NHTSA/Odometer Fraud (CLOSED)
Most Recent Update 3/04 (See end of document)
United States v. Daniel Menake, Criminal No. 99-CR-996 (E.D.N.Y.)
9/01 Update:
The United States Department of Justice, the National Highway Traffic
Safety Administration (NHTSA), and the New York City Police Department
have concluded an investigation in the New York area into the sale of
used motor vehicles with altered odometers. Four hundred and seventy-seven
vehicles were found to have tampered odometers.
In September 2000, Daniel Menake pled guilty in federal district court
in Brooklyn, New York, to a five-count Information charging him with
conspiracy to commit odometer fraud and various related offenses, giving
false odometer statements, and interstate transportation of falsely
made, forged, altered and counterfeit securities – namely, certificates
of title relating to certain motor vehicles. The defendant also pled
guilty to one count of conspiracy to commit money laundering. The defendant's
convictions were based on his role in a fraudulent scheme to misrepresent
the mileage of vehicles to consumers.
On January 14, 2001, Daniel Menake was sentenced by the Honorable Sterling
Johnson, United States District Judge for the Eastern District of New
York. The judge sentenced the defendant to twelve months and one day
imprisonment. He also sentenced him to a three-year period of supervised
release. Mr. Menake was ordered to pay $24,000 in restitution to the
owners of six specific rolled-back vehicles that he was involved in
selling. The six victims have already been notified. In addition, Mr.
Menake was ordered to forfeit $75,000 to the United States. The case
remained under seal until August 24, 2001.
The criminal forfeiture awarded by the Court may be available as restitution
for victims in this case. In September 2001, the Department of Justice
sent a notification to identifiable victims of the fraud (New
York victims; Non-New York victims)
and invited them to submit petitions for
remission pursuant to 28 C.F.R. § 9.1 - 9.9, which provides for
the use of forfeited property to provide restitution to qualified victims.
Victims who wish to be considered for restitution are asked to return
the petition to the address below no later than October 22, 2001.
If you already submitted a petition, and your address has changed since
the date you submitted it, please send us your current address. You
should note in your correspondence the name of the case above and the
VIN (Vehicle Identification Number or serial number which consists of
the 17 alpha-numeric characters) of your car.
Paralegal Specialist
Bayside Auto Sales, Inc.
United States Department of Justice
Consumer Protection Branch
P.O. Box 386
Washington, D.C. 20044
12/01 Update:
Submitted petitions being reviewed.
3/02 Update:
No change in status.
6/02 Update:
No change in status.
10/02 Update:
No change in status.
12/02 Update:
No change in status.
6/03 Update:
No change in status.
11/03 Update:
No change in status.
2/04 Update:
Notification letter to claimants regarding monies awarded by Court
as criminal forfeiture and available as restitution for victims will
be sent out in near future.
3/04 Update:
On March 1, 2004, the Asset Forfeiture and Money Laundering Section,
Criminal Division, U.S. Department of Justice, sent letters to victims
who filed Petitions for Remission, notifying them whether their petitions
were granted or denied. Those petitions that were granted will be paid
by mail by the U.S. Marshals Service for the Eastern District of New
York. Petitioners who were denied may apply for reconsideration of the
decision within 10 days of receipt of the notification, pursuant to
the instructions set forth in the letter.
