Category Archives: Topics

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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Texas Department of Motor Vehicles (TxDMV) – Press Release

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In April 2014, the Texas Department of Motor Vehicles (TxDMV) received several complaints from a county tax office regarding the use of fraudulent identification documents to transfer titles. The TxDMV opened an investigation and determined Damaris Sarai Martinez submitted over 40 title transactions listing fraudulent Texas driver licenses, fraudulent addresses, and fraudulent trade allowances. The TxDMV partnered with the Texas Department of Public Safety Criminal Investigation Division to further investigate Martinez. A search warrant was obtained for a location where she operated and fraudulent documents were obtained. Martinez was charged for violation of Texas Transportation Code, Section 501.155, False Name, False Information, and Forgery, which is a third degree felony. On February 24, 2017, she entered into a plea agreement for ten years confinement in the Texas Department of Criminal Justice and payment of a $2,000 fine. The sentence was suspended, and she was placed on probation for five years. Martinez was subsequently taken into custody by Immigration and Customs Enforcement for deportation.

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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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Former tax office clerks allegedly violated code by giving illegal discounts

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Two former employees of the Brazos County Tax Office turned themselves in earlier this week after authorities say they illegally gave people discounts on vehicle transfer taxes. According to the Brazos County Sheriff’s Office, April Arredondo, 36, of Bryan, admitted to processing about 50 fraudulent vehicle title transfers in ways that gave the person receiving the vehicle a tax discount. She told investigators she was compensated $20 to $50 per transaction. Sonya Tijerina Munoz, 26, of Bryan, told investigators she submitted a similar fraudulent affidavit to Arredondo for her to process, authorities said. Each woman bonded out of jail shortly after they were booked. They’re accused of violating the Texas Transportation Code by providing false information. If convicted, each woman faces two to 10 years in prison and a $10,000 fine for the third-degree felonies. According to a probable cause statement from the sheriff’s office, who investigated the case with the help of the Texas Department of Motor Vehicles, county tax employees observed Arredondo processing title transfer applications while no customers were present, and that signatures may have been forged. Arredondo was terminated from the tax office in February when the employees reported what they saw, the report says. Munoz resigned her position in late spring. The DMV investigator ran a report of the transactions Arredondo processed and found more than 30 transactions that were possibly fraudulent. The investigator noticed numerous transactions that were processed as gift transactions, which allows the owner of a vehicle to give that vehicle to a relative and claim a partial exemption from paying state sales tax for the vehicle. In the case of gift transactions, the seller and buyer both have to sign a gift tax affidavit and it has to be notarized. The investigator ran the names of both parties in each gift … Continue Reading

Victims of alleged auto title fraud and rollbacks reimbursed by district attorney’s office

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Many victims of JD’s Auto Sales were reimbursed Thursday morning. Customers were victims of alleged odometer rollback and title fraud. The car lot was shutdown and the owners were arrested Nov. 13, 2014. (Staff Photo: Kayla Langmaid) JONESBORO — Nearly two years after a Forest Park dealership was raided and the owners were arrested for multiple violations, the Clayton County District Attorney’s office is working to reimburse at least 90 victims who were affected by an alleged scam at the hands of the owners. Customers who fell victims to a purported scheme by JD’s Auto Sales on Jonesboro Road were given the opportunity to get some of their money back Thursday, thanks to the Clayton County District Attorney’s Office. District Attorney Tracy Graham Lawson presented 68 victims with a check for $1,250 Thursday morning at the Harold R. Banke Justice Center. The remaining victims will be mailed a check. Owner of JD’s Auto Sales, John Emumwen Egbe and his son, Sylvester Emumwen Egbe, were arrested during a raid Nov. 13, 2014. The two men face charges of certificate of title violations and false swearing due to a large number of odometer rollbacks and title fraud. The 130-car lot was raided by officers with Georgia Department of Revenue, Clayton County District Attorney’s Office, Forest Park Police Department and Clayton County Sheriff’s Office. A safe on the premises yielded $97,000, Lawson said. “We successfully forfeited $125,000 from JD’s Auto Sales,” she said. The victims will also not have to worry about any court fees, according to Lawson. DOR case Investigator Richard Trinkwalder said the lot had been under scrutiny for possible odometer rollback and title fraud. A rollback falsely inflates the value of a vehicle by reducing the number of miles shown on the odometer. The alleged title fraud involves recording the … Continue Reading

USED MOTOR VEHICLE DEALER AND FORMER STATE EMPLOYEE ARRESTED IN GEORGIA FOR ODOMETER TAMPERING SCHEME

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Two Atlanta, Georgia, residents were arrested this week by a team of federal and Georgia state agents, the Department of Justice announced. Rojen Burnett, 33, and Amber McLaughlin, 32, were charged in a 25-count indictment with securities fraud, making false odometer statements and conspiracy to commit these offenses.  Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles.  McLaughlin was a customer service specialist at the Motor Vehicle Department (MVD) of the Georgia Department of Revenue, the indictment alleges. According to the indictment, as early as February 2012 and through at least May 2013, the defendants devised a scheme to defraud buyers of used motor vehicles by rolling back the vehicles’ odometers and causing consumers to pay more for the vehicles than they would have paid if they had known the vehicles’ actual miles. As part of the scheme, the indictment charges that Burnett purchased high-mileage, used motor vehicles from auctions in Maryland and Virginia. Burnett then caused the odometers in these vehicles to be altered to reflect false, lower mileage, according to the charges. The indictment also alleges that Burnett caused the existing titles associated with these vehicles to be altered to reflect the false, lower mileages.  McLaughlin provided him with newly issued, clean Georgia titles reflecting the false, lower mileages, according to the charges. Using these new Georgia titles, Burnett subsequently sold the motor vehicles to other dealers through an auto auction, the indictment alleges. “Individuals who buy and sell used vehicles cannot alter odometers and the associated paperwork to increase their value,” said Principal Deputy Assistant Attorney General Benjamin J. Mizer, head of the Justice Department’s Civil Division. “Consumers who purchase used vehicles need accurate mileage information to assess the value and safety of a potential vehicle purchase.  We … 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

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