Fox Mews

As classic cars become more than just aspirational items and more investment pieces, buyers should always stay vigilant. Today, it's easy for criminals to scam would-be buyers out of a sale with a little creativity and the Internet. Many enthusiasts found that out the hard way over the past two years.

The FBI and the United States Attorney for the Southern District of New York exposed a $4.5 million classic car fraud ring and unsealed an indictment detailing the criminals' doing last month. In total, 25 defendants were charged with conspiracy to commit wire fraud and conspiracy to commit concealment money laundering.

The criminals, most of Eastern European descent, launched the nationwide fraud ring in November 2016 and the criminal activity continued through July of 2018. U.S. officials said the scheme involved posting fake classic car ads online, luring buyers, and setting up shell corporations to transfer money out of the U.S.

Victims responded to ads for various classic cars on popular car sale sites, and once the two parties agreed on a final price, the defendants would direct the buyers to automotive transportation companies. The transport companies were actually the shell corporations ready to receive payment and wait for one of the 25 criminals to withdraw the funds. Victims never received the car they thought was being delivered.

Upon receiving payment, the group would begin withdrawing money from the shell corporations' bank accounts sometimes the same day victims wired money. The group worked to ensure withdrawals were in varied denominations to not tip off financial institutions or authorities to the illegal activity. The money was then sent to various Eastern European countries. Most of the victims were never able to recover the money sent and some have been left paying for auto loans without ever purchasing a car.

Each defendant could be in for up to 50 years in prison for their crimes and victims will be eligible for restitution.

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In total, 25 defendants were charged with conspiracy to commit wire fraud and conspiracy to commit concealment money laundering.

Were any arrested....

There is something still to be said for a face to face deal.

Plenty of cars for sale this weekend right here ...https://www.nsra-usa.com/2018-events.html

GGF

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Originally posted by HRK:

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In total, 25 defendants were charged

Were any arrested....

I think you answered your own question, in your own post!?

Charged = arrested.

Caveat Emptor!

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Originally posted by bubbatime:

quote:

Originally posted by HRK:

quote:

In total, 25 defendants were charged

Were any arrested....

I think you answered your own question, in your own post!?

Charged = arrested.

I'm pretty sure a person can be charged with a crime even before they are apprehended or arrested. I think I remember Bin Laden or someone gettting formally charged before being caught...

I was going to say this. Someone who's out of the country and be charged and indicted, but the FBI, USMS, DEA, etc have to track them down, and get the country where they're located to arrest and extradite them. This is not always possible (think Russia, China, etc.).

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Originally posted by SBrooks:

quote:

Originally posted by bubbatime:

quote:

Originally posted by HRK:

quote:

In total, 25 defendants were charged

Were any arrested....

I think you answered your own question, in your own post!?

Charged = arrested.

I'm pretty sure a person can be charged with a crime even before they are apprehended or arrested. I think I remember Bin Laden or someone gettting formally charged before being caught...

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Originally posted by JALLEN:


The criminals, most of Eastern European descent

Why is is that a large number of scumbag criminals seem to be Eastern European?

EVERY time they bust a ring of these scumbags around here putting skimmers on ATM's and gas pumps, it's freaking Eastern Europeans.

I don't get it, is it like a cottage industry to be a scumbag criminal in that region of the world?

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Originally posted by PASig:

quote:

Originally posted by JALLEN:


The criminals, most of Eastern European descent

Why is is that a large number of scumbag criminals seem to be Eastern European?

EVERY time they bust a ring of these scumbags around here putting skimmers on ATM's and gas pumps, it's freaking Eastern Europeans.

I don't get it, is it like a cottage industry to be a scumbag criminal in that region of the world?

Actually, yes. Just like Nigerians have their email scams, SE Asia has opioids and human trafficking, Italians have the mob, so do Eastern Europeans.

Good technical skills, not a lot of local opportunity, socialism based moral degradation, lack of extradition treaties.

quote:

Originally posted by PASig:

quote:

Originally posted by JALLEN:


The criminals, most of Eastern European descent

Why is is that a large number of scumbag criminals seem to be Eastern European?

EVERY time they bust a ring of these scumbags around here putting skimmers on ATM's and gas pumps, it's freaking Eastern Europeans.

I don't get it, is it like a cottage industry to be a scumbag criminal in that region of the world?

quote:

I think you answered your own question, in your own post!?

Charged = arrested.

Pretty sure it doesn't work that way, you can be arrested then Charged with a crime, but being Charged doesn't mean you've been arrested, otherwise why would they need to serve warrants for an arrest....

We’re victims of terminological inexactitude here, relying on a version of events written by a mere journalist.

A grand jury issues an indictment. Before it is publicized, often, arrests are made and when the story comes out, the accused are charged which might also infer in custody. Maybe they have made arrangements to surrender on a date certain.

There is just no way to know what the status is from what we have in this story.