Sweeping Fraud Arrests Announced in Pennsylvania Car Title Washing Ring
Published Oct. 5, 2022
Criminal charges were brought against 19 individuals and 13 businesses for “title washing,” Pennsylvania Attorney General Josh Shapiro announced Oct. 5.
The participants in these criminal rings included George Frietto of George’s Garage, Luis Salazar of Salazar Auto Sales and N & G Towing, their employees, several used-car dealers from within and outside Pennsylvania, and an authorized tag and title agency.
These individuals coordinated to purchase totaled vehicles, falsify inspection information and submit fraudulent title applications to PennDOT.
This fraud was designed to bypass rigid requirements for reconstructed titles in states such as New Jersey and Massachusetts, or to make stolen vehicles look legitimate for resale or export.
“These defendants used their positions and knowledge of PennDOT requirements to defraud state and federal authorities, hide stolen vehicles and put unsuspecting drivers at risk,” said Shapiro. “Vehicles that have been totaled must not only be repaired but also undergo an enhanced safety inspection to make sure they are safe. These defendants instead allowed hundreds of heavily-damaged vehicles onto roadways in Pennsylvania, and around the country without even looking at them.”
As part of this criminal scheme, Frietto and Salazar did not complete the enhanced vehicle safety inspections that are necessary in order to make a totaled vehicle road worthy again and instead only completed the paperwork required. Many vehicles that were claimed to have been inspected at their shops never actually entered Pennsylvania.
Frietto, Salazar and the other participants in this criminal racket completed this paperwork not only for those vehicles that have been totaled but also for vehicles that have been stolen. When a stolen vehicle goes through this title washing process, the original Vehicle Identification Number (VIN) is often replaced, and this along with the new title allows for the vehicle to appear legitimate in the eyes of law enforcement and prevents the original owner from reclaiming their vehicle.
As part of this investigation, it was found Frietto claimed to have completed more than 240 “inspections” during a 10-day period in December 2020. During this time, however, investigators conducted surveillance outside of George’s Garage and saw Frietto’s own vehicle was the only one to enter the shop.
As part of each reconstructed title application, Frietto was required to submit photographs of the vehicle he had inspected. Instead, Frietto completed the paperwork using stock photographs of the vehicles which were frequently not the same make and/or model of the vehicle named on the paperwork. On some occasions, he used the same stock photographs for multiple vehicles.
One of Frietto’s employees even admitted to never completing a single enhanced vehicle safety inspection and that Frietto had told his employees they did not need to see a car to complete the inspection paperwork. Despite this, she and her fellow “inspectors” were filling out so many title applications their hands would cramp up, which led them to start preparing the stacks of forms in advance.
Freitto told investigators he charged $60 for each “enhanced inspection” performed at his garage.
The Office of Attorney General also worked with the Lackawanna District Attorney’s Office to uncover these wrongdoings.
The 19 individual defendants were charged, in varying degrees, with corrupt organizations; forgery; washing vehicle titles; deceptive business practices; tampering with public records; false application for certificate of title; altered, forged or counterfeit documents; insurance fraud; and commercial bribery, among other charges.
Charges against the 13 businesses include, in varying degrees, washing vehicle titles; deceptive business practices; tampering with public records; altered, forged or counterfeit documents; and false application for certificate of title.
The defendants are Frietto, John Mulea, Kara Cosgrove, Angel Rios, Peter Tayoun, Sandra Klassner, Alivia Auriemma, Armando De La Paz, Jorge Santos-Hernandez, Pawel Bryla, Eva Contrares, Alvaro Rodriguez, Luis Leyva, Anibelkis Garcia, Sherif Helmy, Salazar, Cynthia Salazar, Jose Rivea-Rivera and Reyna Bonilla.
The 13 businesses charged are George’s Garage in Scranton, PA Tag & Title in Scranton, Luci’s Auto Sales, LLC, in Old Forge, Newroad Motors in Lebanon, Best Value Auto Outlet/Oli’s Auto Sales in Scranton, PBJ Motors in Taylor, ALZ Auto Sales in Mount Pocono, Aquino Auto Mall in Lehighton, EOS Auto Sales in Taylor, Alliance Auto/Alliance Auto Sport, Inc. in Exeter, Salazar Auto Sales in York, N & G Towing, Body Shop and Sales, LLC, in Dover and Beltin Auto Sales, LLC, in York.
This case is being prosecuted by Chief Deputy Attorney General Robert LaBar, Senior Deputy Attorney General John Dickinson and Deputy Attorney General Richard Bradbury. All charges discussed are accusations. The defendants are presumed innocent until proven guilty.
Consumers who believe they may have been a victim of the practices of any of the above dealerships, vehicle inspectors or tag agents, or have information about this or other forms of vehicle or title fraud, should reach out to the Office of Attorney General by emailing the Insurance Fraud Section at firstname.lastname@example.org.
Source: Pennsylvania Office of Attorney General