A GROUP of scammers could be facing 25 years of prison after using fake documents to purchase vehicles.
The auto criminals would buy the cars for cheap and then resell them for nearly $43,000 each.
GettyOver 30 individuals were charged as part of a vehicle fraud scheme[/caption] GettyDefendants would purchase vehicles with fake documents and resell them for more money[/caption]It was revealed that vehicles obtained from Long Island car dealerships using fake loan documents were then resold, as reported by Newsday.
Suffolk County Assistant District Attorney Blythe Miller detailed how the scheme unfolded.
“The defendants unlawfully obtained vehicles by forging and falsifying loan applications and supporting documents, fraudulently removed the liens from the vehicle titles through various criminal methods” Miller told the court.
“… and then resold the unlawfully obtained vehicles in Suffolk County and elsewhere.”
The two brothers, Mark McCall and Keith Agard, who were mainly responsible for the auto scam, purchased more than 130 vehicles and resold them to online dealerships like CarMax or on Facebook Marketplace.
The investigation revealed that the scammers would “clean” the titles on the vehicles, meaning there would be no outstanding debts or liens on the vehicles.
This ensures the new owner won’t inherit any financial obligations related to the car’s past.
After wiping the titles, they were able to resell the cars for an average of nearly $43,000, Miller said.
“Few, if any, payments were ever made to the financing company to pay down the loan taken out on the purchased vehicles,” Miller said.
On Wednesday, prosecutors in Suffolk County Criminal Court charged 33 individuals and two Suffolk businesses.
In total, the auto scam generated over $5.5 million.
Each of the defendants now faces up to 25 years in prison under the top charge in a grand jury indictment, which accuses them of enterprise corruption.
Enterprise corruption, often associated with organized crime, refers to the use of legitimate businesses or other entities to facilitate or conceal illegal activities.
In this case, some of the defendants would purchase vehicles for a cheaper price by presenting fake, inflated credit scores, forged pay stubs, and utility bills.
How to spot add-on fees at the dealership
The Federal Trade Commission is cracking down on dealerships that charge buyers unfairly.
However, as many transactions aren’t spotted due to electronically signed documents, many added-on fees aren’t spotted. Here’s how the agency says you can spot them.
Demand a physical copy of the sales contract or invoice, and read it carefully. Customers aren’t required to pay for add-ons they don’t want, like nitrogen-filled tires, paint protectant, wheel and tire insurance, etc. Be sure you understand the total cost, not just the monthly. Make sure the total cost is in writing so you can get an idea of how other fees play into the monthly fee. If it’s different from what you originally agreed on, the dealer may be adding fees. Explore your options for financing. First, check with your bank, as they can give better rates on auto loans depending on your credit. Bring a hard copy of your preapproval notice to entice the dealer to meet or beat those terms. If you’ve been charged illegally, the FTC encourages you to report it.Source: FTC
The criminals worked fast to avoid getting caught by law enforcement.
“We deny the allegations and are looking forward to receiving and reviewing all the evidence and discovery the DA stated they have,” said McCall’s attorney, Robert Macedonio.
A dozen individuals claimed they were not guilty in the auto scheme on Wednesday.
Prosecutors identified others who aided the auto scam, including Jason Disisto, of New Rochelle, and Suffolk County resident David Wilson.
Wilson’s attorney didn’t agree with prosecutors’ use of estimates to determine the total amount of money garnered.
Prosecutors believed that the criminals were able to make roughly $386,500 for nine of the vehicles, but the total amount could be well over $5 million.
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