Former Fugitive Sentenced in Odometer Tampering Scheme

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PRESS RELEASE

Wednesday, December 6, 2023

For Immediate Release
GavelU.S. Attorney’s Office, Eastern District of Wisconsin

Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 5, 2023, a Mexican national was sentenced in the U.S. District Court for the Eastern District of Wisconsin to 12 months and one day in prison for his role in a scheme to roll back odometers on used motor vehicles.

Israel Sanchez-Pulido, 41, of Mexico City, Mexico, pleaded guilty on September 6, 2023, to one count of odometer tampering, one count of making a false odometer statement, and one count of conspiracy.

As part of his plea agreement, Sanchez-Pulido admitted that, between 2009 and 2014, he purchased 146 high-mileage vehicles at Wisconsin auto auctions, rolled back the odometers, altered the mileage statements on the vehicle title paperwork, and then sold the vehicles with fraudulently low odometer readings to unsuspecting victims, who were primarily from Illinois. Sanchez-Pulido purchased the cars at auto auctions located in Wisconsin and drove them to a used car dealership in Evanston, Illinois. He then rolled back the odometers, reflecting a much lower mileage, and altered the vehicle title to match the false mileage, often by simply erasing the first digit of the mileage on the title or by writing over the accurate mileage reading. Sanchez-Pulido then represented to buyers the false mileage, which often exceeded 100,000 miles lower than the true mileage and sold the vehicles for more money than the vehicles were worth. The estimated fraud-loss of the 146 vehicles involved in this schemed exceeded $250,000.

On March 5, 2014, Sanchez-Pulido was arrested and charged by criminal complaint. During the subsequent detention hearing, he was granted release after posting a property-secured bond, and he was ordered to return to court for arraignment on April 14, 2014. Sanchez-Pulido never appeared.

He absconded and remained a fugitive for nearly ten years until June 2023, when local law enforcement stopped Sanchez-Pulido for a traffic violation in Illinois and discovered the outstanding arrest warrant from the Eastern District of Wisconsin.

Judge Lynn Adelman sentenced Sanchez-Pulido to 12 months and one day of incarceration. At the request of the government, restitution will be addressed on March 1, 2024.

“Individuals who engage in these types of schemes seek to line their own pockets at the expense of consumers who can least afford it,” stated U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin. “In addition, after being charged, this defendant absconded and avoided the consequences of his actions for the better part of a decade. I commend our hard-working federal and state partners who helped pursue justice for the victims in this case.”

This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation, with assistance from the Wisconsin Department of Transportation.

Trial Attorney Edward Dunn of the Civil Division’s Consumer Protection Branch, along with Assistant U.S. Attorney Jonathan Koenig of the U.S. Attorney’s Office for the Eastern District of Wisconsin, prosecuted the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393.

More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/odometer-fraud and tips on detecting and avoiding odometer fraud are available at https://www.nhtsa.gov/sites/nhtsa.gov/files/811284.pdf.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Wisconsin, visit https://www.justice.gov/usao-edwi.

 

For Additional Information Contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

414-297-1700

NOTICE

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Notfea logoIt has come to the attention of the Wyoming Department of Transportation that there is blank Wyoming Title stock unaccounted for. The Department has notified the County from which they were taken.  Sometime after May 01, 2023 these Wyoming titles were stolen and some of the blank titles have been found to have been used for criminal purposes in the State of Colorado.  The missing blank Wyoming title stock consists of one case of 500 titles.  The control numbers on these titles are 8790001 through 8790500.  The control numbers are located at the lower right side of the title in silver print with a security box around the number.  On the lower left side of the title will be marked MV-301 (4/21) with a round silver security seal to the right of the text.  The security seal has the letters WY.  The control numbers are duplicated with the front green colored title that goes to the owner and the back copy that is white in color and is retained by Wyoming County clerks.  These missing titles may be used for fraudulent purposes.  If any of these control numbers are found please contact Investigator Shane Fox with the Wyoming Department of Transportation Compliance & Investigation section at 307-777-3840.

Fourth Ohio used-car dealership sued for odometer rollbacks

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by: Adam Conn

Posted: Sep 13, 2023 / 12:00 PM EDT

Updated: Sep 13, 2023 / 12:44 PM EDT

COLUMBUS (WCMH) – Ohio Attorney General Dave Yost is suing a fourth Columbus used-car company dealership he said was rolling back odometers and selling them under false pretenses.

The lawsuit is against Ohio Mega Group, formerly located on East Main Street, and its owner, Dominic Wiley. The lawsuit alleges that the dealership is in violation of the Ohio Consumer Sales Practices Act and the Odometer Rollback and Disclosure Act.

With Intel moving ahead, broad-scale planning around New Albany is, too
An investigation revealed that the dealership shares a lot with S Automotive, one of four used-car dealerships previously sued for similar violations, along with Kalango Links, after the two received nearly 60 complaints about alleged odometer-tampering schemes in February.

Earlier this summer, Uncle B Auto and its owner, Bethrand Ekeanyanwu, were sued for reportedly violating multiple consumer protection laws.

The suit against Ohio Mega Group, filed in Franklin County Common Pleas Court, accuses the dealership and Wiley of:

Failing to promptly file title applications within 30 and 40 days of vehicle assignment or delivery.
Concealing the rebuilt salvage status of vehicles from consumers.
Falsifying odometer disclosure statements.
Withholding accurate and complete odometer disclosures.
Engaging in odometer tampering or alterations.
Failing to obtain a surety bond in an amount not less than $25,000.00.
Selling a used motor vehicle to a consumer from a location that was not Ohio Mega Group’s established place of business.
The lawsuit seeks restitution for anyone who bought vehicles from Ohio Mega Group and recovery of funds from the Title Defect Recision Fund that was paid out to resolve consumer complaints.

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Former Georgia Used Motor Vehicle Dealer Pleads Guilty to Conspiracy to Commit Securities Fraud in Connection with Odometer Tampering Scheme

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Wednesday, July 12, 2023
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For Immediate Release
Office of Public Affairs
A Georgia man pleaded guilty today in the U.S. District Court for the Northern District of Georgia for his role in falsifying vehicle titles as part of a scheme to roll back odometers on used motor vehicles.

According to court documents between 2011 and 2013, Andrew O. Elphic, 52, of Monroe, engaged in a scheme to sell high-mileage and used vehicles with false and low-mileage readings entered on the vehicles’ odometers and titles. Elphic purchased high-mileage vehicles from auctions outside the State of Georgia, altered or arranged to alter the vehicles’ odometers to reflect false and lower mileage readings, and then altered the vehicles’ titles to reflect false lower mileages for the vehicles. He then submitted the altered titles to co-conspirators employed at a Georgia Motor Vehicle Division office and made cash payments to the employees in order to obtain new motor vehicle titles reflecting the false and lower mileages. Elphic then used the fraudulent titles with the lower odometer readings to sell the vehicles at an automobile auction in Atlanta. By deceiving purchasers into believing the vehicles had fewer miles, Elphic was able to sell the vehicles at inflated prices — thereby causing unsuspecting buyers to pay more for vehicles than they would have paid had the buyers known the true mileages.

Elphic’s scheme misrepresented the mileage to the Georgia Motor Vehicle Division on at least 305 vehicles, resulting in consumer losses of more than $550,000. Consumers who ultimately purchased the vehicles at dealerships did not know of the mileage discrepancies and, as a result, paid inflated sales prices.

“The Department of Justice will continue to work with law enforcement partners to prosecute unscrupulous individuals who deceive consumers purchasing used motor vehicles,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Misrepresenting used car mileages defrauds buyers and conceals significant information about the safety and reliability of these vehicles.”

“Our top priority is safety, and odometer fraud schemes not only scam consumers, but keep unsafe vehicles on our roads,” said Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA). “By actively prosecuting these crimes, we send a strong message that odometer scams, which affect the livelihood of Americans across this country, will not go unpunished. I thank our partners at the Department of Justice for working with us to deter odometer fraud.”

Elphic pleaded guilty to one count of conspiracy to commit securities fraud. He is scheduled to be sentenced on Oct. 24, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The NHTSA Office of Odometer Fraud Investigation investigated the case, with assistance from the Georgia Department of Revenue.

Senior Litigation Counsel Linda I. Marks and Trial Attorney Kathryn Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Thomas J. Krepp for the Northern District of Georgia prosecuted the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761.

More information on odometer fraud is available on the NHTSA website at www.nhtsa.gov/odometer-fraud, and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/sites/nhtsa.gov/files/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. For more information about the U.S. Attorney’s Office for the Northern District of Georgia, visit www.justice.gov/usao-ndga.

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Updated July 12, 2023

Federal Grand Jury Indicts Two Men for Wire Fraud and Odometer Tampering

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Thursday, June 15, 2023

For Immediate Release

U.S. Attorney’s Office, Western District of Kentucky

Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned an indictment on June 14, 2023, charging two Warren County men with wire fraud, conspiracy to commit odometer tampering, and four counts of odometer tampering.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Kevin Porter of the Department of Transportation made the announcement.

According to the indictment, beginning in June 2018, through January 2023, Randy Huff, 60, aided and abetted by his employee Donnie Wilson, 50, devised a scheme to defraud the buyers of used cars by fraudulently reducing the mileage shown on the odometers, thereby inducing both the immediate and subsequent buyers of the vehicles to pay more for the motor vehicles than they would have paid if they had known the vehicles’ true mileages.

As part of the scheme, mechanics working for Huff reduced the mileage shown on the vehicles’ odometers by swapping the odometers with lower-mileage replacement odometers. After altering the vehicles’ odometers and the titles, Huff, Wilson, and other employees sold the vehicles to customers at Huff’s Auto Sales in Beaver Dam, Kentucky, and South Side Auto Sales in Bowling Green, Kentucky. This led to larger profits for Huff.

Huff and Wilson are scheduled to make their initial appearances before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky on June 21, 2023. If convicted, each faces a maximum sentence of 35 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.

There is no parole in the federal system.

This case is being investigated by the United States Department of Transportation and the Kentucky Department of Transportation.

Assistant U.S. Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Updated June 15, 2023

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Owensboro car dealership owner, salesman, accused of rolling back odometers on vehicles

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Owensboro car dealership owner, salesman, accused of rolling back odometers on vehicles

OWENSBORO, Ky. (WEVV) — Two men are facing charges in Owensboro after police say they were illegally modifying the mileage on vehicles at their car dealership.

Police say “Discount Motors” owner Eddie Howard and salesman Donald Adams are facing criminal charges for rolling back the odometers in vehicles before reselling them.

Officers say they started the investigation after a complaint was made, gathering evidence and witness statements to support the claims.

Through their investigation, authorities say they determined that Howard and Adams acted together to commit the fraud by using electronic devices.

OPD says a search warrant was executed at the dealership on Thursday, which resulted in the seizure of evidence related to the crimes, including $350,000 in cash, 3 firearms, in excess of 100 Oxycodone pills, 2 vehicles, and electronic devices utilized to perpetrate fraud.

Howards and Adams were both arrested and charged with multiple crimes including drug trafficking, plus 20 counts each of tampering with motor vehicle odometers.

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Wichita Man Pleads Guilty to Conspiracy to Commit Odometer Tampering

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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.

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Three Chicago Men Charged with Odometer and Title Fraud

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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.

 

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