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San Jose Residents Plead Guilty To Wire Fraud Conspiracy In Craigslist Automobile Resale Fraud Scheme

Department of Justice U.S. Attorney’s Office Northern District of California FOR IMMEDIATE RELEASE Wednesday, October 27, 2021 Defendants Agree To Pay Between $935,813 and $1,109,885 in Restitution As Part Of Plea Agreements SAN FRANCISCO –Ramil Heydarov and Orkhan Aliyev pleaded guilty today to conspiracy charges related to a scheme to defraud purchasers of vehicles on the Craigslist website by rolling back the odometers on vehicles before reselling them, announced Acting United States Attorney Stephanie M. Hinds, Homeland Security Investigations Special Agent in Charge Tatum King, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The guilty pleas were accepted by the Honorable Susan Illston, Senior U.S. District Judge, and, along with the October 12, 2021, guilty plea of Seymur Khalilov, establishes that all three defendants charged in the case have now pleaded guilty to fraud conspiracy charges. According to the defendants’ plea agreements, from at least October 2017 through December 2020, Khalilov, 32; Heydarov, 31; and Aliyev, 32, all of San Jose, conspired to purchase high-mileage vehicles, roll back the odometers, and falsify documentation to make the vehicles appear newer. Specifically, the co-conspirators altered the odometers of numerous vehicles and altered registrations and titles, among other items, to fraudulently decrease the mileage readings of the vehicles and, thus, increase their sales value. The co-conspirators then posted advertisements of the vehicles on Craigslist to advertise the vehicles to victims who were not aware of the fraudulent alterations. Additionally, the defendants admitted using doctored driver’s licenses containing their photograph but the names of prior vehicle owners to facilitate the sale of these vehicles. The co-conspirators each acknowledged that the goal of the conspiracy was to sell vehicles to victims for an increased price based on the fraudulent odometer readings. According to the plea agreements, the co-conspirators sold at least … Continue Reading

Former Moline Businessman sentenced to 41 months in connection with scam to rollback odometers at used car dealership

Department of Justice U.S. Attorney’s Office Southern District of Iowa FOR IMMEDIATE RELEASE Friday, October 15, 2021 DAVENPORT, IA- On Tuesday, October 11, 2021, Bradley Shane McCorkle, age 51, formerly of Moline, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to 41 months in prison for conspiracy to commit wire fraud in connection with a scheme to alter and rollback odometer mileage on used cars purchased by his Moline car dealership, 4th Avenue Auto Sales, announced Acting United States Attorney Richard D. Westphal. McCorkle and his co-conspirators tampered with the mileage readings on more than 150 vehicles that were later sold to unsuspecting buyers. The defendants used “straw buyers” to purchase vehicles in their names to “wash” the titles and insulate McCorkle and 4th Avenue from the criminal conduct. McCorkle was also ordered to pay $85,204 in restitution, serve three years of supervised release following the period of imprisonment, and pay $100 to the Crime Victims’ Fund. The investigation was conducted by the Iowa Department of Transportation, United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

East Moline Businessman sentenced to 37 months in connection with scam to rollback odometers at used car dealership

U.S. Attorneys » Southern District of Iowa » News Department of Justice U.S. Attorney’s Office Southern District of Iowa FOR IMMEDIATE RELEASE Friday, October 15, 2021 DAVENPORT, IA- On Tuesday, October 11, 2021, Isaac Bell, age 34, of East Moline, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to 37 months in prison for conspiracy to commit wire fraud in connection with a scheme to alter and rollback odometer mileage on used cars purchased by his Moline car dealership, 4th Avenue Auto Sales, announced Acting United States Attorney Richard D. Westphal. McCorkle and his co-conspirators tampered with the mileage readings on more than 150 vehicles that were later sold to unsuspecting buyers. The defendants used “straw buyers” to purchase vehicles in their names to “wash” the titles and insulate Bell and 4th Avenue from the criminal conduct. Bell was ordered to pay $85,204 in restitution, serve three years of supervised release following the period of imprisonment, and pay $100 towards the Crime Victims’ Fund. The investigation was conducted by the Iowa Department of Transportation, Bureau of Investigation; United States Department of Transportation; National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation; and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

FOR IMMEDIATE RELEASE Tuesday, June 29, 2021 Used Car Dealer Sentenced to 60 Months in Prison for Odometer Tampering Scheme BROOKLYN, NY – Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by United States District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme, and ordered to pay $3,936,000 in restitution. The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud. Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General of the Justice Department’s Civil Division, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the sentence. “The sentence sends a warning that this Office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” stated Acting U.S. Attorney Kasulis. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.” “An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Boynton. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.” “Automobile sales stand as one of the pillars of the American economy requiring transparency and integrity,” stated Acting IRS-CI Special Agent-in-Charge Fattorusso. “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.” Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother … Continue Reading

Three San Jose Residents Charged With Conspiracy To Commit Wire Fraud In Automobile Resale Scheme

Department of Justice U.S. Attorney’s Office Northern District of California FOR IMMEDIATE RELEASE Wednesday, May 5, 2021 Defendants Allegedly Rolled Back Odometers on Vehicles Before Reselling Them At A Significant Profit on Craigslist SAN FRANCISCO – A criminal complaint was unsealed today in federal court charging Seymur Khalilov, Ramil Heydarov, and Orkhan Aliyev with conspiracy to commit wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Homeland Security Investigations Special Agent in Charge Tatum King, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. According to the complaint, between 2016 and the present, Khalilov, 32; Heydarov, 31; and Aliyev, 31, all of San Jose, conspired to purchase high-mileage vehicles, roll back the odometers, and falsify documentation to make the vehicles appear newer. The co-conspirators then allegedly sold the vehicles on Craigslist at significant profits. The complaint alleges defendants fraudulently sold at least a dozen vehicles in this way for a total of at least $300,000. In addition, the complaint states that the number of cars and amount of money at issue will likely change as the ongoing investigation into the scope and extent of the scheme continues. The complaint describes the multiple steps taken by the coconspirators to defraud purchasers of the cars. For example, the complaint describes how defendants purchased high-mileage or old-model vehicles and then, with the assistance of other co-conspirators, rolled back the odometers of the vehicles. Further, the defendants altered documentation related to the vehicles, including titles and registrations, to reflect the lower mileage amount and other fraudulent information. The complaint alleges the fraudulent alterations were made with the goal of increasing the prospective sale price of the vehicles. In addition, when selling the vehicles, the defendants portrayed themselves as the prior owners of the vehicles, including by altering California identification cards, … Continue Reading

Two Texas Men Plead Guilty in Odometer Fraud Scheme

Home » Office of Public Affairs » News JUSTICE NEWS Department of Justice Office of Public Affairs FOR IMMEDIATE RELEASE Wednesday, April 28, 2021 Two Texas Men Plead Guilty in Odometer Fraud Scheme Two Texas men pleaded guilty today, to for their roles in an odometer tampering scheme. According to court documents, Nepthali Luna, 61, of San Antonio, pleaded guilty to one count of conspiracy to make false odometer statements and commit securities fraud, while his son, Devon Luna, 36, also of San Antonio, pleaded guilty to two counts of making false odometer statements and two counts of securities fraud. As part of their plea agreements, the defendants admitted that between 2016 and 2018, they engaged in a scheme to sell high-mileage, used vehicles with false, low mileage readings entered on the vehicles’ odometers, titles and odometer disclosure statements. According to court filings, Devon Luna purchased high-mileage vehicles through his company, Pioneer Auto Finance. The defendants then caused the vehicles’ odometers and titles to reflect false, low mileages, and they sold the vehicles for inflated prices to unwitting consumers. “The Department of Justice remains steadfast in its commitment to protect consumers against deceptive practices, including odometer fraud schemes,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “Consumers are entitled to truthful information about the vehicles they purchase, including the amount of miles that a used vehicle has been driven.” In pleading guilty, the Lunas admitted that they caused at least 225 vehicles to be sold with “rolled back” odometers. The defendants admitted that the scheme resulted in consumer losses of more than $550,000. Both defendants are scheduled to be sentenced on Aug. 3, 2021. Nepthali Luna faces a maximum sentence of five years in prison on the conspiracy charge. Devon Luna faces … Continue Reading

Utah County man facing numerous odometer fraud cases is charged again

By Pat Reavy@DNewsCrimeTeam Aug 6, 2020, 10:09am MDT SALT LAKE CITY — A man who has several pending cases on charges of changing the odometers of vehicles and selling them has been charged yet again. Steve Stone, 25, of Lehi, was charged Thursday in 3rd District Court with fraudulently changing an odometer, a third-degree felony. On July 11, 2019, a man met with Stone to buy a vehicle he found online, according to charging documents. After purchasing the vehicle, the victim “checked the Carfax history and discovered a mileage discrepancy of over 90,000 miles,” the charges state. The victim then found an article that originally appeared in the Deseret News that talked about Stone being accused of doing the same thing, and recognized Stone as the person who sold him the vehicle, according to charging documents. For Stone, it’s the latest in a series of investigations involving odometer tampering. He and two family members were charged in April 2019 with five counts of communications fraud and five counts of odometer violation. A pretrial conference for that case was scheduled for Aug. 24. Stone was charged with similar crimes in April, July and October of 2018, and July 2017. A preliminary hearing regarding all of his pending cases was scheduled for Aug. 24. Original Story here

‘High-Tech’ Thieves Hacked Into Newer-Model Nissans and Drove Away

Stolen cars were sold to unsuspecting buyers, police say By Scott Gordon • Published June 11, 2020 • Updated on June 11, 2020 at 10:55 pm Auto theft investigators say they’ve busted a “high-tech” ring of North Texas car thieves who hacked into newer-model Nissans, made their own electronic keys, and sold the cars to unsuspecting buyers. “It can happen so fast,” said Commander Brian Sudan of the Tarrant Regional Auto Crimes Task Force. “We’ve seen thieves who can hack these cars in less than three minutes.” The ring stole more than $1.2 million worth of cars from the streets of North Texas, some of them virtually brand new, police said. Sudan didn’t want to give too many details on how the thieves were able to drive off in new cars but said they worked with used car dealers to get clean titles. They do it by replacing the vehicle identification numbers so nobody knows it’s stolen, he said. The number on a stolen 2020 Altima, for example, really belonged to another Altima which was found on a salvage lot to be sold for scrap. Police have identified up to 62 stolen vehicles but suspect there are more. Only a small number have been recovered, Sudan said. Gustavo Torres, 33, the alleged ringleader of the operation, was arrested. Investigators searched three used car dealers in Dallas who took the stolen cars and sold them to unsuspecting buyers. “They have no clue they are buying a stolen car,” Sudan said. So two people claim to own the same car. “We run into some very sticky situations,” he said. “Somebody bought this car, paid a lot of money for it. And then there’s a person who lost this car and lost a lot of money.” Sudan said the courts will have … Continue Reading

Police arrest fraud suspect hiding in his basement

Monroe police officers arrested Jovani Capozziello, 33, with assistance from Bridgeport officers, at his home Tuesday, where he was hiding in the basement, according to police. Jovani Capozziello Capozziello was charged with illegal tampering with an odometer, third-degree larceny, third-degree telephone fraud, criminal impersonation, and three counts of second-degree forgery. He was released on $25,000 bond for a July 24 court date, then released to the Bridgeport Police Department on its active arrest warrants for other incidents. On Feb. 26, a Monroe man filed a fraud complaint, telling police he inquired about a vehicle posted for sale on Craigslist on Feb. 25 and spoke to the seller, who went by the name of Carlos. After agreeing to terms, police said the victim met the seller at the Henny Penny gas station at 241 Roosevelt Drive in Monroe on Feb. 25, did a test drive and was satisfied with the vehicle, according to the report. Police said he paid the seller $3,000 in cash for the Subaru and received a copy of the Connecticut Certificate of Title and Assignment of Ownership (Bill of Sale) for the vehicle. But when the victim attempted to register and insure the vehicle, he discovered the title was fraudulent, the odometer had been altered and the Subaru was actually one year older than the seller originally told to him. After communicating with “Carlos” about these discrepancies, he received an altered New York Certificate of Title that was mailed without a return address, police said. During the investigation, Monroe police detectives used phone records to develop Jovani Capozziello as a suspect. Based upon this information and the victim’s statements, an arrest warrant was granted by the Superior Court. View original story:

U.S. Attorneys » Southern District of Mississippi » News Share Department of Justice U.S. Attorney’s Office Southern District of Mississippi FOR IMMEDIATE RELEASE Wednesday, January 22, 2020 Two Mississippi Men Sentenced for Roles in Automotive Fraud Scheme Two Long Beach, Mississippi men were sentenced today for their roles in a long-running odometer tampering scheme, the Department of Justice announced. U.S. District Judge Louis Guirola Jr. sentenced Oscar M. Baine, 42, to 36 months’ incarceration and ordered him to pay $619,200 in restitution. Jeffrey Lyn Savarese II, 36, was sentenced to 15 months’ incarceration and ordered to pay $320,000 in restitution. Both men pleaded guilty in July to conspiracy to alter odometers. Baine also pleaded guilty to odometer tampering. As part of his guilty plea, 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. He also admitted that he and a co-conspirator caused at least 387 vehicles to be rolled back between 2011 and 2014, which resulted in consumer losses of more than $600,000. 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 has long been committed to prosecuting automobile dealers, wholesalers, and mechanics who defraud consumers by selling vehicles with unlawfully altered odometers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Vehicle mileage is critical to consumers who rely on that information to evaluate the value and safety of a used vehicle.” “These criminals … Continue Reading

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