Used car dealers and salesman are some of the most hated individuals in the U.S. This is mostly due to a pervasive idea that they are fraudsters, and this is why every state has laws against auto dealer fraud. Though, what some may not realize is that federal law also prohibits auto dealer fraud, like odometer tampering, which is what one used car dealer is now finding out first hand.
The alleged scheme
According to the Justice Department’s Civil Division and the Internal Revenue Service-Criminal Investigation, the auto dealer pled guilty to tampering with odometers to reduce the miles shown on the car’s odometer to fool customers into unknowingly paying inflated prices for vehicles. Apparently, the dealer did this on nearly 700 vehicles. They would purchase high milage vehicles, reduce the number of miles on the odometer and then, sell them at wholesale auto actions. On average, the dealer reduced the miles on each car by 70,000.
According to the Justice Department’s Civil Division and the Internal Revenue Service-Criminal Investigation, the auto dealer fraud at issue here is odometer tampering and money laundering. As a result, the used car dealer now faces a 60-month prison sentence, along with nearly $4 million in restitution.
Auto dealer fraud in Connecticut
In our state, like every other state, auto dealer fraud is a real issue. And, Connecticut law, along with federal law, provides residents with avenues to hold these unscrupulous dealers accountable. Though, the first step to fighting auto dealer fraud is to contact an attorney.