Hussein Ghzo, Odometer Tampering Conspiracy, Illinois 2024

A Palos Heights man has been convicted of conspiring to commit securities fraud in a scheme that involved altering the odometer readings on hundreds of used cars, a federal jury determined last Friday.

Hussein Ghzo, 42, of Palos Heights, was found guilty of conspiracy to commit securities fraud, after a week-long trial that exposed the brazen scheme in which he, his brother Laith Ghzo, 38, and Musab Sawai, 36, worked together to roll back the odometer readings on the vehicles, falsify title documents, and sell them to unsuspecting consumers.

According to court documents and evidence presented at trial, the defendants purchased high-mileage cars at auto auctions, brought the cars to Chicago, had the odometer readings on those cars altered, falsified title documents to reflect the false low mileage, submitted those false titles to the Illinois Secretary of State and then sold the cars at other auctions with the false low mileage titles and false odometer readings.

Despite being warned on three separate occasions that the cars he was selling had rolled back mileage, Ghzo continued to participate in the scheme, including by attempting to pose as other people and hide his true identity.

“The Justice Department is committed to prosecuting those who prey on unsuspecting consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The scheme at issue here deprived consumers of important information relating to vehicle safety and future repair costs.”

Ghzo is scheduled to be sentenced on Jan. 22, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Ghzo and Sawai have previously pleaded guilty in connection with this matter and are awaiting sentencing. Ghzo will be sentenced on Oct. 31. Sawai’s sentencing date has not yet been set.

The U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Tampering Investigation, and the U.S. Postal Inspection Service investigated the case. The matter was originally referred to the federal government by the Maryland Motor Vehicle Administration.