Shmuel Gali, Odometer Tampering, New York 2020

Grimy Times exclusively reports on the sentencing of Shmuel Gali, a used motor vehicle dealer from Brooklyn, to 60 months in federal prison for his role in a long-running odometer tampering and money laundering scheme. Gali was ordered to pay $3,936,000 in restitution to his victims.

According to court documents, between 2006 and June 2011, Gali, in conspiracy with his brother Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle-leasing company; altered the odometers of the vehicles to reflect false, lower mileages; and then sold the vehicles at wholesale automobile auctions.

Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices. On average, the odometers on the vehicles were rolled back by close to 70,000 miles.

“An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Brian M. Boynton. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Justice Department will continue to work with law enforcement partners to prosecute odometer fraud.”

“This sentence sends a warning that this office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” said Acting U.S. Attorney Jacquelyn M. Kasulis. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.”

The investigation was conducted by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation and IRS-CI. Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Catherine M. Mirabile prosecuted the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761.

The case serves as a warning to dealers and individuals involved in odometer tampering schemes that they will be held accountable for their actions. It also highlights the importance of transparency and integrity in the automobile sales industry.

Grimy Times will continue to monitor this case and provide updates as more information becomes available.

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