Odometer Rollbacks Up
Report shows fraud on increase, despite digital devices.
Report shows fraud on increase, despite digital devices.
A Georgia businessman this week pleaded guilty to operating an odometer fraud scheme that revolved around buying later-model cars at auction, tampering with the odometer reading, and then selling the cars at inflated prices, the U.S. Department of Justice announced.
The dealer and state employee were charged with devising a scheme to buy high-mileage vehicles in nearby states, roll back their odometers, and then resell them in Georgia. They now face up to 10 years in prison if convicted.
Billed as a down payment for building a 21st century transportation system, the recently passed Fixing America’s Surface Transportation Act, or Fast Act, contains a provision that clears a key hurdle in the industry’s drive toward a fully digital transaction.
A father and son were arrested and their two dealerships were closed after police began pursuing racketeering charges against the pair.
A Michigan dealer was arrested Dec. 3 after authorities checked several vehicles on his lot and discovered mileage discrepancies. Police said it appeared the dealer had installed used, low-mileage odometers in high-mileage cars.
Scott’s Auto Sales has reopened after police seized five cars from the dealership as part of an odometer fraud investigation.
A car dealer in Indiana is charged with odometer fraud, according to Indiana new network ABC57.
A Missouri dealership is in legal hot water after the state attorney general charges it with altering odometers on vehicles for sale.
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