Contacting ADOT Fraud Hotline helps title fraud victim

PHOENIX –  Contacting the Arizona Department of Transportation (ADOT) helped an elderly widow get her vehicle title cleared and criminal charges brought against a man accused of fraud and theft while acting as an auto broker.  

After the woman contacted the ADOT Fraud Hotline, detectives with ADOT’s Office of Inspector General looked into the complaint and discovered the suspect took advantage of the victim when she was looking to sell and purchase vehicles. The suspect, claiming to be an auto broker, agreed to sell a vehicle and help the woman purchase a newer one after the death of her husband. 

The victim released her vehicle to the suspect so repairs could be made to the vehicle before selling it. She also signed over the title of this vehicle into the suspect’s name. The suspect then sold the vehicle and gave the woman a check with insufficient funds. 

During this time, the suspect located a new vehicle for purchase. The woman then gave the suspect a check to purchase the vehicle. The suspect, who had come to the woman’s residence to complete the transaction on behalf of the dealership, had her electronically sign several documents and advised they were necessary to complete the transactions but in fact established a loan for the vehicle.

The suspect later admitted to writing a check with insufficient funds for the first vehicle as well as keeping the woman’s money intended to purchase the newer vehicle. Instead of paying off the new vehicle, the suspect set up a loan under the woman’s name. She was eventually made aware after being contacted by the lender to establish a payment schedule for a vehicle she believed to be fully paid for already. The suspect, while accepting fees for finding vehicles, was not registered as an auto broker as required by law.

The ADOT Enforcement and Compliance Division (ECD) submitted felony charges of theft and fraudulent schemes for consideration by the Maricopa County Attorney’s Office. While awaiting the outcome of this referral, the Office of Inspector General received information on another fraud scheme involving the suspect. 

The ECD wants customers to be aware of the potential for fraud when purchasing a vehicle.  Before using an auto broker to negotiate a deal, verify they are currently licensed by the ADOT Motor Vehicle Division and have the required bond and license. Individuals who believe they are victims of fraud should contact their local law enforcement agency or make a report to the ADOT fraud hotline.

The victim in this case has since had her new vehicle loan waived by the dealership, and the vehicle is in her name without a lien. 

“Consumers should carefully review all vehicle sales documents before completing a transaction and ensure they receive copies of all agreements and records,” said Lieutenant Ryan Burnham with ADOT’s Office of Inspector General. “We encourage anyone who suspects fraudulent activity related to a vehicle sale or title transfer to report it promptly so investigators can address the issue as quickly as possible.” 

ADOT’s 24-hour Fraud Hotline is available to those who suspect fraud or criminal activity involving driver licenses, title and registration. Please call 877.712.2370, email [email protected] or file a report at azdot.gov/incident-report.

Detectives with ADOT’s Office of Inspector General, which is part of the Enforcement and Compliance Division, also investigate fraud involving driver licenses, VIN inspections, as well as licensed and unlicensed vehicle dealerships. They also support investigations by state, local and federal law enforcement.