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Dealer Gets Suspended Sentence

Thursday, 25 January 2018 19:52
A Tennessee used-car dealer pled guilty to one count of sales tax fraud and one count of theft over $60,000. Joseph Williams was the former managing partner of The People’s Choice Auto Sales LLC in Memphis. Williams was sentenced to 10 years in the state prison. The judge suspended William’s prison sentence, placed him on 12 years of probation, and ordered him to pay $1,489,730.85 in restitution to the Department of Revenue.

High End Dealer Goes to Jail for Tax Evasion

Wednesday, 24 January 2018 20:47
A high-end used-car dealer who failed to pay close to $400,000 in sales tax by underreporting his sales was sentenced to three years in prison. Evidence submitted in a jury trial showed that Mohammad Hassan Mostafavi – through his company Euro Auto Imports Inc. in San Jose, Calif. - reported that he made about $1.8 million in vehicle sales over three years. In fact, he made about $6.8 million. Mostafavi was convicted of three counts of felony sales tax evasion. The defendant operated Euro on West San Carlos Street in San Jose from June 2006 until approximately May 2012. The California Department of Tax and Fee Administration first audited the defendant, who was chronically late filing tax returns and making sales tax payments, and then conducted a criminal investigation. Mostafavi’s license to sell cars was revoked by the state. His business has since closed.

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IADA Warns of Key Thefts

Tuesday, 23 January 2018 21:07
The Michigan Independent Automobile Dealers Association is warning its members about a rash of key thefts. Two Michigan dealerships were broken into on Jan. 11. The thieves stole keys and drove vehicles off the lots.  The two vehicles were:  2B3CK3CV1AH254993 - 2010 Dodge Charger SXT AWD Black 2C3CDXCT5DH595823 - 2013 Dodge Charger RT Black  

State Arrests Dealer for Unpaid Taxes

Wednesday, 10 January 2018 00:50
The New York State Department of Taxation and Finance announced that the owner of two used car dealerships in Syracuse has been arrested for allegedly failing to pay New York State $206,573 in sales tax.
Samy S. Guind operates Auto Hunter Inc. and previously operated the now-shuttered Auto Solution of CNY, Inc. He was arrested by investigators with the Tax Department’s Criminal Investigations Division.
Guindy faces separate felony counts for each company. In both cases, the defendant pleaded not guilty and was released on his own recognizance. 
For the Auto Solution store, Guindy was charged with one count of second degree grand larceny, 11 counts of third degree criminal tax fraud, and 11 counts of first degree offering a false instrument for filing, all felonies. He allegedly underreported sales made at Auto Solution, from December 2010 through August 2015, failing to remit to the state at least $68,856 in sales tax.
For the Auto Hunter store, Guindy was charged with one count of second degree grand larceny, 19 counts of third degree criminal tax fraud, and 19 counts of first degree offering a false instrument for filing, all felonies. He allegedly underreported sales made at Auto Hunter from December 2010 through May 2017, failing to remit at least $137,717 in sales tax.
If convicted, Guindy could face a sentence of up to 15 years in prison.
Men Face Charges of Defrauding Auto Creditors

Men Face Charges of Defrauding Auto Creditors

Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to...

Auto Stocks Outperform Market

Auto Stocks Outperform Market

The Kerrigan Auto Retail Index (The KAR Index), a composite of the seven publicl...

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    Men Face Charges of Defrauding Auto Creditors Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to…
    Written on Thursday, 15 September 2016 16:49
  • FTC Issues Revised Used Car Rule
    FTC Issues Revised Used Car Rule The Federal Trade Commission has announced final amendments to its Used Car Rule.The FTC has sought public comments on a series of proposed changes to the Rule (formally known as…
    Written on Monday, 14 November 2016 01:09
  • Dealer Fails to Pay Sales Tax
    Dealer Fails to Pay Sales Tax Biel Semexant Jr., owner of Auction Access USA, doing business as Access 2 Auctions, has been arrested on charges that he stole more than $50,000 in sales tax he collected…
    Written on Monday, 19 September 2016 18:32
  • CFPB Takes Action Against Title Pawn Firm
    CFPB Takes Action Against Title Pawn Firm The Consumer Financial Protection Bureau took action against TitleMax parent company TMX Finance LLC. The bureau ordered TMX Finance to stop its unlawful practices and pay a $9 million penalty.…
    Written on Tuesday, 27 September 2016 14:19
  • State Shuts Down Repair Shops
    State Shuts Down Repair Shops The Michigan Secretary of State has issued cease and desist orders to five unregistered auto repair shops in Shiawassee, Kent, Bay and Calhoun counties.Justice Recovery & Repair in Durand is…
    Written on Wednesday, 07 September 2016 14:39
  • State Claims Dealer Forged Documents
    State Claims Dealer Forged Documents A southeast Michigan auto dealer faces seven felony charges for allegedly forging federal import documents after Secretary of State staff became suspicious of the documents he presented.Auto dealer David S.…
    Written on Thursday, 29 September 2016 17:32
  • AG Sues Dealer for Failing to Deliver Titles
    AG Sues Dealer for Failing to Deliver Titles The Ohio attorney general announced a lawsuit against a Cleveland used-car dealership accused of failing to deliver motor vehicle titles.Ohio Auto Credit LLC and its owners are accused of violating…
    Written on Wednesday, 05 October 2016 21:27
  • State Arrests Dealer for Not Paying Taxes
    State Arrests Dealer for Not Paying Taxes Roberto A. Martinez, operator of RDM Automotive Group, Inc., has been arrested on charges for the theft of more than $922,000 in sales tax he collected from customers, but failed…
    Written on Thursday, 03 November 2016 20:51
  • Former Salesman Gets Prison for Pocketing Payments
    Former Salesman Gets Prison for Pocketing Payments A former salesman was sentenced to at least 16 months in prison for stealing car payments from customers and dealerships in Nassau County. Michael McGriff pleaded guilty to charges, from…
    Written on Tuesday, 13 September 2016 14:19
  • FTC Updates Penalties
    FTC Updates Penalties The Federal Trade Commission has adjusted the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation…
    Written on Sunday, 15 January 2017 04:09