Baltimore, Maryland – Chief Judge George L. Russell III handed down a 36-month federal prison sentence to Kamal Khalid, 44, of Pasadena, Maryland, for his pivotal role in an odometer rollback scheme that bilked unsuspecting used car buyers out of millions. Khalid’s younger brother and co-conspirator, Fnu Shahrukh, 31, was sentenced to 18 months for his part in the scam.
The brothers were convicted of conspiracy and securities fraud after pleading guilty to altering vehicle odometers and titles to defraud consumers. Judge Russell ordered them to pay $1.2 million in restitution to their victims. U.S. Attorney Kelly O. Hayes emphasized the seriousness of odometer fraud, which not only robs individuals of hard-earned money but also poses safety risks on the road.
In a joint statement with National Highway Traffic Safety Administration (NHTSA) Administrator Jonathan Morrison, Hayes highlighted how the scheme defrauded buyers into overpaying for vehicles nearing their expected lifespans, without knowledge of critical service dates. Morrison called for increased awareness and education to combat such frauds.
The co-conspirators, between 2016 and 2019, purchased high-mileage vehicles at auto auctions, altered odometer readings, and sold the cars with falsified titles. The scheme artificially reduced vehicle mileages by an average of 124,000 miles, resulting in overinflated prices for unsuspecting buyers.
U.S. Attorney Hayes commended the NHTSA’s investigation efforts and thanked Assistant U.S. Attorney Matthew Phelps, Senior Litigation Counsel David Sullivan, and Trial Attorney Manu J. Sebastian for their work on the case. For more information on odometer fraud prevention, consumers are encouraged to contact NHTSA’s Vehicle Safety Hotline at 888-327-4236 or visit NHTSA’s website.
RELATED: Maryland Brothers Nabbed in $1.2M Odometer Fraud
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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