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Florida Auto Fraud Ring Nets $1.67 Million
FORT LAUDERDALE, FL – Eight individuals are facing federal charges after a years-long investigation uncovered a sophisticated automobile fraud scheme that bilked lenders and buyers out of $1.67 million. The U.S. Attorney’s Office for the Southern District of Florida announced the indictment today, detailing a network of deceit spanning from 2008 to 2015.
Charged in the fourteen-count indictment are Mark David Johnson, 41, of Fort Lauderdale, Florida; David William Wheat, 66, of Fort Pierce, Florida; Michael Kennedy Brown, 53, of Delray Beach, Florida; James Carrington, 37, of Aurora, Missouri; Jana Kabelova, 41, of Fort Lauderdale, Florida; Michael Munday, a/k/a “Mickey,” 71, of North Miami, Florida; Juan Ottavianelli, 71, of North Miami, Florida; and Edwin Fernandes, 50, of North Miami, Florida. All are accused of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and mail fraud, in violation of Title 18, United States Code, Section 1341.
The scheme, according to prosecutors, revolved around acquiring mortgaged vehicles through illegal means, including the use of ‘straw buyers’ – individuals with clean credit used to obtain loans for the conspirators. Once in possession, the group allegedly filed false and fraudulent lien notices via U.S. mail, attempting to mislead lenders. Vehicles were then hidden across Miami-Dade and Broward Counties to avoid repossession, while the rightful owners were illegally removed from the vehicle titles. These stolen assets were then sold at below-market rates to other co-conspirators, who would flip them for a profit.
The indictment further alleges a clear division of labor. Johnson and Kabelova reportedly recruited the straw buyers and targeted distressed auto loans. Carrington is accused of outright vehicle theft, transporting stolen cars from Missouri to Florida. Munday, Fernandes, and others provided transportation and storage for the fraudulently obtained vehicles. Brown, Johnson, Munday, and Ottavianelli allegedly handled storage, while Wheat fabricated and mailed the fraudulent lien documents and filed applications for new titles with the Florida Department of Motor Vehicles. Johnson then allegedly sold the vehicles to Brown and others.
“This wasn’t a spur-of-the-moment operation; this was a calculated, multi-year scheme designed to defraud lenders and enrich these defendants,” stated a source close to the investigation. If convicted, each defendant faces up to twenty years in prison, three years of supervised release, a $250,000 fine, and will be required to pay restitution. Initial hearings are scheduled for May 5, 2017, before U.S. Magistrate Judge Alicia Otazo-Reyes.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department, jointly announced the indictment. The case is being prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Nalina Sombuntham. It is crucial to remember that an indictment represents an accusation, and the defendants are presumed innocent until proven guilty in a court of law. Court documents can be found at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.
RELATED: Convicted Ponzi Schemer Arrested in Florida After Failing to Show Up for Sentencing
RELATED: Four Men Sentenced to Prison for Roles in Nationwide “Felony Lane Gang” Conspiracy
Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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