Post by
docsmile71 »
https://forums.nicoclub.com/docsmile71-u7208.html
Sun Oct 03, 2004 2:53 am
I wouldn't take cars on ebay as the standard. There was a recent article in the NY Newsday about a car theft ring that was busted. Their mode of operation was to repair flood, salvage and theft recovery titles and launder the titles in states like VA, FL, and TX. The article says that most of these cars end up on ebay sold by fake dealerships.
Here's the text from that article.
East Coast's largest auto theft ring busted on LIEleven charged in major East Coast ring, which feds say paid for Gold Coast homes and retail centers
By Robert E. KesslerStaff Writer
September 10, 2004
A brazen auto theft ring stole at least 5,000 cars, mainly on Long Island, over the past five years and raked in a $20 million profit, federal authorities allege.
Authorities said the ring, which they called the largest on the East Coast, employed a number of unusual schemes to dispose of the cars, including stripping a car of its parts, abandoning the shell and then repurchasing the shell from insurance company auctions.
The cars, now with a clean title, would then be rebuilt with the stripped parts and resold.
The profits from the enterprise were so great that the two alleged ringleaders, Michael Pescatore, 41, of 34 Chestnut Hill Dr., Upper Brookville, and Sanford Edmonston, 37, of 71 Oakdale Rd., Roslyn, used them to pay for luxury Gold Coast homes and for the purchase of a Queens shopping center and strip malls, apartment buildings, and medical offices on Long Island, said United States Attorney Roslynn Mauskopf.
Pescatore and Edmonston, along with the nine others, were charged yesterday with conspiracy to operate an illegal "chop shop," to commit mail fraud, to launder money, and to traffic illegally in motor vehicle and motor vehicle parts.
In addition, prosecutors moved to seize Pescatore's home, which he had built at a cost of $8 million; Edmonston's home; and the Baybridge Commons Shopping Center on 208th St., Bayside, as well as buildings at 53-55 and 59-65 Sunrise Hwy., Freeport, and ' West Jericho Tpke., Huntington Station, and to force all the defendants to forfeit a total of $20 million.
Authorities said Pescatore and Edmonston masterminded the auto theft ring out of their firm, Astra Motors, 455 Morgan Ave., Brooklyn.
The firm closed in June 2003 after a raid by a joint task force of the FBI, the Criminal Division of the Internal Revenue Service and the Vehicle Theft unit of the Suffolk County Police Department.
The task force's 18-month investigation into the Astra operation, dubbed "Operation Vin City" for Vehicle Identification Number, found that the goal of the car thieves was to resell cars with seemingly legitimate papers on the open market, according to Assistant United States Attorney Lara Treinis Gatz and Assistant Suffolk County District Attorney William McDonald.
Most of the stolen cars were "laundered" in an unusual way, the prosecutors said.
The thieves would steal a car, strip it of most of its parts and leave the abandoned hulk on the street.
They would then call the police anonymously and claim they had seen an abandoned car on the street, Treinis Gatz said.
Police would retrieve the cars and turn them over to the auto insurance companies, which hold regular auto auctions open only to dealers. An Astra representative would buy the car at auction and resell it for $1,000 or so above the auction price back to the thieves, who then replaced the stripped parts and had a seemingly legitimate car to resell.
In some cases, the accused would buy cars that had been so badly damaged in accidents, fires or floods that they could not be safely repaired, officials said. But the accused repaired the cars anyway and then created paperwork that made it seem as if they had been legally rebuilt, creating what New York FBI head Pasquale D'Amuro called "little more than scrap-metal- wheels" that pose a potential safety hazard.
Agents and police have made it a priority to locate these cars and remove them from the road, officials said.
Other schemes used by the ring included bribing motor vehicle department employees outside of New York to provide seemingly legitimate titles to stolen cars, and creating "VIN kits" by stripping the VIN number off wrecked cars and selling them to car thieves to use on stolen cars, officials said.
As a sideline, the ring rented out specially designed cars to drug dealers for $10,000-a-day that were equipped with secret compartments to hide narcotics, according to Treinis Gatz.
The defendants pleaded not guilty at arraignment before U.S. District Judge Thomas Platt in Central Islip.
Edmonston was held without bail after prosecutor Gatz said he had threatened a witness in the case and was under continuing investigation for allegedly taking several kilos of heroin that had been hidden in a secret compartment by a drug dealer who had "rented" the car from him. Pescatore was released on $3 million bail.
Edmonston's layer, Mark Cohen of Manhattan, declined to comment. Pescatore's lawyer, Martin Adelman of Kew Gardens, said his client was innocent.
All the defendants face up to 20 years in prison if convicted.
Chop and shop
Court records detail how members of an alleged car-theft ring made off with a brand new Cadillac in 2001 and resold it as a legitimate vehicle.
1. LYNBROOK
2001 Cadillac DeVille DTS is stolen from new-car dealership. Sticker price is $46,000.
2. LINDENHURST
Stripped of its body panels, bumpers, wheels, lights, seats and airbags, car is dumped behind a King Kullen. Accomplice calls 911 to report it.
3. MEDFORD
Police take hulk of car to an auction held by auto insurance companies. Front man buys it for $10,000, sells it back to accomplices for $11,000, making $1,000 in profit.
4. ROSELLE PARK, N.J.
Car is now reassembled with original parts, and Virginia papers have been fraudulently obtained from a DMV employee (who is now cooperating with police). Accomplices sell the "repossessed" car to a New Jersey dealer for $33,000. Advertised as a used car, it is sold to a couple for $37,000.