California Man Guilty of Mail Fraud

California Man Guilty of Mail Fraud

LOS ANGELES, LA – A 56-year-old man from Rancho Palos Verdes, California, has pleaded guilty to mail fraud for his role in creating and selling non-authentic Mercedes-Benz diagnostic equipment.

Martin Vellozzi, 56, was charged with one-count mail fraud for his involvement in the production and sale of unauthorized and non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS).

Between 2005 and July 2012, Vellozzi owned LMV Industries, a California-based company that offered technical information and support for Mercedes-Benz automobiles. The company also produced and sold the non-authentic SDS, which contained Mercedes-Benz logos and trademarks.

Vellozzi misrepresented the equipment as authentic and authorized by Daimler AG, resulting in significant financial losses for his victims. The ‘real’ SDS sold for between $8,300 and $22,000 each, while Vellozzi sold the non-authentic SDS for approximately $6,000.

According to court documents, Vellozzi worked with companies in Durham, North Carolina, and Harahan, Louisiana, to manufacture, sell, and repair the fake SDS, which were then sent through commercial interstate carriers. In total, Vellozzi sold approximately 95 non-authentic SDS units at approximately $6,000 each.

Vellozzi faces a maximum term of imprisonment of 20 years, followed by up to 3 years of supervised release, and a $250,000 fine. Sentencing is scheduled for November 20, 2013, at 2:00 pm.

The case is being investigated by agents from the Federal Bureau of Investigation, and the prosecution is being handled by Assistant United States Attorney Jordan Ginsberg.

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