US v. Daniel Menake

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.