Indian Trail Man Pleads Guilty to Trafficking in Counterfeit Airbags

FOR IMMEDIATE RELEASE
CONTACT: Lia Bantavani
MONDAY, OCTOBER 22, 2012
704-338-3140
“http://www.usdoj.gov/usao/ncw
lia.bantavani@usdoj.gov

CHARLOTTE, N.C. – Igor Borodin, 27, of Indian Trail, N.C. pleaded guilty today in U.S. District Court in Charlotte to trafficking in counterfeit airbags, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Borodin also pleaded guilty to delivering and causing to be delivered hazardous material, that being airbags, by air commerce in violation of rules and regulations prescribed by the Secretary of Transportation.

U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), Region IV.

On August 21, 2012, a federal criminal indictment charged Borodin with one count of trafficking and attempting to traffic in counterfeit airbags bearing the registered trademarks of automobile manufacturers, and one count of delivering and causing to be delivered hazardous materials (airbags) to air carriers for transportation in air commerce.

According to filed court documents and related court proceedings, Borodin is part-owner of Krugger Auto, located in Charlotte. On August 16, 2012, law enforcement agents with ICE-HSI’s Charlotte and Chattanooga, Tenn. offices and DOT-OIG agents executed federal search warrants at Krugger Auto and Borodin’s residence in Indian Trail. Court records show that while executing the search warrants, agents recovered 99 counterfeit airbags from Borodin’s business and 1,514 counterfeit airbags from his residence. Court records also show that Borodin had purchased the counterfeit airbags from China, which he then resold through eBay. According to filed documents and court proceedings, the counterfeit airbag shipments ordered by Borodin did not display the legally-required hazardous material warnings when the shipments were transported in air commerce from China to the United States.

The Department of Transportation has classified airbags as Class 9 dangerous goods, and as such they must be classified, documented, packaged, marked and labeled in accordance with the Hazardous Materials Regulations. The transportation of airbags without legally-required warnings of the hazardous material contained in airbag shipments pose a safety risk to all
persons transporting and handling the unmarked hazardous materials.

According to court records, Borodin sold at least an estimated 7,000 counterfeit airbags online, and between February 2011 and May 2012 Borodin earned at least $1.4 million dollars in revenue from the eBay sales of the counterfeit airbags. Independent testing of a counterfeit airbag sold in September 2011 by Borodin through eBay showed that the airbag did not properly
inflate.

“My office will not allow fake airbags to endanger the safety of the drivers in our communities,” said U.S. Attorney Tompkins in making today’s announcement of the guilty plea. “Airbags that do not meet the quality and safety standards of the automobile manufacturers pose a serious threat to human life because they fail to work when they are needed the most, during a
car accident. Earlier this month, the National Highway Traffic Safety Administration warned consumers of the serious threat posed by counterfeit airbags, which range from failure to inflate during a front-end collision, to expelling flames and shrapnel toward car occupants upon deployment. With the help of our law enforcement partners, we will continue to go after those
who distribute counterfeit airbags in the market.”

“Drivers should not have to worry about whether or not their air bags will shoot shrapnel at them in the event of an accident,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “HSI is committed to doing everything we can to keep dangerous and counterfeit substandard safety equipment from entering our marketplace and our cars. We encourage anyone
who believes they may have been a victim of this fraud to visit safercar.gov for more information.”

“Public safety and consumer protection are among our top investigative priorities. These unscrupulous acts are committed against people who do not even realize the danger they have been put in,” said DOT OIG Special Agent in Charge Marlies Gonzalez. “Working with our law enforcement and prosecutorial partners, we will continue to leverage our resources to bring to
justice those who violate the law and risk the lives of others.”

Borodin entered his plea of guilty before U.S. Magistrate Judge David S. Cayer. Count one (trafficking in counterfeit airbags) carries a maximum term of ten years in prison and a $2 million fine. Count two (delivering hazardous material) carries a maximum prison term of five years in prison and a $250,000 fine.

At today’s plea hearing, Judge Cayer also issued a consent order and judgment of forfeiture based on the charges contained in the indictment. Pursuant to the consent order, the Court found that, as a result of his criminal conduct, Borodin obtained $1,743,400 in proceeds which he must forfeit. In addition, the Court ordered forfeiture of numerous specific properties including Borodin’s residence, all of the seized counterfeit airbags, and $60,000 in cash seized from his Indian Trail home.

Borodin has been in local federal custody since his arrest on August 16, 2012. He will remain in custody until his sentencing hearing, which has not been scheduled yet.

The investigation was led by ICE-HSI with the assistance of the DOT-OIG. The prosecution for the government was handled by Assistant U.S. Attorneys Tom O’Malley and Ben Bain-Creed of the U.S. Attorney’s Office in Charlotte.

Posted by Holly Merz

Alleged Trafficker of Counterfeit Automotive Accessories Indicted in Virginia

WASHINGTON – An alleged trafficker of counterfeit automotive accessories was indicted yesterday by a federal grand jury in the Eastern District of Virginia for allegedly participating in a conspiracy to sell to unsuspecting U.S. consumers more than $3 million worth of counterfeit General Motors (GM) and Bavarian Motor Works (BMW) automotive diagnostic devices and other automotive equipment, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Assistant Director Ronald T. Hosko of the FBI’s Criminal Investigative Division and FBI Atlanta Special Agent In Charge Mark Guiliano announced today.

Katiran Lee, 39, an Indonesian national who allegedly sold the counterfeit goods while he was living in Duluth, Ga., was charged with two counts of trafficking in counterfeit goods, four counts of wire fraud and one count of conspiracy to commit wire fraud.

According to the indictment, from August 2008 through December 2011, Lee conspired with manufacturers in the People’s Republic of China (PRC) to sell automotive diagnostic devices bearing counterfeit GM and BMW marks to consumers in the United States. Such diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems. Lee allegedly advertised and sold the diagnostic devices on eBay and through his own website, and had the PRC manufacturers send counterfeit devices bearing unauthorized GM and BMW marks directly to his customers.

According to the indictment, during this same period, Lee also advertised and sold over 35,000 counterfeit programmed keys and key fobs for vehicles produced by GM, BMW and numerous other automotive manufacturers, including Chrysler, Honda, Toyota, Audi, Mercedes Benz, Ford, Infiniti, Land Rover, Mazda, Mitsubishi, Nissan, Peugeot, Renault, Subaru, Suzuki, and Volkswagen. Lee allegedly programmed the keys himself and affixed counterfeit marks to deceive consumers into believing that the products came from the respective automotive manufacturers.

In the indictment, the government is seeking forfeiture of computers, programming equipment and thousands of blank keys and trademarked automotive emblems recovered during a search of Lee’s home on Feb. 22, 2012, and the forfeiture of properties totaling up to $600,000.

The case is being prosecuted by Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and was investigated by the FBI’s Intellectual Property Rights Unit as part of “Operation Engine Newity,” an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and FBI Atlanta.

The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.

The enforcement action announced today is one of many efforts being undertaken by the Department USDOJ: Alleged Trafficker of Counterfeit Automotive Accessories Indicted in Virginia http://www.justice.gov/opa/pr/2012/October/12-crm-1294.html [11/1/2012 2:11:46 PM] 12-1294 Criminal Division of Justice Task Force on Intellectual Property (IP Task Force).

Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work.

The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.

Posted by Gary Mitchell

Janesville Odometer Tampering

Jeff’s Auto Body

A Janesville man faces multiple criminal charges for allegedly rolling back car odometers and then selling those vehicles. 60-year-old Jeff Hagen of “Jeff’s Auto Body” has been charged with 1 count of felony theft by swindle as well as 3 gross misdemeanor counts for reportedly tampering with car odometers to falsely increase vehicle value. Hagen denies the allegations, and is scheduled to make his initial appearance in court on November 27th. He faces up to 5 years in prison and a $10,000 fine.

Original article: http://www.knuj.net/2012/10/janesville-odometer-tampering/

Ausden Clark fined £10,000 (Approximately $16,243 US Dollars)

Following an investigation into a coach company operating as Ausden Clark Ltd, based at Dysart Way in Leicester (UK), it was revealed that maintenance records had apparently been falsified and then signed as accurate by the company director, Mr. Paul Ausden Clark. Mr. Clark was arrested with the assistance of local police officers on Tuesday the 10th of July 2012.

The VOSA led investigation centred upon examining the veracity of the information contained in the periodic maintenance inspection (PMI) records required to be kept for inspection by enforcement officers with the authority to carry out such inspections. It was found that the odometer readings recorded on the PMI sheets did not correspond with the odometer readings recorded on the tachograph records and fuel log sheets bearing the same date as that on the PMI sheet.

Mr. Paul Ausden Clark who appeared at Leicester Crown Court on Thursday 20 September entered a plea of guilty to 10 counts of making a false instrument with intent that it be accepted as genuine, contrary to Sections 1 and 6 of the Forgery and Counterfeiting Act, 1981. In addition to this, he asked for 64 similar counts to be taken into consideration (making 74 in all).

The matter was heard before His Honour Judge Hammond in court number 4 and following mitigation by his counsel was sentenced to a fine of £10,000 and ordered to pay costs in the sum of £17,800. He was allowed 12 months to pay.

Heather Cruickshank, VOSA’s Operations Director said: “The falsification of these maintenance records may well have compromised the road safety of other road users in the event of a crucial component failure in relation to the brakes, steering and suspension, especially in relation to so many falsifications. VOSA is committed to detecting and prosecuting this type of offence, especially by those who are at Director level.”

Original article found at: http://www.hgvuk.com/09/24/ausden-clark-fined-10000/

Tough Questions about whether a man selling a car on-line is guilty of odometer fraud

COBB COUNTY, GA (CBS ATLANTA) –

CBS Atlanta News questioned the current owner of a 1995 Nissan Maxima in Cobb County on Wednesday.

He’s selling the car on Craigslist for $3,500 and with just 140,000 miles.

He bought the car from Stewart Smith a month earlier. Smith said he sold the car with 241,000 miles.

“It’s been 10 years since it had 141,000 miles on it,” Smith said.

In fact, Smith’s Craigslist posting from July included a photograph of the odometer. You can only imagine what he thought when he noticed his old car was for sale again with 100,000 fewer miles.

“My initial thought was with the lower mileage I certainly hope is a typo and apparently as your investigation found out, it is not,” Smith said.

So CBS Atlanta’s Adam Murphy tracked down the new owner and seller of the car to ask him about it.

“Did you commit odometer fraud?” asked CBS Atlanta Reporter Adam Murphy.

“No I did not, I’m not comfortable with the camera please,” the seller said.

“Well I think you have some explaining to do with this vehicle here sir,” Murphy said.

The seller could not explain the change in mileage. Smith, on the other hand, showed us an Emission Report from last August showing the car had well over 200,000 miles on it at the time.

So CBS Atlanta News called the police, but before they could arrive the two men got in another car and drove off. They were last seen driving off in a golden Lexus, license plate number BPR 7817.

“I’m hugely disappointed because obviously there’s criminal intent here with tampering and odometer fraud and misrepresentation,” said Smith.

Cobb police are investigating the incident and they are looking for the Lexus the seller drove off in.

Original article: http://www.cbsatlanta.com/story/19345896/tough-questions-about-whether-a-man-selling-a-car-on-line-is-guilty-of-odometer-fraud

Family Motors faces legal trouble Co-owners face several charges, will appear in court Tuesday.

WEST BURLINGTON – A used vehicle dealership is in legal trouble after an Iowa Department of Transportation inquiry resulted in 14 simple and aggravated misdemeanor charges against two of the owners.

Jon Salvador, a co-owner of Family Motors, 1013 W. Agency Road, is charged with seven simple misdemeanors and five aggravated misdemeanors, ranging from the sale of vehicles without titles to failure to maintain odometer records, according to Maj. Paul Steier of the IDOT Motor Vehicle Enforcement Division.

The other owner, Dan Wenig, also is charged with failure to maintain odometer records and failure to take possession of five vehicle titles prior to sale, an aggravated misdemeanor and a simple misdemeanor, respectively.

Salvador and Wenig will make separate initial appearances at 1 p.m. and 2 p.m., respectively, Tuesday in Des Moines County Associate Court.

The brothers-in-law and their wives co-own the business, hence its name, though neither of the women face charges after the IDOT investigation.

Wenig declined to comment, but Salvador denied he did anything illegal and is confident he will be cleared in court.

“A lot of those infractions and citations are just trumped up, ridiculous, clerical errors. Not a big deal,” he said.

Of Salvador’s simple misdemeanor charges, two are for improper issuance of “Registration Applied For” cards to vehicle purchasers who did not pay the requisite tax and fees associated with the card. The cards are issued to purchasers who do not have plates for their vehicles at the time of purchase.

“(Dealers) can only issue those if they collect the tax, title and license fee,” Steier said, adding depending on the circumstances and number of occurrences, IDOT can regard such breaches of protocol as fairly serious offenses.

“The dealer fills it out, so it’s kind of an honor system that the dealer is doing it correctly,” Steier said. “So when they abuse that privilege, because it is a privilege to be able to issue those, we look at that as a pretty serious issue. Those ‘Registration Applied For’ cards are very valuable documents, because it gives you the ability to operate your car on the highway.”

Salvador also is charged with four instances of improperly handling vehicle titles, ranging from obtaining vehicles without titles and offering them for consignment sale, to failure to deliver titles upon the sale of a vehicle. The charges are simple misdemeanors, which, according to Steier, are clearly prohibited by Iowa law.

“A dealer, by Iowa law, is required to have the title assigned to them to show proof of ownership,” Steier said. “When you go to buy the vehicle, you should have confidence that the dealer is the rightful owner and that they’re not consigning it for someone else.”

Consignment sales are illegal under Iowa law, he added.

“The bottom line is the title has to be assigned to the dealership if it’s in their lot,” Steier said, noting the inclusion of titles in vehicle sales is a basic protection to consumers.

Steier said in some instances the failure to obtain titles for vehicles can be the result of clerical error, though in other cases it can be done purposefully. Taking legal action is IDOT’s way of making sure the issue doesn’t become a larger problem, Steier said.

“We want to negate that or stop that from happening up front,” Steier said.

Salvador said in many cases, the titles for his vehicles were not immediately included by the auction houses from which they were purchased.

An additional simple misdemeanor charge of failure to maintain plate records also has been leveled against Salvador. Iowa Code section 321.62 states dealerships are required to keep written records of special plates used on vehicles that pass through their lots.

According to court documents, Family Motors was issued 12 such special plates, 11 of which have no record as to their location or current usage.

Salvador’s five aggravated misdemeanor charges stem from a failure to maintain odometer records on certain vehicles, which Iowa code classifies as fraudulent practices.

“That’s just a step below a felony,” Steier said.

Several odometer statements on certain vehicles at Family Motors were left blank, which Steier said raises suspicions some of them may have been tampered with. Misleading customers about the true mileage of vehicles by leaving the odometer records blank is a serious offense in the IDOT’s eyes, Steier said.

“It’s suspicious, because it would lead one, at least the investigators in our office, to maybe look a little further,” he said. “Why is that? Why are they not filling those out? Because if it’s not documented at the time of sale, that means that vehicle could be used by the dealer for an extended period of time and potentially could open up the possibility for odometer tampering.”

Salvador contests the IDOT’s claim, pointing out mileages automatically are included on the back of every vehicle title. Salvador said the IDOT took issue with the exclusion of additional mileage records, which he added are not included in vehicles that are 10 years old or older.

Regardless, Steier said the odometer records were not kept to IDOT standards.

“Obviously, that’s something that will be contested in court, I’m sure,” he said.

Wenig is charged with an aggravated misdemeanor count of failure to maintain odometer records, as well as one simple misdemeanor charge of failure to obtain the title from five vehicles prior to offering them up for sale.

Des Moines County Attorney Pat Jackson, whose office will prosecute the charges, said each charge could result in a fine ranging from $65 to $625.

Original article: http://www.thehawkeye.com/story/Family-Motors-072812

Probe of dealer who sold cars with rolled-back odometers brings more complaints from customers

Odometer on Dashboard SPRINGFIELD, Mo. — Excel Auto Group LLC is still under investigation by the state while a lawsuit against it works its way through a Greene County circuit court.

Documents from the Missouri Secretary of State’s office show Ashley Bolton, the owner of Excel Auto Group, has also operated under B&B Motors.

Scores of people continue to call and e-mail saying they too have found out their odometers have been tampered with. You can go to AutoCheck.com or Carfax.com and run your own check to see if you have been a victim. If you have, you can file a report with the Attorney General’s Office at 1-800-392-8222. If you want to speak with someone in Springfield, you can call the Missouri Department of Revenue at (417) 895-6429.

The Attorney General’s Office is busy with the civil investigation into Bolton. No one has said if there’s a criminal investigation of Bolton or Excel Auto Group.

Original article: http://www.ky3.com/news/ky3-excell-new-details-in-the-investigation-of-springfield-car-dealership-that-was-allegedly-rolling-back-odometers-20120619,0,1026542.story

High-Flying Auto Dealer Employee Steals $10M For Luxuries

High-Flying Auto Dealer Employee Steals $10M For Luxuries (ABC News)

Patricia Smith, the former controller of an auto dealership in Pennsylvania, is headed to jail after embezzling $10 million from her former boss in a stunning case of a trusted employee looting the business then squandering the cash on luxuries.

Smith, who worked at Baierl Acura located in Wexford, Pa., an upper-middle class suburb of Pittsburgh, was convicted of systematically stealing for seven years–some $4,000 a day on average–for private jet travel, special trips to the theatre, fancy clothes and other goods, according to the court.

A costume fitting on Broadway? Check. Super Bowl Tickets? Check. There were even trips to the Vatican using stolen money. Smith spared no expense for herself or her family on the company’s dime, according to reports from court. The jet charters alone totaled $1.8 million for the high-flying bookkeeper, who officially made about $50,000 a year from the dealership.

According to Shannon Pierre, of ABC Pittsburgh affiliate WTAE, who reported on the story from court, Smith’s reason for her crime spree was she felt like a “horrible daughter, wife, mother and friend” and the gifts were a way to “earn their love” because she wanted to see “what happiness looks like.”

An attorney for Smith did not return our request for comment. News reports indicated that Smith told her family and friends she got rich investing in airline stock.

Now, the woman nearing retirement age must serve 78 months in prison, three years of probation, and pay restitution of $10,349,569.14 for the fortune she obtained by making more than 800 money transfers from the Baierl Acura’s coffers to her personal accounts.

“We’re glad that justice has been served and this matter is now behind us. Despite the amount of funds taken over time, there were no adverse impacts to our daily operations. Our business is doing well and we have adopted stronger measures to prevent such a crime from ever occurring again,” Lee Baierl, CEO of Baierl Automotives said in a statement to ABC News.

The scheming employee was able to electronically transfer funds from the company’s online account to her own personal account and use the funds to buy four homes, 10 vehicles, Louis Vuitton luggage, jewelry, $30,000 in pre-paid travel funds and stow away more than $20,000 in savings, court records show.

But, that’s not all. According to information provided to the court, the shopping list was long and extravagant. Smith paid a $1.8 million worth of charges to American Express for private jet charters; $715,000 for commercial airfare; $600,000 for lodging, cruise charges and misc. travel expenses; $32,500 for a luncheon for six people prepared by Food Network star Ina Garten at her barn in East Hampton, NY; $5,000 for “The Vatican Package,” which included Mass in Papal Audience with VIP seating, plus airfare for four, VIP tour of the Vatican Museum with a private tour guide, and a private tour of the Sistine Chapel alone with family before it is open to the public; and $2,500 for a Phantom of the $2,500 for a Phantom of the Opera experience, including costume fitting, wig fitting, escorted on-stage during the Hannibal Opera sequence, and four seats for the performance; $10,000 for a Ralph Lauren showroom tour and suit; $52, 500 for six club level tickets to the 2011 Super Bowl in Dallas; $5,600 for autographed first America edition of Harry Potter and the Order of the Phoenix with signed book plates by J.K. Rowling, $11,100 dinner with Kevin Spacey after his performance in Richard III.

The 58-year-old, who pled guilty, was hoping for a light sentence, based on reports.

Based on records obtained by ABC News, United States Attorney said Smith “devised, and intended to devise, a scheme and artifice to defraud and for obtaining money and property by means of material false and fraudulent pretenses, representations, and promises, well knowing at the time that the pretenses and promises were false and fraudulent when made.”

Only 1/10 of the amount is expected to be recovered. Authorities said she covered up the thefts with a series of fake transactions as well as listing phantom cars in inventory so they could be recorded as assets.

According to the U.S. Attorney’s Office in Pittsburgh, “the office will be able to recoup a portion of the financial loss. The amount stated in Court was $1 million.”

Patricia Smith will begin serving her sentence in July.

Original article: http://gma.yahoo.com/high-flying-auto-dealer-employee-steals-10m-luxuries-171018665–abc-news-money.html

State shuts down Springfield car dealer during investigation into rolling back odometers

SPRINGFIELD, Mo.– A KY3 investigation leads to an investigation by Missouri’s Attorney General’s office.

A used car dealership in Springfield — Excel Auto Group, LLC — near Scenic and Walnut Lawn — can no longer operate after being raided on Thursday by the Department of Revenue and the AG’s office. At issue– complaints about rolling back odometers.

Julie Schiffner started her search for a car online, and found what she thought was the perfect vehicle for the perfect price.

“We asked for a Carfax and he provided it and so we would never have thought to go spend the money then to double check and make sure the one he provided us was correct,” Schiffner said.

So they bought it, a 2002 Toyota Sequoia.

They had it for two weeks when they got some bad news that turned out to be a blessing in disguise.

A close friend just happened to run an independent Carfax check for them.

“He checked it to see if the timing belt had ever been changed and that’s when we realized that the mileage was completely wrong,” she said.

One hundred thousand miles wrong.

The Schiffners’ took the car back to Excel, and say they spoke with owner Ashley Bolton, who gave them their money back.

But, he gave no apology, and no explanation.

Julie turned to KY3 for help.

We ran the numbers for ourselves. Six VIN numbers from the cars listed on Excel’s Web-site, according to Carfax, two of them had mileage numbers listed way below actual mileage — one was more than 140-thousand miles off.

So we went to ask Ashley Bolton what’s going on at his business near Scenic and Walnut Lawn.

He didn’t answer our questions, and kicked us off his property. We had to leave, but investigators from the Attorney General’s office and the Department of Revenue didn’t.

Following a call from KY3 News, authorities were on scene, checking every vehicle’s mileage.

It’s a story with a happy outcome for Julie Schiffner and her family, and a lesson for everyone else.

“I will pay the 30 or 40 dollars to Carfax or Auto Check and run it myself and not trust,” Schiffner said.

The filing from the AG is a temporary restraining order against the business. It prevents Bolton from selling any more cars during the investigation, and won’t allow him to move any cars off his lot. We will have updates as they become available.

Orginal article: http://www.ky3.com/news/ky3-state-investigates-springfield-used-car-dealer-20120614,0,6470807.story

Buyer beware — odometer fraud on the rise

Think that odometer fraud is a crime of the past? Digital odometers were supposed to make altering a car’s mileage harder. And they did – for a while. But new gadgets for turning back odometers are now available on the internet — and shockingly easy to use.

An eye-opening undercover investigative report by CBS channel 2 in Los Angeles shows how it’s done — in a scam that has attracted the attention of authorities.

“CBS 2 investigation uncovers odometer fraud possibly affecting thousands of consumers”

Odometer fraud remains a serious crime in the U.S., robbing consumers who pay thousands more than a car is really worth. Plus they face costly repairs they didn’t anticipate. Adding insult to injury, warranties are usually void on vehicles with altered odometers. So even if you buy a car that was sold with a warranty, you may be stuck paying out of pocket for repairs.

How can you avoid odometer fraud? Vehicle history reports don’t always capture mileage discrepancies. So be sure to get a reliable auto mechanic to thoroughly inspect any used car you’re interested in buying, before you agree to anything. An altered odometer may register a trouble code that a qualified mechanic can detect, using specialized diagnostic equipment. Also insist on seeing all the work orders for past repairs, and contact the repair shop to confirm the mileage.

The average mileage for most cars is around 12,000 a year. Be especially suspicious when sellers claim a car has significantly lower mileage.

Original article: http://carconsumers.org/blog/2012/06/06/buyer-beware-odometer-fraud-on-the-rise/

NOTFEA

Working to deter odometer and title fraud