US v. Arthur Korn; US v. James Nance


This page lists current CPB case updates accessible to the public.

Note: Under the "Justice for All Act of 2004," crime victims have certain rights described here.

US
v. Arthur Korn; US v. James Nance


NHTSA/Odometer Fraud (CLOSED)

Most Recent Update 10/02 (See end of document)

Interstate Auto Exchange:

6/01 Update:

On February 28, 2001, Arthur Korn pled guilty in federal district court
in Kansas City, Kansas, to a one-count Information that was filed in
the District of Kansas. This information charged Arthur Korn with participating
in a conspiracy to commit odometer fraud and related offenses. Mr. Korn
is presently not in custody.

Arthur Korn is scheduled to be sentenced by U.S. District Judge John
W. Lungstrum on July 16, 2001, at 1:30 p.m. at the United States District
Court, 500 State Avenue, Kansas City, Kansas. It is possible, however,
that this date will change.

As part of Mr. Korn's guilty plea agreement, he has agreed to make
restitution to the victims of his offense. Please note, however, that
no restitution order has yet been entered by the court, and it is unclear
whether Mr. Korn has the financial resources to pay restitution.

The government is in the process of attempting to locate and advise
the owners of the vehicles of their legal rights and obligations. The
government is mailing letters to all identifiable victims of the offenses
committed by Mr. Korn to inform them of the status of this prosecution
and to offer them the opportunity to notify the United States Probation
Office of their losses. Those letters include the government's notification
letter
and a consumer declaration
form
. On-line versions of these documents may be accessed by clicking
on the words above. The consumer declaration should be filled out and
returned to the following address no later than June 29, 2001:

Ms. Sylvia A. Gruenbacher
United States Probation Office
U.S. Courthouse
500 State Avenue
Kansas City, KS 66101-2431
(913) 551-6734 (fax)

Please fill out this form to the best of your ability. Any additional
expenses incurred as a result of owning the vehicle (for example, repairs)
should also be listed. You also may include an attachment if you have
additional information to submit to the probation officer. Make sure
to include your name, the Vehicle Identification Number ("V.I.N."),
and signature on any attachment. Due to the large number of victims
notified, please call the contact person listed only if necessary.

7/01 Update:

On June 21, 2001, James Nance, pled guilty in federal district court
in Kansas City, Kansas, to a three-count Information that was filed
in the District of Kansas. This information charged James Nance with
one count of participating in a conspiracy to commit odometer fraud
and related offenses, one count of odometer tampering, and one count
of mail fraud. As part of his guilty plea, Mr. Nance admitted that he
was a co-conspirator with Arthur Korn in the operation of Interstate
Auto Exchange. Mr. Nance is presently not in custody.

James Nance is scheduled to be sentenced by Senior United States District
Judge G. Thomas Van Bebber on September 17, 2001, at 3:00 p.m. at the
United States District Court, 500 State Avenue, Kansas City, Kansas.
It is possible, however, that this date will change.

As part of Mr. Nance's guilty plea agreement, he has agreed to make
restitution to the victims of his offense. Please note, however, that
no restitution order has yet been entered by the court, and it is unclear
whether Mr. Nance has the financial resources to pay restitution. As
part of the sentencing process for Arthur Korn, the government is in
the process of attempting to locate and advise the owners of the vehicles
of their legal rights and obligations. The information obtained with
respect to Mr. Korn's sentencing will also be utilized at Mr. Nance's
sentencing. (If you are a victim and have already submitted a loss declaration
form, you do not need to submit a second loss declaration form.)

7/16/01 Update:

The sentencing dates for both Arthur Korn and James Nance have been
rescheduled. Arthur Korn is now scheduled to be sentenced by U.S. District
Judge John W. Lungstrum on Monday, August 27, 2001, at 1:30 p.m. at
the United States District Court, 500 State Avenue, Kansas City, Kansas.
James Nance is now scheduled to be sentenced by Senior United States
District Judge G. Thomas Van Bebber on September 25, 2001, at 1:30 p.m.
at the United States District Court, 500 State Avenue, Kansas City,
Kansas (rescheduled, see 9/24/01 Update).

9/24/01 Update:

On September 6, 2001, United States District Judge John Lungstrum sentenced
Arthur Korn to 37 months in federal prison for selling cars with rolled-back
odometers. Judge Lungstrum also ordered Arthur Korn to pay a criminal
fine of $5,000, and to pay restitution in the amount of $43,000.11.
Upon release from prison, Judge Lungstrum ordered Arthur Korn to serve
three (3) years supervised release, with a special condition that Arthur
Korn not operate a used car business or participate in the sale of used
motor vehicles. James Nance, Arthur Korn's co-conspirator, was scheduled
to be sentenced on September 25, 2001. However, that sentencing date
has now been moved to October 22, 2001, at 3:00 p.m.

12/01 Update:

On October 22, 2001, United States District Judge T. Thomas VanBebber
sentenced James Nance to eight months (four months in prison/four months
home confinement) for participating in odometer fraud and in various
insurance fraud schemes. Judge VanBebber also ordered Nance to pay $80,753.19
in restitution. Upon release from prison, Judge VanBebber ordered Nance
to serve three (3) years supervised release, with a special condition
that Nance not operate a used car business or participate in the sale
of used motor vehicles.

3/02 Update:

Case complete, no change in status.

6/02 Update:

Case complete, no change in status.

10/02 Update:

No change in status.