9 Indicted in Title Fraud Scheme in Arizona

9 people were indicted by a grand jury in Arizona. According to AZcentral.com, ” An Arizona grand jury has indicted nine people accused of running an illegal operation that produced tens of thousands of titles for vehicles being sold in 42 states. 

State prosecutors say Scott Bandy, James Johnson, Mary Fialko, James Edward Fialko, Lon Chaneyfield, Ivan Valenzuela, Oscar Valenzuela, Tamela Bandy and Ashley Cwick have been charged with conspiracy, fraudulent schemes and artifices, money laundering, control of an illegal enterprise and fraudulent schemes and practices.”

They also said ”

Prosecutors say the nine people indicted are accused of conspiring since 2015 to fraudulently obtain Arizona car dealership licenses and of consigning those dealership licenses to paying subscribers via an online membership service.

Over 1,500 subscribers purchased thousands of vehicles in 42 states and the indicted defendants are accused of fraudulently titling more than 30,000 vehicles during the course of this scheme. 

Prosecutors say the amount of illegal proceeds associated with the scheme is alleged to be at least $6.8 million.”

Read the whole article here. AZcentral.com

Texas Car Dealer Convicted in Title Washing Scheme

A press release from the FBI says, “United States Attorney John E. Murphy announced that in San Antonio this afternoon, a federal jury convicted 49-year-old car dealer Jerry Edward Weaver, of Rowlett, Texas, for his role in a vehicle title washing scheme.”

According to the FBI, ““Title washing” is the fraudulent process through which a vehicle’s title is corruptly altered to conceal information that should normally be contained on the title, such as a previous salvaged title or a financial lienholder. A vehicle that has a “certificate of destruction,” “non-repairable” history, or “parts only” history can only be utilized for parts or scrap metal and can never receive a clean title.”

Also stated in the press release, “Evidence presented during trial revealed that between June 2009 and October 2010, Weaver; co-defendant Babauk Omeed Harizavi, of San Antonio; and others were involved in a scheme to defraud, by requesting and filing fraudulent paperwork with the Texas Department of Motor Vehicles, to seek clean Texas vehicle titles using the mechanic’s lien process. Upon receipt of the clean Texas vehicle titles, the defendants sold those vehicles to unsuspecting consumers or third parties without disclosing the past “certificate of destruction,” “salvage title,” or “parts only” title histories of those vehicles. Weaver, Harizavi, and their co-defendants are collectively responsible for 613 fraudulently obtained Texas vehicle titles issued by the Texas Department of Motor Vehicles based on fraudulently filed mechanic’s liens.”

Read the full press release here, https://archives.fbi.gov/archives/sanantonio/press-releases/2011/jury-convicts-rowlett-car-dealer-in-title-washing-scheme

Several arrested in multi-state $6.8 million auto dealer scam in Arizona

A report from Channel 12 NBC news in Arizona says,

“31 auto dealerships, $6.8 million in illegal proceeds and 42 states. Those are the numbers broken down in the court documents about an expansive auto licensing scheme based in the East Valley.

Authorities opened the investigation after a complaint was filed from a California auto dealer association in March 2019. 

The alleged ringleaders of the scam are identified as Scott Bandy, 28, of Chandler and James Johnson, 40, of Gilbert, according to court documents.   

Investigators claim they created a program where unlicensed auto dealers were assigned or rented licenses. The program subscribers were offered unlimited access to dealer-only car auctions, Arizona dealer plates without proper documentation and the subscribers bypassed the approval process to obtain a license to sell cars, court documents say.

They also said, “Investigators reported identifying 31 auto dealerships involved in the program. And cars were purchased across 42 states.

“The operation also altered vehicle titles from these subscribers for about $100 per title to make it appear as though the individuals bought the vehicles from one of the suspects’ 31 operations with dealer licenses. More than 31,000 titles were processed this way over the past couple of years, and many of the vehicles involved were never in Arizona,” an ADOT statement said.”