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Wichita Man Pleads Guilty to Conspiracy to Commit Odometer Tampering
Department of Justice
U.S. Attorney’s Office
Western District of Oklahoma
FOR IMMEDIATE RELEASE
Tuesday, February 14, 2023
OKLAHOMA CITY – MICHAEL MARKS, 31, of Wichita, Kansas, pleaded guilty today to conspiracy to commit odometer tampering, announced U.S. Attorney Robert J. Troester.
Public records reflect that on February 10, 2023, Marks was charged by Information with one count of conspiring to alter the odometers of motor vehicles. The Information alleges that between August 2017 and July 2022, Marks and his coconspirators purchased 15 used vehicles, altered their odometers to register lower mileages, and then resold the vehicles to unsuspecting buyers. Federal law prohibits conspiring to knowingly and willfully disconnect, reset, and alter an odometer of a motor vehicle intending to change the registered odometer mileage.
Today, Marks pleaded guilty to the Information. Marks will be sentenced in approximately 90 days. At sentencing, Marks faces up to three years of imprisonment and a fine of $250,000. Under the terms of his plea agreement with the government, Marks has also agreed to pay restitution to the victims who purchased the 15 vehicles.
This case is the result of an investigation by the U.S. Department of Transportation’s Office of Odometer Fraud Investigation. The case is being prosecuted by Assistant U.S. Attorney D.H. Dilbeck.
Reference is made to the Information and other public court filings for further information.
Three Chicago Men Charged with Odometer and Title Fraud
JUSTICE NEWS
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, November 3, 2022
A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.
According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.
Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.
The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.
Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brown Sentencing Press Release
San Jose trio sentenced in odometer rollback scheme
SAN FRANCISCO – Three San Jose men have been sentenced to prison terms for their roles in a conspiracy to buy high-mileage vehicles, roll back their odometers to make them appear newer and sell them at “significant profits,” according to the U.S. Attorney’s Office.
U.S. District Court Judge Susan Illston on Friday sentenced 32-year-old Seymur Khalilov to two years in prison and 32-year-old Orkhan Aliyev and 31-year-old Ramil Heydarov to 20 months in prison each, the agency said in a news release Friday.
In October, the defendants pleaded guilty to one count each of conspiracy to commit wire fraud.
According to their plea agreements, the defendants admitted to fraudulently selling at least 78 vehicles with altered odometers for a total of $550,000, prosecutors said.
The scheme spanned from at least October 2017 to December 2020, prosecutors said. In one case, Khalilov rolled back the odometer of a vehicle from 35,000 miles to 35 miles, according to a sentencing memorandum filed by the U.S. Attorney’s Office.
The defendants also admitted they advertised the vehicles for sale on Craigslist and used doctored driver’s licenses to facilitate the sales, prosecutors said. Aliyev, for example, had multiple licenses with the same photograph but different people’s names.
In addition to prison terms, Illston ordered Heydarov and Aliyev to forfeit $379,325 and $196,578, respectively. A date to determine Khalilov’s restitution has not been scheduled.
Victims of the scheme will have one year from the date of judgment to seek restitution.
The National Highway Traffic Safety Administration, or NHTSA, estimates that odometer fraud in the United States results in consumer loses of more than $1 billion annually. Steps consumers can take to protect themselves include purchasing a vehicle report and comparing the mileage numbers, ensuring the seller’s information matches the information on the title, and not using cash to purchase a vehicle.
Anyone with information related to odometer tampering can contact the NHTSA’s fraud hotline at 800-424-9393 or 202-366-4761.
Ford Mustang Among Top 20 Vehicles Subjected To Odometer Fraud
By Brett Foote
Automotive theft has grown steadily in recent years, moving to the forefront of vehicle-related problems most of us are concerned about, in addition to distracted drivers and reliability. But there’s another issue that Ford Mustang owners should apparently be worried about as well – odometer fraud. A recent study from Car Vertical found that the Mustang is one of the top 20 “clocked” vehicles across the globe, which means that the odometer has been altered to make it look like a vehicle has less miles than it has actually traveled.
In the U.S. alone, the National Highway Traffic Safety Administration (NHTSA) estimates that 450,000 vehicles are sold each year with altered odometers, a crime that costs customers around $1 billion annually. Vehicles with lower miles obviously sell for more money than higher-mileage examples, which is what motivates dishonest folks to commit odometer fraud.
Car Vertical analyzed over 700,000 used car history reports generated between November 2020 and November 2021 from 18 different counties to come up with its top 20 list of most clocked vehicles, which is dominated by German makes and models. A whopping 33.6 percent of BMW M5 models included in the study had altered odometers, and BMW vehicles make up around half of the top 20 list in total.
Meanwhile, the Ford Mustang ranked ninth at 25.9 percent, a still-significant number that should serve as a major warning for anyone looking to purchase a used pony car. According to Car Vertical, the most clocked model years of the Mustang are 2014, 2015, and 2016. Coincidentally, the Mustang became a global model when the S550 generation launched for the 2015 model year.
Odometer fraud is a common crime because it’s extremely easy to commit, and the rewards can be high. However, there are ways that consumers can avoid purchasing a vehicle that’s been clocked. Those looking to buy a used vehicle should always compare the odometer reading to the mileage listed on the car’s title, and look to see if the title appears altered in any way. It also helps to look over maintenance and inspection records, as well as oil change stickers, the condition of the tires, and overall wear and tear to see if it matches the vehicle’s mileage. Finally, obtaining a vehicle history report might cost a few dollars, but it could also save buyers thousands in the long run.
We’ll have more automotive insights like this to share soon, so be sure and subscribe to Ford Authority for more Ford Mustang news and non-stop Ford news coverage.
Owner of car dealership arrested for allegedly tampering with the odometer
Published: August 7, 2021 5:07 pm
Tags: Local News, News
The owner of a Miami-Dade County car dealership was arrested for selling a vehicle after tampering with the odometer.
Man pleads guilty in federal auto fraud case
Man pleads guilty in federal auto fraud case
By Tara Gray
Published: Sep. 2, 2020 at 6:25 PM EDT
DAVENPORT, Iowa (KWQC) – One of six men charged in an auto fraud scheme involving a now-closed Moline used vehicle business has pleaded guilty in federal court.
Court records show Kendric Vendrell McCray pleaded guilty Tuesday to conspiracy to commit wire fraud in U.S. District Court, Davenport. The charge carries a sentence of up to 20 years in prison, according to the written plea agreement.
He will be sentenced Jan. 14.
McCray and co-defendants Bradley Shane McCorkle, Isaac Bell, Derek Martinez, Keithen Deone McCorkle, and Nicholas T. McFarlin were indicted in November.
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According to the plea agreement in McCray’s case:
4th Avenue Auto Sales, a used motor vehicle business at 4130 4th Avenue, Moline, was owned and operated by Bradly McCorkle and Bell.
The two men, through the business, bought cars from local auto dealers and auto auctions and accepted vehicle trade-ins.
McCray was acquainted with Bradley McCorkle for many years and, at times between 2012 and 2018, he worked for the business and performed odd jobs, such as mowing and driving cars for the business.
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Generally, he was paid in cash by Bradley McCorkle.
Sometime between 2013 and 2018 or earlier, McCray, Bradley McCorkle, Bell, and others conspired to defraud the state of Iowa and purchasers of used motor vehicles by materially false and fraudulent pretenses, representations and promises, and by the intentional concealment of material facts.
McCray helped to conceal the price paid for used motor vehicles, the identity of the true owner and seller of used motor vehicles, and concealed the vehicle history of the used motor vehicles.
He also helped to conceal the actual mileage on more than 150 used motor vehicles, as well as the vehicles’ operating conditions and sale price.
McCray acted as a straw buyer of used vehicle for 4th Avenue and assisted in having his name used on sale documents, applications for vehicle titles, and titles of dozens of used motor vehicles.
He as strictly as “nominee buyer” for 4th Avenue, Bradley McCorkle, Bell, and sometimes Keithen McCorkle and McFarlin.
McCray was paid around $30 in cash by Bradley McCorkle for each vehicle McCray fraudulently titled in his name.
By having vehicles put in his name and applying for vehicle titles in Davenport, McCray facilitated the “washing” of the title histories, which included removing the mileage figure that appeared on the titles.
He did not reset or alter the odometers of the motor vehicles but made false and fraudulent representations when he applied for titles and engaged in “phantom, false, and illusory” transactions to that it appeared he bought the vehicles when he had not.
McCray further concealed the amount of money involved in the vehicle transactions including the prices paid for the vehicles.
McCray is not a mechanic and had no tools or other means to repair a motor vehicle. “Bills of Sale” produced by 4th Avenue in connection with motor vehicle transactions purportedly between 4th Avenue and McCray contained notations that some or all of these sales were “mechanics specials.”
These were false representations by McCorkle that allowed the vehicles to appear to have a lower value when applying for the title, thus reducing taxes and fees.
McCray was aware that the vehicles placed in his name were changing hands through 4th Avenue and being sold by third parties, including McFarlin, Keithen McCorkle, and others.
He also was aware of the vehicle he purportedly purchased as a straw buyer was being advertised for sale online, including through postings on Craigslist.
Around Dec. 5, 2014, 4th Avenue purchased a 2008 Dodge Caliber from Central Petroleum Company in Blue Grass. The vehicle at the time of purchase had an odometer reading of 177,700 miles.
Ten days later, 4th Avenue assigned the title, which listed an odometer reading of 45,584 miles, to McCray. He then reassigned it back to 4th Avenue with 45,584 miles.
Around Dec. 23, 2014, the vehicle was reassigned from 4th Avenue to an unwitting buyer showing that it had 45,708 miles on it.
McCray executed the false title application, claiming to own the vehicle, but he did not pay 4th Avenue and never took possession of it, according to the plea agreement.
Bradley McCorkle and Bell are each charged with conspiracy to commit wire fraud, six counts of wire fraud, 10 counts of tampering with a motor vehicle odometer, and securities fraud involving a motor vehicle.
Keithen McCorkle, McFarlin, and Martinez are each charged with conspiracy to commit wire fraud and six counts of wire fraud.
A trial is scheduled Sept. 29.
Copyright 2020 KWQC. All rights reserved.
Secretary Lawson provides restitution to victims of auto dealer scam
INDIANAPOLIS (May 29, 2020) — After receiving a consumer complaint about an auto dealer who illegally kept warranty payments, the Indiana Secretary of State’s Office has secured restitution for those affected by the crime.
In July 2019, a consumer contacted the Auto Dealer Services Division of the Secretary of State’s Office, claiming she had paid Stephens Automotive Group for a warranty, and that the warranty was never received by the warranty company. An investigator from Dealer Services reached out to the warranty company to confirm that Stephens Automotive Group had failed to transfers funds for several warranties, which failed to activate the warranties.
Multiple complaints followed over the next two months, and Dealer Services collected evidence verifying the consumer claims. In December 2019, an investigator from the Division met the owner of Stephens Automotive Group, where the owner admitted to not sending the money to the warranty company.
In February 2020, the Division issued an order for restitution requiring Stephens Automotive Group to pay a total of $8,673.00 to five consumers.
“I am proud of the work done by the Dealer Services Division, and very glad that this consumer complaint resulted in restitution,” said Secretary of State Connie Lawson. “Because of the cooperation between our Division, our constituents, and the warranty company, we were able to bring this case to a quick and fair conclusion.”
Consumers may file complaints against an Indiana auto dealership by visiting the Auto Dealer Services Division website at https://www.in.gov/sos/dealer/index.htm.
https://calendar.in.gov/site/sos/event/secretary-lawson-provides-restitution-to-victims-of-auto-dealer-scam/
Atlantic man pleads guilty to wire fraud
By Jeff Lundquist Atlantic News Telegraph Publisher 3/24/2020
United States District Judge has accepted a guilty plea from Atlantic businessman Larry Scott Fulk to one count of wire fraud for swapping out high mileage odometers with lower lower mileage ones without disclosing that to potential buyers.
Fulk, owner of Second Street Repair in Atlantic, had been facing three counts of wire fraud for selling vehicles out of state in California and Virginia and 15 counts of odometer fraud. Under the plea agreement, filed Feb. 21 and accepted last week, Fulk admits that he “knowingly devised a scheme to defraud the individual buyers by replacing the odometer cluster of the used car with another odometer cluster that had lower mileage. Defendant’s scheme to defraud sought to obtain money from the individual buyers by falsely representing the car to have lower mileage than the actual mileage of the car.”
The agreement goes on to state, “(the) Defendant advanced, furthered, and carried out the scheme by transmitting writings and other information by means of a wire communication in interstate commerce when he posted and advertised the used cars with a false mileage amount and inflated price.
The crime carries a maximum sentence of up to 20 years in prison; a maximum fine of $250,000; and a term of supervised release of up to three years. A mandatory special assessment of $100 per count of conviction also must be imposed by the sentencing court. The parties in the case have agreed to a sentencing guideline of between 12 and 18 months and the government has not to advocate for sentence higher than six months in prison — although the actual sentence will be determined by judge who does not have to follow the recommendations.
Sentencing is set for July 9 at 1 p.m.
Original article posted here