Mileage rip-off hits thousands of used car buyers

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WIND UP: Used car buyers have been warned to beware shonky sellers who wind back odometers. Source: The Courier-Mail

USED car buyers have been warned to beware of shonky sellers winding back odometers, with a report revealing tens of thousands of used cars have been “clocked”.

The illegal practice is most common in South Australia, Tasmania and Queensland where one in 100 vehicles has been tampered with, according to consumer vehicle research site carhistory.com.au

The site found that in the year to March, just under 1 per cent of used cars it checked had odometers wound back which, if representative of the national used car market, meant tens of thousands of vehicles were being sold under false pretences.

Carhistory boss David Scognamiglio said the report indicated that every state had groups of shonky sellers who had evaded detection and prosecution for misrepresenting odometer readings.

“Many sellers fail to provide statutory warranties and falsify log books and other documents to car buyers,” he said.

“No one wants to buy a car to find out in the next few months that they’ve been ripped off, the warranty is void or they are having issues due to the vehicle’s extensive use.”

Individual offenders face up to two years in jail and fines of $40,000 to $60,000, depending on the state, while organisations face fines of about $200,000.

Two years ago, Operation Turner collected $400,000 in fines from 13 Queensland offenders detected, Mr Scognamiglio said.

Carhistory’s new report uncovered dozens of shocking examples of fraud, including:

A Lexus coupe found by a buyer to have been wound back 70,000km.

Another motorist lost their $50 deposit after backing out of a sale when they discovered a repairable write-off that should have had a 190,000km reading showed only 125,000km during a test drive.

Mr Scognamiglio warned “clocking” could even endanger lives, with mechanical issues more likely to be overlooked as unsuspecting owners were misinformed about the service history of their car.

“Owners are clearly getting ripped off, paying too much for their car, as well as having to deal with more common breakdowns due to extra wear and tear of their vehicles,” he said.

“The best way to protect yourself from getting ripped off is to get an independent inspection by a mechanic, check logbooks, do a finance check and also get a car history check, which is the only vehicle report that covers odometer readings.”

Mr Scognamiglio also warned that if buyers did not check the odometer reading when they bought a car, they could be accused of being the “clocker” if they later sold the vehicle.

He said modern, digital odometers were not tamper-proof.

http://www.couriermail.com.au/news/queensland/mileage-rip-off-hits-thousands/story-e6freoof-1226336541617 

Baton Rouge, Louisiana, Man Pleads Guilty to Odometer Tampering Charges

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Dept of Justice

FOR IMMEDIATE RELEASE Thursday, May 3, 2012

Beau Michael Guidry of Baton Rouge, La., pleaded guilty today in the U.S. District Court for the Middle District of Louisiana to three counts of odometer tampering.

Guidry, owner of Affordable Imports in Denham Springs, La., purchased high-mileage motor vehicles both online, through eBay, as well as from wholesale automobile auctions in Louisiana, Mississippi and Texas.  The vehicles’ odometers were then rolled back as much as 147,000 miles.  Guidry subsequently resold the vehicles at his lot in Denham Springs or through eBay to unsuspecting purchasers.

Many vehicles were more than 10 years old when Guidry sold them.  Because of the age of the cars, Guidry was not required to sign a disclosure certifying as accurate the mileage on the vehicles that were more than 10 years old.  However, each time he altered an odometer with intent to change the mileage on the odometer, he violated federal law.

“Just because a car dealer does not have to certify the mileage on cars he sells, that does not give him a license to roll back odometers,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division.  “It is equally fraudulent to roll back a so-called ‘exempt’ vehicle as rolling back a non-exempt vehicle.  With cars remaining in service longer, people rely on vehicles older than 10 years for basic transportation.  These citizens are not fair game for crooked car dealers.”

“The odometer tampering statutes were put in place to protect consumers who pay more for used cars, and suffer other financial and potential mechanical harm when odometers on cars are rolled back,” said U.S. Attorney Donald J. Cazayoux, Jr. of the Middle District of Louisiana.  “The Department of Justice is committed to putting in prison those who steal from consumers and put them in danger by selling cars with rolled back odometers.”

The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) investigated this case.  The case was prosecuted by Justice Department trial attorney David Sullivan of the Civil Division’s Consumer Protection Branch.

Ways to Help Avoid Being Victimized by Odometer Fraud

  • Have a mechanic you trust check out the car.  This will cost money, but it can save much more.
  • Look for loose screws or scratch marks around the dashboard.  This is pertinent primarily to mechanical odometers which can be manipulated with tools.
  • Also on mechanical odometers, check to make sure that the digits in the odometer are lined up straight–particularly the 10,000 digit.
  • Test drive the car and see if the speedometer sticks.
  • Check for service stickers inside the door or under the hood that may give the actual mileage.  Odometer tamperers try to find these as well, but sometimes miss one.
  • Look in the owner’s manual to see if maintenance was listed, or if pages that might have shown high mileage were removed.
  • Ask the dealer whether a computer warranty check has been run on the car.
  • Use a commercially available computer search program that checks for mileage alterations.  Some car dealers will give you one of these for free if you ask for it.  While this is an important step to take, it is not foolproof by any means because not all high mileages are recorded on paperwork that makes its way to these databases.
  • Ask to see the title documents and look to see if the mileage reading on the documents has been altered.
  • Look to see if the steering wheel was worn smooth.  Look for other signs of excessive wear on the arm-rest, the floor mats, the pedals for the brakes and gas, and the area around the ignition.  If these items were recently replaced, that could also indicate efforts to hide the car’s true use and mileage.
  • Don’t assume that mileage is accurate just because the vehicle has an electronic odometer.

Case investigated by USDOT-NHTSA Special Agent Wendell Espeland

See article at: http://www.justice.gov/opa/pr/2012/May/12-civ-578.html

Posted by Gary Mithell

Flier for illegal odometer service leads to arrests

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Craig Brothers Mug shotsAccording to reports, the Auto Theft Unit learned that fliers were being placed on vehicles at an auction that advertised odometer services. The flier read, “Odometer services, digital or analog, we adjust, correct or replace, any odometer to any miles, we come to you.”

The flier included two phone numbers that deputies discovered belonged to Douglas Craig and his son Austin Craig.

In April, an undercover officer called one of the phone numbers and spoke with Douglas. The deputy arranged to meet with Douglas to roll back the odometer of a car with 100,000 miles, according to reports.

Douglas told the deputy it would cost $125 for the service, reports said.

In mid April, the undercover deputy made contact with Douglas again. He agreed to meet in the Walmart parking lot later that day, reports said.

Douglas and Austin arrived to Walmart driving a silver 2002 Chevrolet Cavalier.

When the deputy asked Douglas about how easy it was to change the odometer readings, Douglas offered to show how easy it was by changing the mileage on his Cavalier, reports said.

Austin plugged a device into a service port of the Cavalier and changed the odometer from 5,000 miles to 60,031 miles, reports said.

When Douglas and Austin walked to the Cobalt with the device, they were arrested and charged with two counts of tampering with an odometer.

http://www.nbc-2.com/story/17525330/2012/04/18/men-arrested-for-tampering-with-odometers

End-of-contract vehicle ‘clocking’ on increase

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Odometer on DashboardA growing number of vehicles are being handed back at the end of a contract hire or personal contract purchase (PCP) agreement having been clocked.

Fleets and individuals eager to avoid excess mileage charges are turning to mileage correction companies to clock the vehicle before they return it.

And the problem is causing so much concern within the industry that the Vehicle Remarketing Association (VRA) is calling for companies that undertake the procedure to be better regulated.

A string of businesses advertise their services online from £50 and, while problems with an odometer may require the use of their services legitimately, many companies are turning to them to avoid end-of-contract charges.

Used car history expert HPI says it has seen the number of used cars showing an ‘inconsistent mileage’ increase by more than 10% since 2007. It identified more than one million clocked cars in 2011 – one in every 20 it checked.

An employee at a major leasing company, who wished to remain anonymous, said: “How prevalent the problem is it’s difficult to say, but we know it is happening and it appears to be a growing issue.

“At the end of 2008/09 there were a lot of brokers doing two-year, 20,000 mile, non-
maintained contracts on higher-value vehicles which looked very attractive from a monthly rental perspective.

“It appears the problem started there with people wanting to avoid end-of-contract excess mileage charges.

“I’ve even heard a guy in my local pub openly admit to clocking the mileage on vans he’s operating every year before the annual service so this clearly isn’t an isolated problem.”

David Tomes, senior investigator at iCompli, told Fleet News he had analysed 16 cars believed to have been leased to an accident management company on a 20,000-mile contract.

They were returned to the leasing company with 18,000 miles on the clock, yet they had travelled at least 100,000 miles and could have been used as private hire cars.

He added: “We are certainly being called on more and more.”

The issue for the leasing industry is that they can lose thousands of pounds when they come to sell the clocked car compared to its written- down value and will incur further costs if they take the driver to court.

In addition, the decision to follow up these issues is treated differently from one police force to another, leaving the finance company or leasing company in most cases to spend their own time and money prosecuting the driver.

“The leasing companies are always considered the ‘baddies’ by Trading Standards as they are the experts, but in reality they are the victims and some people now seem to think that it is an acceptable practice,” said the leasing industry employee.

“However, there is no easy or cost-effective way to check all vehicles at the end of the contract and what is really needed is for mileage correction companies to be properly regulated and licensed.”

Regulation of so-called mileage correction companies would help restrict alterations to a vehicle’s mileage to the few situations where it is legitimate.

The law states that it is the driver’s responsibility to declare the vehicle’s mileage if it has been changed when they sell a car or hand it back to the finance company. If they do not follow this process, they are breaking the law.

However, the process is open to abuse and unless some regulation of clocking companies is introduced this issue is likely to worsen.

“Mileage correction companies should be licensed to operate and then regulated to ensure a vehicle’s mileage change is directly reported to the DVLA,” said John Davies, chairman of the VRA.

http://www.fleetnews.co.uk/news/2012/4/17/end-of-contract-vehicle-clocking-on-increase/43234/

Senate passes highway bill

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The bill would also dramatically hike fines for odometer fraud to up to $1 million from a current maximum of $100,000 for some fraudulent actions.

The U.S. Senate on Wednesday approved a two-year, $109 billion bill to pay for highway construction and boost auto safety regulations.

The bill was approved by a 74-22 vote and now goes to the House.

Sen. Carl Levin, D-Detroit, praised the bill, saying it “will improve the mobility of people and commerce while reducing traffic congestion and improving air quality.”

Levin said the bill will help state transportation agencies that “need to be able to do long-term planning, and a two-year bill helps that cause, and is surely better than the short-term extensions we have been living under.”

Levin said Michigan will get more than $1.1 billion per year for two years for highways, “slightly more than under the current bill.” Under the transit formulas, Michigan will get $131.3 million per year for two years in mass transit, “a little more than we got last time in formula funds.”

In 1978, Michigan was getting around 75 cents back on every dollar in federal gas taxes paid. That went up to about 80 cents in 1991, 90.5 cents in 1998 and 92 cents in 2005, Levin said. “Unfortunately, there simply isn’t enough money this time around to improve the rate of return for donor states,” Levin said.

The current authorization to collect the 18.4-cent federal gasoline tax expires on March 30; that tax currently raises about $100 million a day to repair the nation’s roads and fund other projects.

White House Press Secretary Jay Carney praised the bill’s passage.

“We are pleased that Senators have continued the tradition of working across the aisle to pass a bill that keeps Americans at work maintaining our nation’s vital infrastructure and provides states and localities the certainty they need to plan ahead. We are hopeful that the House will move swiftly and in similarly bipartisan fashion to do the same,” he said.

On Tuesday, the Senate rejected an amendment sponsored by Sen. Debbie Stabenow, D-Lansing, that would have extended tax breaks for many clean energy efforts — including cellulosic ethanol and biodiesel — that would have cost about $12 billion. The Senate split 49-49 on the measure, but it needed 60 yes votes to clear a procedural hurdle. “This is about whether we are going to have an American energy policy,” she said.

The Senate also rejected a bid to boost incentives for natural gas vehicles.

Both Levin and Stabenow voted for the overall bill.

Senate leaders agreed last week not to consider an amendment filed by Sen Bob Corker, R-Tenn., that would have taken the remaining funding in the $25 billion auto factory retooling program and used it to fix roads. A fight over some of the funds — known as the Advanced Vehicle Technology Manufacturing program — in September nearly led to a government shutdown.

Democrats beat back attempts to cut funds. Rep. Gary Peters, D-Bloomfield Township, said in an interview last week that he was disappointed that the Energy Department hasn’t awarded more of the $16 billion in unused loans — and questioned the department’s stance in some loan talks — especially Chrysler Group LLC.

“It does seem like (the Energy Department) has moved the goal posts,” Peters said.

Automakers are urging Congress to reject the provision in the Senate bill that would hike fines to $250 million for failing to recall vehicles properly, up from about $17 million.

Under the bill, aimed at reforming the National Highway Traffic Safety Administration, the maximum fines for manufacturers that delay recalls would be raised dramatically.

The Senate bill also mandates safety belts on all commercial buses. “Too many lives have been wasted in tragedies that are entirely preventable because of poor bus safety standards. Basic safety standards, such as requiring seat belts, driver training, and strengthening safety inspections, will go a long way in making our roads safer for everyone — not just bus occupants,” said Sen. Kay Bailey Hutchison, R-Texas said.

But a House version of a highway bill has no new auto safety provisions. Speaker John Boehner said the House will not consider the five-year, $260 billion proposal to fund highways, but will consider a shorter term bill. Among the controversial provisions in the Republican bill was to end a dedicated funding program for mass transit.

For more than a year, proponents have pushed Congress to strengthen auto safety measures in the wake of sudden acceleration concerns in Toyota Motor Corp. vehicles. The provisions, sponsored by Sens. Mark Pryor, D-Ark., and Jay Rockefeller, D-W. Va., would not take effect until at least one year after passage.

The measure would also require automakers to prevent drivers from being able to see “broadcast television, movies, video games and other forms of similar visual entertainment” while driving.

A coalition of groups — including the Alliance of Automobile Manufacturers, Association of Global Automakers, National Association of Manufacturers and American International Automobile Dealers Association — urged the Senate to reject hiking the recall fines.

The fines are rarely used. Toyota paid nearly $50 million to settle three NHTSA complaints that it delayed recalls, while last month BMW AG paid $3 million after NHTSA said a review of 16 recall campaigns in 2010 showed it hadn’t notified the government within the required five days after determining a safety defect.

Automakers have questioned the need for new auto safety measures. They note that in 2010, the number of road deaths fell to its lowest number since 1949 — less than 33,000.

The bill would also dramatically hike fines for odometer fraud to up to $1 million from a current maximum of $100,000 for some fraudulent actions. It would require the study of rental truck crashes.

The auto safety bill would seek to improve the vehicle recall database and website. It would create a hotline for mechanics, dealers and auto workers to call to make anonymous complaints of safety problems with vehicles.

It would also require new regulations on pedal placement, push button ignition and electronic performance issues.

By David Shepardson – Detroit News Washington Bureau – http://www.detroitnews.com/article/20120314/POLITICS03/203140413/1121/AUTO0102/Senate-passes-highway-bill

Dealer Says Odometer-Rollback Charges Are Due to Mechanical ‘Glitch’

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The Daily Times of Deleware, Pa., reported this past weekend that one local used-car dealer charged with rolling back the odometer on a 1998 Jeep Cherokee has a different story to tell.

The dealer and his attorney are claiming that a mechanical defect was the cause of the erroneous mileage reading.

The report stated that David Gill, general manager of DiFilippo Brothers Motor Cars, is being charged with alteration of true mileage statement, deceptive business practices and the misdemeanor charge of tampering with public records.

And Gill’s attorney, Michael Malloy, disputes the allegations, blaming the odometer readings on what he called a “mechanical glitch.”

Highlighting the background on the case, Gill sold a Jeep Cherokee to customer Rodney Gilmore in December 2010 for $9,295, with an odometer that showed 67,189 miles — according to the affidavit of probable cause written by Pennsylvania State Trooper Louis Vitali.

But the PennDOT records painted a different picture: the records obtained by Vitali showed the Jeep’s last reported mileage as 84,210, reported the Daily Times.

Malloy apparently said, “We know for a fact now the (odometer) is now back further than when the complainant drove it.

“We can’t say why it’s happening,” he was reported saying.

But according to the affidavit, Gilmore ran a Carfax report on the Jeep shortly after he bought the unit. And this report showed apparently showed the mileage on the vehicle was much higher.

“Gilmore called the dealership and spoke with a woman who confirmed the mileage on the title was in fact 84,210, not 67,189, according to the affidavit,” the Daily Times reported.

But Gill claims that on the date of sale, the vehicle title was unavailable and he took the mileage from the odometer to complete the paperwork.

According to a report from Vitali, Gill also told him the mileage on the paperwork for the sale was a typing error.

And Malloy noted in a letter sent to Deputy District Attorney Stephanie Wills dated Feb. 3,  when Gilmore purchased the Jeep, the mileage was 67,189.

But when he returned it to the dealer three months later, the odometer read 68,036, indicating the Jeep had been driven approximately 10 miles a day over three months, according to the Daily Times report.

Though the case is still in the works, at the direction of the state police, the Jeep was parked at DeFilippo’s lot on March 10, 2011 and was not moved or even started until Jan. 12, 2012, which was the day of Gill’s arraignment, Malloy said in his letter.

When the car was started again, the odometer recorded 67,152, according to Malloy.

“It lost approximately 1,000 miles on the odometer on Jan. 12, 2012 without moving a mile,” Malloy was reported saying in his letter to the deputy district attorney.

Perhaps supporting Malloy’s claim concerning mechanical defects, he had the odometer tested and video recorded the mileage at the beginning of the test.

Then, the Jeep’s battery was allowed to go dead. When the vehicle was fired up again, the odometer had a different reading, the Daily Times reported.

Gill went before Magisterial District Judge Jack Lippart on Feb. 27 for a preliminary hearing.

He is scheduled for formal arraignment on March 29.

Posted by Casey Edds

Five Arrested in Organized Crime Ring

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On Friday, the Pinellas County Sheriff’s Office announced it had arrested five men in an $3.1 million racketeering scheme. The Sheriff’s Office also said it is still searching for five more suspects.

Tihomir Botchev

Botchev was the ‘ring leader’ according to the Sheriff’s Office. He was arrested Thursday. Credit William Mansell

Botchev was the ‘ring leader’ according to the Sheriff’s Office. He was arrested Thursday. Credit William MansellIn 2008 the Pinellas County Sheriff’s Office began an investigation into a $3.1 million racketeering scheme involving luxury car and credit card fraud.

Five suspects were arrested Thursday in what the Sheriff’s Office is calling an organized crime ring. Five more suspects are still at-large.

Arrested Suspects:

  • Tihomir Botchev, 32, of 291 Keating Drive, Largo
  • Ivan Petrov, 31, of 2461 61st Lane, St. Petersburg
  • Georgi Angelov, 28, of 11440 8th Way N., St. Petersburg
  • Martin Jordanov, 27, of 4046 11th Street N, St. Peterburg
  • Lubomir Sandov, 47, 600 Brookside Drive, Clearwater
“Thanks to a partnership among national, state and local agencies, we have brought down a multi-million dollar fraud ring that has targeted local businesses in the Tampa Bay region, said Florida Attorney General Pam Bondi in a news release. “I am grateful to the Secret Service and the Pinellas County Sheriff’s Office for their dedication to stopping this criminal operation.”

According to investigators, the suspects engaged in obtaining lines of credit in the form of credit card accounts and vehicle loans by providing false and/or inflated information to the lending institutions; and subsequently defaulting on those lines of credit.

The credit card activities centered on the creation of multiple fraudulent credit card accounts, investigators said. The suspects would then use the credit cards to make high-dollar purchases through collusive or shell corporations before the accounts went into default.

While the credit card applicants listed on the merchant account applications were listed in the names of several of the above listed suspects, the majority of the depository accounts were linked and funneled to suspect Botchev.

According to the Sheriff’s Office report, detectives say Botchev arranged for each of the suspects to be affiliated with a Florida or Illinois registered corporation for the purpose of utilizing said corporation as employment verification on the applications submitted to the financial institutions; and to establish a merchant account in order to conduct the credit card transactions.

On the credit card side, the suspects are responsible for an estimated $1 million loss to the financial institutions.

According to detectives, the funds from the fraudulent credit card transactions were then used to finance the vehicle fraud activities.

Detectives say after the suspects obtained a vehicle loan, the suspects arranged for the high-end vehicles purchased with said loan to be shipped overseas where the vehicles were sold.

According to the report, the suspects accomplished this by titling and registering the vehicles in the State of Illinois; using the shell corporations to uttered satisfaction of leans, thus enabling the suspects to obtain the clear vehicle titles needed to ship the cars overseas. The luxury vehicles include BMWs, Lexus’, Audis, Infinitis, Mercedes Benz’ and Acuras.

Most have been recovered in the U.S. and Lithuania. At this time detectives say the scheme included 37 vehicles and 46 transactions.

Botchev, the Sheriff’s Office said, appears to be the central figure in the organized scheme to obtain the vehicles through fraudulent means and then ship them overseas.

Investigators say he was also able to obtain duplicate titles on vehicles he had previously owned and registered in the State of Florida and had other suspects in the organization obtain a second loan on vehicles already shipped out of the country.

Suspects not arrested on thus far will be sought in the days and weeks to come.

“The successful investigation and outcome of this case could not have been possible without the team work and partnerships we have established with the U.S. Secret Service, the Florida Attorney General, Office of the Statewide prosecutor and Chicago area law enforcement officials,” said Pinellas County Sheriff Bob Gualtieri in a news release.

John Joyce, Special Agent in Charge, Tampa Field Office, and U.S. Secret Service praised the long-standing partnership with the Pinellas County Sheriff’s Office to address all forms of financial criminal activity.

“Through use of a well-developed financial crimes task force, our agencies have demonstrated the value of force multiplication affording investigative benefit to both agencies,” Joyce said in a news release. “By developing and sharing information and pooling our investigative resources, our agencies have put a significant dent into the illegal workings of Mr. Botchev and other members of his organized criminal group.”

Posted by Holly Merz

The dangers of buying a “clocked car”

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Over 1 million cars checked by HPI had a mileage discrepancy in 2011

www.hpicheck.com

Consumers need to protect themselves from the risk of buying a clocked car, warns vehicle history expert HPI.  Latest figures from HPI reveal an increase of more than 10% over the last 5 years in the number of used cars it checks recording a mileage discrepancy.  According to figures from HPI’s National Mileage Register (NMR), over 1 million cars it checked in 2011 had an inconsistent mileage reading, leaving buyers vulnerable to paying over the odds for a vehicle.

An HPI Check includes a mileage check as standard, offering used car buyers a safeguard against the growing danger of clocking. “It is simply too easy for sellers to hike up the value of a car by turning back the miles on the odometer, making clocking one of the biggest risks for consumers,” explains Kristian Welch, Consumer Director for HPI.

“Worryingly, we are seeing a new trend whereby some owners are clocking a car regularly throughout their ownership, making it even harder for buyers to establish if a vehicle’s mileage is correct.  We also know there are people who are returning leased cars to the leasing company, having adjusted the vehicle’s mileage so that they meet the terms of their PCP (personal contract plan/leasing) agreement, which is further adding to the problem. With 1 in 20 cars we check recording a discrepant mileage, buyers need to take steps to be sure their potential purchase really is everything it seems.”

Modern digital odometers make it easier than ever for clocked vehicles to evade detection. Whilst altering a car’s mileage is not illegal itself, not declaring that mileage change to a potential buyer is.  Clocking a vehicle can add potentially hundreds of pounds to the perceived value of a car. The real worry is that unsuspecting buyers could be saddled with higher running costs further down the line, as the vehicle is likely to have more general wear and tear than expected, and may have missed vital servicing intervals.

An HPI Check is the best way for consumers to protect themselves from fraudsters looking to make a fast profit. Using information that dates back to 1997, HPI’s National Mileage Register (NMR) contains over 135 million readings and is adopted as standard by leading motor retailers and manufacturers. This brings buyers extra assurance that a vehicle checked by HPI has not been clocked.  The HPI Check also offers a £30,000 Guarantee in the event of the information it provides being inaccurate, offering added peace of mind to used car buyers.

Kristian Welch concludes, “It’s alarming to think that people are exploiting new ways to reduce the mileage on a vehicle in order to put hundreds or even thousands onto the price tag. Unsuspecting buyers are being caught out every day, but they don’t need to be. HPI always has the most comprehensive mileage data available, so if the seller has clocked a vehicle, the HPI Check will know.”

Posted by Gary Mitchell

Georgia court orders $11,474 in restitution for car odometer fraud

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WILDER,v.THE STATE.A11A2223.

Court of Appeals of Georgia.

Decided: March 19, 2012.

DOYLE, Presiding Judge.

Richard Keith Wilder was convicted of forgery1 after entering a guilty plea pursuant to Alford v. North Carolina.2 The trial court entered a restitution order from which Wilder now appeals. For the reasons that follow, we vacate the order of restitution and remand with direction.

The proper amount or type of restitution shall be resolved by the ordering authority by the preponderance of the evidence. And the burden of demonstrating the amount of the loss sustained by a victim as a result of the offense shall be on the [S]tate. On review of a restitution order, the appellate court has the duty of reviewing the transcript to determine whether each party has met his or her specified burden and determining whether a restitution award was supported by the preponderance of the evidence.

So viewed, the record reveals that Wilder was indicted on two counts of first degree forgery for allegedly forging the names of two previous owners on a motor vehicle title and one count of alteration of an odometer.4 Wilder agreed to plead guilty to one of the two forgery charges in exchange for the State moving for entry of an order of nolle prosequi as to the remaining forgery charge and the alteration of an odometer charge.

At the guilty plea hearing, the State contended that Wilder sold a used vehicle to Andrea Berlin with a forged signature of a previous owner and an incorrect odometer for $7,900. The car immediately showed signs of disrepair, and Berlin invested $3,574 in repairs before attempting to resell the vehicle to another used car establishment, which offered her $1,700 for the vehicle.

At the guilty plea hearing, the State asked for a separate hearing on restitution and argued that the amount would be significant. During the plea colloquy, Wilder testified that he understood that there was restitution at issue in the case, and he would be required to pay the amount that the trial court would determine at the later hearing.

At the restitution hearing, the State presented evidence of the purchase amount of the vehicle as well as amounts Berlin spent in repairing the vehicle before giving it to a repairman after concluding that she could not invest more money in the automobile. At the hearing, the State contended that Wilder should be ordered to pay restitution in the amounts Berlin invested in the vehicle, both in its purchase and in its repair, while Wilder contended that those amounts did not flow from the forgery conviction.

The trial court entered its restitution order, finding that on March 5, 2007, Berlin purchased a vehicle from Wilder for $7,900 with mileage represented by Wilder to be 49,000, but in actuality the mileage was 98,000. Berlin was able to use the vehicle for three weeks during which time she invested $3,574 in repairs in the vehicle. Based on these findings, the trial court ordered Wilder pay Berlin $11,474 in restitution.

Wilder argues that the trial court erred by ordering him to pay restitution in the amount of the purchase price and repair expenses of the car because the State failed to meet its burden of proof. Wilder explains that his guilty plea was entered only as to forgery of the title document, which offense did not result in the losses making up the ordered amount of the restitution.

Pursuant to OCGA § 17-14-2 (2), damages recoverable through an order of restitution are “all damages which a victim could recover against an offender in a civil action based on the same act or acts for which the offender is sentenced. . . . The statute does not require that the damage be a direct result of the crime committed, but only that it be based on the same act or acts.”5 Moreover, “a defendant cannot be ordered to pay restitution for a count on which he was acquitted or not charged.”6 “Although the trial court was thorough in making written findings as to the calculation of the restitution award, it is nevertheless difficult to ascertain whether the court improperly included amounts based on” the nolle prossed charges in light of the trial court’s emphasis on the odometer readings.7 Thus, upon remand, the trial court should clarify its order to indicate whether any amounts were improperly included based on the nolle prossed charges and deduct those amounts, if any.8

Order of restitution vacated and case remanded with direction. Ellington, C. J., and Miller, J., concur.

Posted by Gary Mitchell

Used Car Dealer Facing Charges After Odometer Investigation

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Dave Gill is facing felony charges after complaints by an NBC10 viewer who bought a car at the lot he manages in Prospect Park.

 

A used car manager is facing felony charges after the NBC10 Investigators looked into complaints that he tampered with the odometer on one of his Jeeps.

A Prospect Park used car manager is facing felony charges after the NBC10 Investigators looked into complaints by an NBC10 viewer who bought a Jeep at his lot.

Dave Gill is accused of rolling back the odometer on the Jeep.

“The charges will be dropped then I’m coming after you,” Gill told NBC10’s Harry Hairston as he was going into court for his preliminary hearing.

Gill insists he’s done nothing wrong. He’s the manager of DeFilippo Brothers. Pennsylvania State Police have charged him with Prohibited Activities Relating to Odometers, one of two felony charges leveled against him. This all comes months after the NBC10 Investigators brought you the story of Rodney Gilmore.

Gilmore bought a 1998 jeep from DeFelippo Brothers in December of 2010. He says he started to have problems with the car immediately.

“It started to over heat, it wouldn’t start, it had issues with the cooling, brakes — there were a lot of issues,” Gilmore said.

Gilmore says that prompted him to get a Car Fax. According to state police documents, the report showed the Jeep had 84,000 miles on it when the used car company bought it, which is a lot more than the 67-thousand plus miles on the odometer when Gilmore bought the Jeep.

“Somebody, at some point along the line, tampered with the odometer, decreasing the mileage, the shown mileage, which would then be able to provide them an avenue to sell the vehicle at a higher price,” said state police officer Lou Vitali.

Gill’s attorney, Mike Malloy, says his client did nothing wrong. He blames the odometer. Malloy says if the car loses battery power, once it’s restored, the odometer reverts back to lower mileage.

“When it resets it’s going to go back to a different number,” Malloy told us.

Officer Lou Vitali says, “The paperwork really tells the tale.”

Gill is facing trial now. We’ll let you know what happens when he has his day in court.

Posted by Gary Mitchell