News car odometer rolled back 45,000 miles by Denver-area business

LITTLETON, Colo. -- The U.S. Justice Department calls it “clocking”: intentionally rolling back an odometer to make a vehicle appear less used.

Odometer rollback is “the single most common fraudulent issue in Colorado and nationwide." That's a bold statement made by one of this state's top auto enforcement regulators.

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Huntsville Man Convicted on Multiple Counts of Tampering with Vehicle Odometers and Bank Fraud

USDOJ
Office of Public Affairs FOR IMMEDIATE RELEASE

Huntsville – A federal jury on Thursday, April 4, 2019, convicted a Huntsville man on multiple counts of tampering with vehicle odometers and three counts of bank fraud, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams. 

Following a four day trial before U.S. District Judge Abdul K. Kallon, and only a 20-minute deliberation by the jury, Randy Eugene Greene, 62, was convicted of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud.  A sentencing date has been set before Judge Abdul K. Kallon on July 17, 2019.

Randy Eugene Greene, d/b/a RJ’s Auto Sales on South Memorial Parkway in Huntsville, was convicted by the jury of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud.  In the 11 counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016.  The largest discrepancy in the changed odometer reading was approximately 218,678 miles.  The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles.  In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union.  The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed.  Greene was served with a notice of forfeiture related to the bank fraud counts, which includes but is not limited to a money judgement in the amount of $28,000.

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Odometer fraud and how to avoid it

Even with the dawn on the digital odometer, used car buyers should be aware of odometer fraud. That's the warning from Carfax.

"In fact these digital odometers can be easier to rollback because A) we're not looking for it and B), there's widespread availability of tools that simply plug into the car's computer and essentially hacking it," said Chris Basso of Carfax. 

Basso suggests checking with a site like Carfax or having an auto mechanic check out the car you're considering before you purchase. 

For the full demonstration of how a digital odometer can be rolled back, see the video player above.

Original Article: https://www.kbtx.com/content/news/Odometer-fraud-and-how-to-avoid-it-504991461.html

Kennett man pleads guilty to fraud charge

CAPE GIRARDEAU, Mo. — The United States Attorney’s Office announced that Nicholas H. Brock, 36, of Kennett, Missouri, pled guilty to one felony count of mail fraud. He appeared before United States District Judge John A. Ross.

Brock admitted that beginning on or about Feb. 10, 2017, and continuing through about June 13, 2017, in Dunklin County, Missouri, he defrauded a lien holder for an over-the-road tractor trailer truck financed by North Mill Equipment Finance, LLC, for a 2008 Peterbilt over-the-road truck in which the lender retained a security interest. Brock prepared and sent, via the mail, a Form 4577, Missouri Department of Revenue, Vehicle Owner and Lien holder notification to the lender, falsely claiming that a 2008 Peterbilt over-the-road tractor trailer truck had been towed by his towing company, Elite Tow & Recovery, from Pendleton, Oregon, on February 10, 2017, for a “breakdown.” The towing charge was $16,096 plus storage costs of $100 a day. Brock mailed the fraudulent Form 4577 for the purpose of obtaining a clean title for that vehicle from the Missouri Department of Revenue as an abandoned vehicle, based on the lienholder’s failure to pay the tow bill after receiving notice of the bill.

Brock also prepared a Form 4576, Missouri Department of Revenue Abandoned Property Affidavit, in which Brock falsely represented to the Missouri Department of Revenue that the 2008 Peterbilt truck had been abandoned. Brock mailed that form to the Missouri Department of Revenue to obtain a Certificate of Title for the over-the-road truck, based on a bogus and false tow bill.

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Digital license plates could be in Florida’s future

Digital license plates may be the future and it could help save taxpayers millions.

According to NBC News, a company called Reviver Auto has developed electronic license plates, dubbed Rplates

Rplates are now on sale in California, and will be available in Arizona, Texas and Florida in the near future.

Reviver Auto CEO Neville Boston said his company is working to legalize them in another nine states by the end of the year.

The plates retail for $699, plus a monthly service plan that costs up to $7.75 for the desktop browser-based software to manage the system and optional GPS tracking.

With the plates, drivers would never have to renew their tag in person at the DMV office or through the mail.  They could simply do it online with no need to replace stickers each year.

The same goes for customization. 

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Norfolk man pleads guilty to rolling back odometers on at least 50 used cars, reselling for profit

A Norfolk man conspired to roll back the odometers of more than 50 vehicles before selling them to used-car dealerships and others, according to court documents.

Lawson W. Basnight, 47, pleaded guilty Thursday to the fraud – which resulted in $250,000 to $550,000 in losses.

“He’s accepted responsibility and knows what he did was wrong,” Moody “Sonny” Stallings Jr., Basnight’s attorney, said after the plea hearing. He said his client expects to serve some time in jail and was ready to start his sentence Thursday, “but the judge talked him out of it.”

A sentencing hearing is set for May 16 in U.S. District Court in Norfolk. Basnight faces a maximum of five years in prison.

Prosecutors Jacqueline Blaesi-Freed and Elizabeth Yusi declined to comment.

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Two arrested in misconduct investigation into Denton County Tax Office

Two people were arrested on bribery charges last month in connection with a misconduct investigation into the Denton County Tax Office.

Former tax office employee Tramanski Johnson, who worked at the Lewisville branch, was booked into Denton County Jail on Sept. 12 after turning himself in on the bribery charge, police said. Juana Caballero, a notary public who allegedly notarized forged documents, was booked on the bribery charge Sept. 11.

The Denton County Sheriff's Office investigated the case. The affidavit in support of the suspects' arrest outlines a complex scheme involving bribes to process fraudulent vehicle title transfers.

The tax office collects property taxes, renews vehicle registrations and contracts with several car dealerships to issue titles on new vehicles. The office has six locations within the county, including Lewisville, Cross Roads, Frisco and Flower Mound. The main Denton office is at 1505 E. McKinney St. Continue reading

Emissions test, odometer fraud found at vehicle inspection stations in Harris County, deputies say

HARRIS COUNTY, Texas — At least two people have been arrested after an investigation revealed the suspects were conducting fraudulent vehicle inspections at two separate stations in Houston, the Harris County Pct. 4 Constable’s Office said.

Investigators received information that BI-LO Used Cars located at 2823 South Shaver Street was allegedly rolling back odometers on used cars and conducting fraudulent vehicle inspections using a procedure called clean scanning.

Clean scanning is when an inspector tricks the monitoring tool by entering in the vehicle identification number for an automobile that would fail an emissions test, but then connects the monitor to a vehicle that would pass. Meanwhile, odometer rollback is the illegal practice of changing or altering the mileage readings on vehicle to make it appear as though it has been driven less than it has.

Investigators report that over a 90 day period 54 percent of the vehicle inspections conducted were unlawful.

Another investigation concentrated on Hardy’s State Inspection located at 12965 W. Hardy Road was also using a “clean scanning” procedure. The shop is a state-licensed vehicle inspection station, deputies said.

The constable’s office reported over a 90 day period 76 percent of the vehicle inspections conducted were unlawful.

Deputies said arrest warrants were executed at both shops, resulting in the arrest of Adel Yacoub and Raymond Mentzel.

Yacoub and Mentzel are each facing two counts of tampering with a governmental record.

Original Article: http://cw39.com/2017/10/20/emissions-test-odometer-fraud-found-at-vehicle-inspection-stations-in-harris-county-deputies-say/

Texas Department of Motor Vehicles (TxDMV) – Press Release

Texas Department of Motor Vehicles (TxDMV)

In April 2014, the Texas Department of Motor Vehicles (TxDMV) received several complaints from a county tax office regarding the use of fraudulent identification documents to transfer titles. The TxDMV opened an investigation and determined Damaris Sarai Martinez submitted over 40 title transactions listing fraudulent Texas driver licenses, fraudulent addresses, and fraudulent trade allowances. The TxDMV partnered with the Texas Department of Public Safety Criminal Investigation Division to further investigate Martinez. A search warrant was obtained for a location where she operated and fraudulent documents were obtained. Martinez was charged for violation of Texas Transportation Code, Section 501.155, False Name, False Information, and Forgery, which is a third degree felony. On February 24, 2017, she entered into a plea agreement for ten years confinement in the Texas Department of Criminal Justice and payment of a $2,000 fine. The sentence was suspended, and she was placed on probation for five years. Martinez was subsequently taken into custody by Immigration and Customs Enforcement for deportation.