles were bought and sold days later with thousands of pounds added to the price and up to 144,000-miles removed from the odometer reading between December 2009 and February 2011, Wolverhampton Crown Court heard. Sohal had claimed she was ‘too busy studying law’ to be involved but jurors unanimously found her guilty after spending just under an hour and a half deliberating at the end of a four day trial yesterday afternoon. The jury of nine women and three men returned guilt verdicts on two charges of conspiracy to defraud. Judge Mark Eades asked the jury to deliver a verdict of not guilty on a third charge of converting criminal property after prosecutors offered no evidence. Inderjit Singh Sohal and Jatinder Sandher along with two others, Sundeep and Pardeep Shinh – have already admitted their involvement in the racket. The court previously heard police officers seized £10,000 in cash in a raid on Karmjit Sohal’s family home in Willenhall from inside a safe in the garage which also contained paperwork. However during interview with trading standards officials she claimed she withdrew the cash over fears it could be stolen from her account if she lost her debit card . TheKeeleUniversitygraduate had also denied knowledge of some transactions on her debit card, including a sum of £2,071 paid at an auction in Wednesbury for a W-reg Mercedes C220. … Continue Reading

Insurance fraud mastermind sent to jail for 4 years

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BY LORRAINE NICKEL GLOBAL NEWS  It’s believed Manitoba Public Insurance was defrauded of more than $800,000. Global News/File A man considered the mastermind of the largest defrauding of Manitoba Public Insurance in history is going to jail. Quincy Adurogboye, 33, of Winnipeg, pleaded guilty and was convicted of eight counts of fraud in what police called Project Rollback in 2009. Wednesday, a judge sentenced him to four years behind bars and ordered him to pay back $150,000 to MPI, only a portion of what he fraudulently received from the corporation. About 40 people were arrested and charged for their involvement in an elaborate scheme to defraud the insurance company by rolling back the odometer readings of recently purchased vehicles, staging collisions in Winnipeg and then reporting the vehicles as stolen. It’s believed the scheme cost MPI more than $800,000. “This crime is extraordinary,” said Justice Chris Martin. Martin also sentenced Norm Beardy, 44, to an 18-month conditional sentence to be served in the community and 150 hours of community service. Beardy was ordered to pay back $8,000 to MPI, only 10 per cent of the amount he was involved in scamming. Original Article: http://globalnews.ca/news/892250/insurance-fraud-mastermind-sent-to-jail-for-4-years/

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Mishawaka car dealer charged with odometer fraud

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A Mishawaka car dealer is arrested and accused of rolling back the odometers. Adame Scott, 28, was arrested on Wednesday and charged Thursday with two counts of odometer fraud. His mechanic told police he was ordered to roll back the odometers. A day after the search warrant was executed Scott’s Auto Sales was closed. Police seized several odometers, five cars and paperwork with customer names to hopefully contact other victims. It’s been in business for about a year. Police started getting several complaints about the business. Lieutant Regis Thimons from the St. Joseph County Police says, “The biggest concern we have as police officers is the danger that it puts the public in, when they are driving a vehicle that has only been road worthy for 80 thousand miles when it is actually been on the road 252 thousand, that’s a big discrepancy.” One woman says she bought a Chevy Impala in April. She says she paid 45-hundred dollars for the Impala that had 80 thousand miles. After doing some digging she found out it was actually scrapped for 400 hundred dollars with 250 some thousand miles. Police don’t know how many cars were sold with the incorrect odometer readings so they are asking people to call them. You can call St. Joseph County Police at (574) 217 – 5150. Original Article: http://www.wndu.com/news/headlines/Mishawaka-car-dealer-charged-with-odometer-fraud-215154871.html?ref=871

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Buying A Used Car? Check For Odometer Fraud

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Buying a used car is already risky business, and this story of fraud in New York will have you double checking your paperwork.Matin Jarmuz used Craigslist.com to sell his 1992 Toyota Camry. According to Jarmuz’s Craigslist post, at 21-years-old and 200,000 miles the Camry still had a smooth, quite ride. He sold the car quickly to Chris Sciolino for $900 cash. Jarmuz thought he had made a good deal, until other Craigslist users alerted him that his old Camry was up for sale again by the same man he just sold it to, only this time listed at $1,800 and with 79,000 miles. Odometer fraud is a serious problem in the U.S. In a 2002 study the National Highway Traffic Safety Administration determined that close to half a million cars are sold each year with false odometer readings, at a cost of more than of $1 billion dollars annually. Since the study was done, the Office of Odometer Fraud Investigations has seen an escalation in cases. Fixing an odometer is a federal crime, one made much easier on newer cars where, instead of cracking open a dashboard, sellers just need to hack the onboard computer. How do you protect yourself? First, always check the paperwork. Titles are required by law to list the mileage of a vehicle every time it changes hands, although cars older then 10 years don’t have this requirement. For older cars, checking with a cars history with sites like CarFax.com can revel a car’s true mileage. Also check the wear on the pedals and ignition of the car, if it seems more worn down then the miles suggest you could be looking at fraud. When WIVB 4 called Sciolino playing the part of an interested buyer they found another savvy shopper had already called him on the mileage discrepancy. When the reporter then asked to see the title the car was suddenly … Continue Reading

Woman says Milton Motor wasn’t honest about vehicle’s condition

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CHARLESTON – Milton Motor Used Auto Sales LLC is being sued after a woman claims it was not honest with her about the condition of a vehicle she purchased. On May 2, 2012, Patricia Davis entered into a motor vehicle purchase contract with the defendant for the purchase of a 2001 Ford Explorer, according to a complaint filed June 21 in Kanawha Circuit Court. Davis claims she specifically asked the defendant about the quality, durability and value of the vehicle and was assured the vehicle was a good, dependable car. The defendant represented the vehicle had no history or prior problems or damage when in fact, the vehicle had been previously extensively damaged, including apparent damage resulting from submersion in flood waters or other waters and the dealer had actual knowledge of the damage or should have discovered the damage upon reasonable inspection, according to the suit. Davis claims the defendant failed and/or omitted to inform her the mileage indicated on the vehicle’s odometer was inaccurate and failed and/or omitted to delivery any written odometer statement, as required by law. The defendant was negligent and its conduct constituted general unfair or deceptive acts or practices, in violation of West Virginia code, according to the suit. Davis is seeking compensatory and punitive damages with pre- and post-judgment interest. She is being represented by Cameron S. McKinney and David L. Grubb of the Grubb Law Group. The case has been assigned to Circuit Judge Charles E. King. Kanawha Circuit Court case number: 13-C-1169 Original Article: http://wvrecord.com/news/261179-woman-says-milton-motor-wasnt-honest-about-vehicles-condition

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