Category Archives: Topics

8 from St. Louis area sentenced for vehicle title fraud ring

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ST. LOUIS • Eight St. Louis-area men and women have been sentenced for their involvement in a ring that altered vehicle documents to obtain loans, prosecutors said Thursday. The ring altered documents to remove lienholders before selling the vehicles or to obtain new loans, prosecutors said. They also reduced the value of the vehicles on documents or changed the state of residence of owners to dodge taxes and license fees, they said. Federal, state and local investigators were able to document $311,000 in losses due to the scheme, but estimate that the true loss amount approached $1 million. The eight defendants received prison terms ranging from probation to more than 11 years in prison. The final defendant in the case, Justin Carter, 22, of St. Louis, was sentenced Wednesday to five years in prison. The leader, Randall Hinton, 33, of St. Louis was sentenced Aug. 11 to 11 years, four months in prison, prosecutors said. Original Article: http://www.stltoday.com/news/local/crime-and-courts/from-st-louis-area-sentenced-for-vehicle-title-fraud-ring/article_caf48294-7e55-5095-9ab7-c77e17635956.html 

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Two accused of car scam

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Two accused of car scam Two men are accused of running a car racket in which they sold second-hand vehicles with false odometer readings. Police allege the men bought 20 vehicles with high kilometre readings on sales websites this year. They then allegedly bought car parts, including odometers with lower readings, from wreckers and swapped them into the vehicles before selling them to unsuspecting buyers. The men also allegedly changed log book records to match the modifications and removed service stickers from vehicles. By wiping off thousands of kilometres, the vehicles appeared newer and worth more, police claim. Regional investigations unit officers swooped on the pair after spotting two sales advertisements for what they alleged was the same vehicle with different odometer readings. Officers raided a Victoria Park property and allegedly seized documentation, vehicle service stamps and log books connected to the fraudulent modifications and sales. The men, who are in Australia on student visas, allegedly made almost $40,000 profit from the scam this year. One man who allegedly bought a Holden sedan from the pair said the odometer showed it had done 80,000km but he was told by police it had actually travelled 180,000km. He claimed a check by a mechanic had not picked up the illegal modification. “It’s a safety issue as well as an expense – because the car has been driven more than I thought, it will probably have more problems and because it had been tampered with, it isn’t even worth what it would have been with the correct odometer reading,” he claimed. Police have charged a 28-year-old man with 19 counts of gains benefit by fraud and one count of attempted gains benefit by fraud. A 27-year-old man has been charged with 19 counts of gains benefit by fraud and two counts of attempted … Continue Reading

Bremerton cops nab 2 in odometer-rollback scam, 1 at large

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BREMERTON, Wash. — Three brothers are accused of ripping off dozens of car buyers in Bremerton by rolling back odometers to sell the vehicles at a higher price. Bremerton Police arrested two of the brothers on Wednesday then served warrants at two Navy Yard City properties located in the 3700 block of Madrona Street and the 3700 block of C Street, where the vehicles were stored. During the search, detectives impounded at least three vehicles that were not registered to the properties. “Unfortunately, most of (the victims) didn’t know they’d been taken advantage of until I contacted them,” said Bremerton Police Det. Martin Garland. The organized crime investigation started in January 2014 after a victim found a repair invoice in a vehicle that was purchased from the suspects. The victim noticed the mileage didn’t look right, checked the car’s history on CarFax, and determined the mileage was incorrect. Bremerton Police said the brothers purchased the cars on Craigslist then resold them at higher costs after rolling back the odometers, which would make it appear the cars didn’t have as many miles so the suspects could get more money. “One of the big pieces to this puzzle was we were able to determine the CarFax account that our suspects were using and they, themselves, were running a CarFax on the vehicles,” said Det. Garland. “They would print that out, alter the mileage on the CarFax report, and then provide it to the victims as proof of the mileage.” Detectives subpoenaed the records for the suspects’ CarFax account and learned the suspects had done more than 3,000 searches for vehicles. Detectives said the men always made cash transactions and they did not register the titles of the cars to make it appear they were never in possession of the vehicles. In some … Continue Reading

Couple accused of running a chop shop

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David Bernando Cruz Joselyn Cruz TAVARES — A two-county investigation has shut down an Astatula chop shop whose operators are accused of dealing in stolen cars from three states, authorities said. David Bernando Cruz, 30, and his wife, Joselyn Cruz, 31, were charged with operating a chop shop. David Cruz has been released from the Lake County Jail after posting a $50,000 bond. Joselyn Cruz was jailed in Osceola County on the same bail. Lake County detectives began investigating the two after receiving information from the Osceola County Sheriff’s Office regarding the couple having a large amount of vehicles to sell and looking for a place to get rid of them. The couple allegedly stole vehicles throughout Florida, as well as in Alabama and Georgia, with a tow truck they owned. They reportedly rolled back the mileage and covered up any damage to the vehicles. It also was alleged that David Cruz would get vehicles from owners who couldn’t make their car payments under an agreement that he would assume the payments. He then allegedly hid those vehicles from repossession companies until he could obtain fraudulent titles on the vehicles and resell them. Lake County sheriff’s detectives eventually learned of a warehouse at 14200 Corkwood Lane in Astatula,where the couple had allegedly been hiding vehicles. Detectives executed a search warrant on the property in Astatula and discovered 16 vehicles, two of which were confirmed stolen, and some with missing vehicle identification numbers. The owner of a car dealership in Osceola County allegedly agreed to allow the couple to use his lot for a portion of the proceeds. Lake sheriff’s Sgt. Fred Jones said Tuesday that an investigation recently wrapped up by the Osceola County Sheriff’s Office included evidence gathered during a search of the auto sales business. Following the search, … Continue Reading

Ex-North Hills Car Salesman Gets Prison In Odometer Fraud Scheme

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CBS2 Investigative Reporter David Goldstein first confronted Shamai Salpeter (right) and uncovered the odometer fraud scheme in 2012. (CBS) LOS ANGELES (CBSLA.com) — A former San Fernando Valley car salesman was sentenced Monday to a year in federal prison for rolling back odometers for people who exceeded mileage limits on their leases. Jeffrey Levy, 62, was also ordered to serve three years of supervised release upon getting out of prison and to pay restitution of about $115,800 to the owners of 21 cars with altered odometers. U.S. District Judge George H. King ordered that $35,000 of the amount be paid immediately. Levy was also prohibited from employment related to the purchase, sale, leasing, or financing of new or used motor vehicles during the period of supervised release and ordered him to undergo treatment for mental health issues and a gambling addiction. Prosecutors say while working at Galpin Ford in North Hills, Levy referred customers and friends to co-defendant Shamai Salpeter, 65, over a period of three years in a scheme in which people paid up to $400 to avoid penalties for exceeding mileage limits on leases or to increase auto trade-in values. Salpeter previously pleaded guilty and is expected to be sentenced April 13. Both men pleaded to conspiracy to commit odometer tampering. Salpeter was the subject of a 2012 hidden-camera investigation of odometer fraud by CBS2 investigative reporter David Goldstein. Original Article: http://losangeles.cbslocal.com/2015/03/16/ex-north-hills-car-salesman-to-be-sentenced-in-odometer-fraud-scheme/ 

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Woodland Hills man will go to jail for odometer tampering

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A man who was once a top salesman at a San Fernando Valley car dealership was sentenced Monday to a year in federal prison for conspiring to roll back vehicle odometers in a scheme in which people paid up to $400 to avoid penalties for exceeding mileage limits on leases or to increase auto trade-in values. Jeffrey Levy, a former salesman at Galpin Ford in North Hills, was also ordered to serve three years of supervised release upon getting out of prison and to pay restitution of about $115,800 to the owners of 21 cars with altered odometers. U.S. District Judge George H. King ordered that $35,000 of the amount be paid immediately. The judge also prohibited the 62-year-old Woodland Hills resident from employment related to the purchase, sale, leasing, or financing of new or used motor vehicles during the period of supervised release and ordered him to undergo treatment for mental health issues and a gambling addiction. Levy “defrauded his dealership and multiple customers,” undermining “the trust that people have” when they purchase or lease a car, King said. The defendant told the court prior to sentencing that he would “probably deserve” whatever penalty came his way, adding that there were “so many things I could do for the federal government rather than be incarcerated.” King ordered Levy to surrender to federal authorities on April 20 to begin his sentence. A co-defendant, Shamai Salpeter, 65, previously pleaded guilty to conspiracy to commit odometer tampering and is expected to be sentenced April 13. While working at the dealership, Levy referred customers, including friends, to Salpeter, who charged $100 to $400 to roll back the odometer readings, which he did using electronic tools in the driveway of his Woodland Hills home, federal prosecutors said. Levy then accepted the vehicles for lease … Continue Reading

Authorities arrest 28 suspects in connection with vehicle theft operation

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A total of 28 suspects were arrested throughout Southern California on Feb. 26 during a multi-agency investigation into a large-scale vehicle theft operation, according to California Highway Patrol. The investigation was spearheaded by the CHP Border Division’s Orange County Auto Theft Task Force (O.C.A.T.T.), along with the Ontario Police Department and more than 15 other state and local agencies from four counties. Suspects who were wanted for vehicle theft, identity theft, credit card and insurance fraud were arrested in various cities. The operation “Hogg Life” developed after an extensive investigation in which O.C.A.T.T. investigators identified 47 suspects, 125 stolen vehicles and several local businesses from information stemming from a traffic enforcement stop by the Ontario P.D. The investigation involved the fraudulent removal of lien holders (legal owners) from the vehicles’ titles, commonly known as “Title Washing.” These vehicles were then utilized to commit various additional crimes throughout Southern California. The coordination of resources from numerous multi-jurisdictional task forces and agencies resulted in 103 vehicles being recovered or accounted for. In addition, as a result of the operation, three weapons were seized and 18 additional vehicles were identified as either possibly stolen, vin-switched or fraudulently purchased. Original Article: http://www.fontanaheraldnews.com/news/article_b6060e62-bf91-11e4-bdaf-33e7e10ecf2b.html

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Chamblee car dealer arrested, accused of changing odometers

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1 of 4 Chamblee police took the owner of one car dealership into custody late Thursday afternoon. They say people bought cars from the man seeing a certain mileage on the odometer only to learn too late that mileage was way off. Chamblee police went to the Capitol Auto and Trucks dealership late Thursday afternoon to arrest the company’s CEO Daniel Bedolla Garcia for altering the odometers of cars sold at the dealer. Channel 2’s Amy Napier Viteri talked with one victim, Luis Ortiz Alvarado by phone who said he bought a Toyota Tundra from the dealer in August. He says the truck’s odometer read about 98,000 miles. But he soon noticed transmission problems. Investigators learned when the dealer bought the truck the actual odometer reading was 227,000 miles. “I have never seen an odometer reading being altered that bad. —  130,000 miles, that’s outrageous,” said Capt. Ernesto Ford with the Chamblee Police Department. A second man also went to Chamblee police saying he bought a Dodge Charger with 110,000 miles, according to the odometer and paperwork from the dealer. A Carfax report showed the car really had closer to 180,000 miles on it. Viteri went to the dealership Thursday night.  A woman inside told her they don’t want to speak about the accusations yet. Alvarado told Viteri he’s angry. He’s also out $9,000 with no car to show for it. “It’s very difficult because, you know, we work hard to get the money and it’s not fair for us that they do that to us,” Alvarado said,. Police believe the owner of the dealer took advantage of clients possibly assuming they wouldn’t report the issues or even realize it was illegal. Investigators with Chamblee police say they want any other victims to contact them.

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Former Car Dealer Gets Shock Incarceration for Altering Odometers

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SPRINGFIELD, Mo. – A Springfield car dealer was sentenced Wednesday for rolling back the mileage on cars he sold. Ashley Bolton, who owned Excel Auto Group, must serve 30 days in shock-incarceration at the Greene County Jail, along with five years of supervised probation. This shock-incarceration comes as part of a suspended sentence of four years in the Missouri Department of Corrections. If Bolton does not finish the shock-incarceration program, he will be moved to the Missouri Department of Corrections to serve the four-year prison sentence. Bolton is also banned form working as or for a licensed automobile dealer and must provide restitution to consumers. The amount of restitution will be decided during a hearing on March 10. In 2013, Attorney General Chris Koster charged Bolton with two felony counts of unlawful merchandising practices. He pleaded guilty in September 2014. An investigation by Koster’s office and other organizations revealed Bolton misrepresented the actual mileage of vehicles being offered for sale by Excel Auto Group in 2011 and 2012. According to Koster, in one case, Bolton bought a car with more than 180,000 miles then sold it representing it had only 99,000 miles. In another, Bolton bought a car with nearly 220,000 miles then sold it less than a month later with an odometer reading of 119,000 miles. Consumers who suspect odometer fraud should call the Missouri Attorney General’s Consumer Protection Hotline at 800-392-8222 or file a complaint on the website. Orginial Artice: http://www.ozarksfirst.com/story/d/story/former-car-dealer-gets-shock-incarceration/36986/LzW6CM8hlUKNh_Vwu9d_4Q

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Used Motor Vehicle Dealers Indicted for Odometer Tampering and Money Laundering

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Office of Public Affairs FOR IMMEDIATE RELEASE A Queens, New York, man and his Israeli brother were charged in indictments unsealed today in federal courts in Philadelphia and Brooklyn, New York, with offenses related to a long-running odometer tampering and money laundering scheme, the Justice Department and the U.S. Attorney’s Office for the Eastern District of New York announced. Chaim Gali aka Mike Gali and John Triculy, 40, of Queens Village, New York, and Shmuel Gali aka Sam Gali, 42, of Israel, are charged in a 15-count indictment in the Eastern District of Pennsylvania (EDPA) with conspiracy, securities fraud and false odometer statements.  The Galis are also charged in a related two-count indictment in the Eastern District of New York (EDNY) with mail and wire fraud conspiracy, and money laundering conspiracy.  If convicted of the charges in the EDPA indictment, the defendants face a statutory maximum of five years in prison on the conspiracy charge; a statutory maximum of 10 years in prison for each securities fraud charge and up to three years in prison for each false odometer statement charge.   If convicted of the charges in the EDNY indictment, they face a statutory maximum of 20 years in prison for each of the charges. “Mileage is one of the most important factors in a consumer’s decision to purchase a used car,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Misrepresenting the mileage on a used car fraudulently induces a consumer to pay more money for less value, and it hides necessary information that will affect how a consumer maintains and repairs that vehicle.” The indictments allege that the Galis devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles they sold beginning as early as … Continue Reading