Springfield Man Pleads Guilty to Mail Fraud, Aggravated Identity Theft, and Money Laundering

SPRINGFIELD, Mo. – A Springfield, Mo., man pleaded guilty in federal court today for his role in a mail fraud scheme in which false documents were submitted to the Missouri Department of Revenue to obtain mechanics liens and titles for vehicles that had previously been reported stolen.

Dennis Arthur Cleveland, 75, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count each of mail fraud, aggravated identity theft, and money laundering.

According to the plea agreement, Cleveland, as the owner of Affordable Towing, directed his employees, who he knew were submitted fraudulent documents, to send those documents to the Missouri Department of Revenue.  These fraudulent documents were used to obtain substitute or replacement mechanics liens and vehicle titles that would allow Cleveland to sell the vehicles.  In each instance, the documents submitted by Cleveland and his employees claimed to have received permission from the vehicle’s owner.  Upon reviewing the documents, it was discovered that none of the listed vehicle owners gave Cleveland or Affordable Towing permission to seize or sell their vehicle.  Further, in all these documents, a signature in the name of the vehicle’s owner was provided and was confirmed to be a forgery.  In those instances that Cleveland obtained a replacement lien or title, he would sell the vehicle at a used car dealership.  In those instances that Cleveland failed to receive a replacement title or mechanics lien, he would send the vehicle to a local scrapyard. Under either circumstance, Cleveland took all the proceeds from the vehicle’s sale or scrapping of these vehicles for himself.  Each of the vehicles involved in this scheme were confirmed to have been reported stolen and neither Cleveland or Affordable Towing had permission to possess, sell, or scrap any of these vehicles.

Under federal statutes, Cleveland is subject to a sentence of up to 20 years in federal prison without parole for the offense of mail fraud.  Further, Cleveland is subject to a sentence of up to 10 years in federal prison without parole for the offense of money laundering.  Finally, Cleveland is subject to a sentence of 2 years, run consecutively to the mail fraud and money laundering, for the offense of aggravated identity theft.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney It was investigated by the Missouri Department of Revenue, Compliance and Investigation Bureau, the United States Post Inspection Service, the Internal Revenue Service – Criminal Investigation, and the Environmental Protection Agency.