Facing automotive fraud charges in California can feel like being trapped in a legal maze. With strict enforcement and aggressive prosecution in Los Angeles, what starts as confusion over paperwork or a vehicle’s history can quickly escalate into serious criminal allegations.

Charges like odometer tampering, VIN alteration, or deceptive dealership practices aren’t just misdemeanors — they often carry severe penalties, including felony convictions that can result in up to 3 years in prison and fines reaching tens of thousands of dollars per violation.

Because the consequences can profoundly impact your freedom, finances, and future, it’s crucial to immediately seek skilled legal representation.

At Helfend Law Group, attorney Robert M. Helfend knows how to navigate these complex charges to protect your rights and interests.

Call Today – 800-834-6434

Understanding automotive fraud in California

“Automotive fraud” refers to a range of deceptive practices involving vehicles. In California, auto fraud can be prosecuted under various laws depending on the specific conduct. Prosecutors most frequently target:

Odometer Rollback (Odometer Fraud)

Rolling back or altering a car’s mileage reading to make it appear less used. This is explicitly illegal under California Vehicle Code §28050.1, which makes odometer tampering a criminal offense. It’s also banned by federal law (49 U.S.C. §32703), since odometer fraud often involves interstate sales. Each instance of odometer tampering is a separate offense and can lead to serious penalties. For example, selling a car with a tampered odometer violates state law and can even trigger federal prosecution in large-scale schemes.

Title Washing

Hiding a vehicle’s salvage or damage history by fraudulently altering or “washing” the title. This often involves moving a salvaged vehicle through different states to obtain a “clean” title with no damage branding. Title washing can be achieved by forging or altering title documents or Vehicle Identification Numbers (VINs) – all of which are crimes. In California, it is illegal to alter or deface a VIN (Vehicle Code §10750) with intent to defraud. This includes physically tampering with VIN plates or altering the VIN on registration papers.

Such conduct (commonly used in title washing schemes) is a misdemeanor offense punishable by up to 1 year in jail and a $1,000 fine. Likewise, forging or falsifying a car title or registration is prosecuted under Vehicle Code §4463, which is a “wobbler” (meaning it can be charged as a misdemeanor or felony). A felony conviction under §4463 can bring up to 3 years in jail and fines up to $10,000, in addition to any restitution for victim losses.

VIN Tampering (Vehicle Identification Number Fraud)

This overlaps with title washing. Criminals may remove, swap, or alter VIN plates on a vehicle to conceal its identity – often to sell a stolen car or to misrepresent the car’s history. California Vehicle Code §10750 explicitly prohibits intentionally altering or removing a VIN without DMV authorization. As noted, violating this law is a misdemeanor offense.

Even possessing or selling a vehicle knowing its VIN has been tampered with is a crime (Vehicle Code §10751), which can lead to up to 6 months in county jail for lower-value vehicles, or up to 1 year if the vehicle’s value exceeds $950. In practice, VIN tampering and title fraud often go hand-in-hand – for instance, a “washed” title might use a different VIN to hide the car’s salvage status.

Loan/Lease Fraud

This refers to fraudulent schemes involving auto financing. One common example is providing false financial information on a car loan or lease application (e.g. using a stolen identity or fake income documents to get approved).

Knowingly making false statements to obtain a loan or credit is illegal under California Penal Code §532a(1). If you misrepresent your financial status to a lender to get a car loan, you can be charged with this felony, which carries up to 3 years in prison. Another form of loan/lease fraud is embezzlement of a leased or rented vehicle – for instance, willfully failing to return a rental car or lease. California Vehicle Code §10855 provides that not returning a leased vehicle within the agreed time can be treated as auto theft (embezzlement of the vehicle).

Depending on the vehicle’s value and circumstances, this can result in grand theft auto charges (Penal Code §487) or other felony theft charges. In essence, any scheme to obtain or keep a vehicle by deceit – whether by falsifying loan documents or absconding with a rental – can lead to criminal prosecution.

Dealership fraudulent misrepresentation

Auto fraud isn’t limited to individuals – car dealerships and salespeople can face criminal scrutiny for deceptive sales practices. Fraudulent misrepresentation by dealerships includes knowingly lying about a vehicle’s history or condition to make a sale.

Examples include odometer tampering by a dealer, concealing prior accidents or frame damage, “bait-and-switch” advertising, or falsifying financing terms. California law considers it auto fraud when a seller intentionally hides or misrepresents critical facts like prior accidents, true mileage, or title status. While many such cases are handled as civil consumer fraud, egregious dealership scams can result in criminal charges – typically under general fraud statutes such as theft by false pretenses (Penal Code §§484/532) or even grand theft if the vehicle’s value is high.

For instance, a dealer who sells multiple cars with rolled-back odometers or forged titles could face felony fraud charges. California’s Consumer Legal Remedies Act (CLRA) and Unfair Competition Law also prohibit deceptive auto sales practices, allowing civil penalties, but district attorneys may pursue criminal fraud charges when there is clear evidence of intent to defraud customers. Simply put, it is against the law for a dealer to intentionally defraud a car buyer – and prosecutors in California have not hesitated to charge dealers in blatant fraud schemes (such as selling cars with altered odometers).

Laws and penalties for auto fraud in California

California Penal Code and Vehicle Code provisions cover the above types of auto fraud, with penalties ranging from misdemeanors to felonies:

Odometer Tampering

Under California Vehicle Code §§28050 – 28051, it is a misdemeanor offense to tamper with an odometer or to operate a vehicle with a nonfunctional odometer with intent to defraud. Each act of rollback is a separate crime. A misdemeanor in California can lead to up to 1 year in county jail and a $1,000 fine (plus court assessments).

However, odometer fraud cases often escalate in severity. Large-scale odometer schemes (involving many vehicles or crossing state lines) can trigger federal charges, as odometer fraud is also a federal felony.

Federal law allows penalties up to 3 years in prison and $10,000 in fines per violation, and in practice we have seen courts impose substantial fines and restitution. For example, two Southern California men charged in an odometer rollback conspiracy faced up to 3 years in federal prison and as much as $1 million in fines each under federal law.

In another case, a Tarzana man pleaded guilty to altering hundreds of odometers and was sentenced to 24 months in federal prison plus over $420,000 in restitution to victims.

Bottom line: even though basic odometer tampering is a misdemeanor under state law, prosecutors can aggregate multiple frauds and pursue felony-level consequences, especially in Los Angeles where federal authorities work with the DMV to crack down on these crimes.

Title Fraud and VIN Alteration

Forging, counterfeiting, or altering vehicle title documents (ownership certificates, registration, etc.) is addressed by Vehicle Code §4463, which as noted is a wobbler.

As a misdemeanor, a §4463 violation can mean up to 1 year in jail and $1,000 fine; as a felony, penalties jump to 16 months, 2 or 3 years in jail and up to $10,000 in fines. Courts also typically order restitution for any financial loss (for example, repaying a victim who overpaid for a “washed” title car). Altering a Vehicle ID Number (VIN) or possessing a vehicle with an altered VIN is illegal under Vehicle Code §§10750–10751. Intentionally tampering with a VIN (e.g. stamping a new number on the car or swapping VIN plates) is a misdemeanor punishable by up to 1 year in county jail.

Simply knowing a car’s VIN has been removed or altered and trafficking in that car or its parts is also criminal (often a misdemeanor with up to 6 months jail, or 1 year if the vehicle’s value is above $950). Additionally, if a defendant filed any false vehicle transfer forms with the DMV (for example, submitting fake paperwork to obtain a clean title), they could face a separate felony charge under Penal Code §115 (filing false documents), which carries 16–36 months in prison per count.

In summary, California law treats title and VIN fraud as serious crimes – multiple charges can be stacked, and felony charges are likely if the scheme was elaborate or involved stolen vehicles.

Auto Loan/Lease Fraud

Cases involving fraudulent auto financing can be charged under several statutes. If the fraud involves lying to a financial institution (for instance, using a fake ID or false credit information to secure an auto loan or lease), prosecutors may invoke Penal Code §532a(1) – making false financial statements to obtain a loan.

This offense is a felony (16 months, 2 or 3 years prison) or a wobbler, depending on the specifics, with up to 3 years in state prison upon conviction. Identity theft (Penal Code §530.5) charges are also common if someone used another person’s identity or credit to get a vehicle.

And if a person obtains a car through fraud and keeps it, that act can be charged as theft by false pretenses (Penal Code §532) or grand theft auto (Penal Code §487(d)(1)) if the vehicle’s value exceeds $950. Not returning a leased or rented vehicle (Vehicle Code §10855) is legally considered embezzlement. Law enforcement often waits a short grace period (72 hours past the return date, per the statute) and if the car is not returned, it’s reported as a stolen vehicle.

Prosecutors can charge this as grand theft auto or a specific §10855 violation. Penalties will depend on whether the case is filed as a misdemeanor or felony (which in turn depends on the vehicle’s value and the defendant’s intent). In Los Angeles, authorities tend to treat organized loan/lease fraud schemes sternly – e.g., ring leaders of straw-buyer schemes or sublease scams may face multiple felony counts, significant prison time, and restitution orders to banks or leasing companies.

Dealership Fraud (Consumer Fraud by Dealers)

When a dealership itself is accused of fraud, the penalties can range from regulatory actions to criminal charges. California DMV can suspend or revoke a dealer’s license for unlawful practices (such as engaging in odometer fraud or selling cars without disclosing salvage titles). Criminally, a dealer or salesperson who intentionally defrauds customers could be charged under general fraud statutes.

For instance, selling a car by knowingly misrepresenting its history can be prosecuted as grand theft by false pretenses, a felony if the car’s price was high. Each fraudulent sale can be a separate count. In a high-profile example, an L.A.-area salesman was involved in an odometer rollback scheme and ultimately pleaded guilty to federal conspiracy charges, receiving a one-year prison sentence and over $115,000 restitution.

While not every dealer misrepresentation will lead to handcuffs, Los Angeles prosecutors have shown an increased willingness to criminally prosecute auto dealers for systematic fraud (especially cases involving senior or vulnerable victims, or large financial harm). Additionally, California’s civil penalties for dealer fraud are steep – under laws like the CLRA and Unfair Competition Law, a dealer can face heavy fines and customer lawsuits – so there is substantial pressure on dealerships to avoid fraudulent practices. If criminal charges do occur, a dealer could face not only prison and fines but also restitution to all defrauded customers and permanent loss of their dealer license.

Trends in Los Angeles auto fraud enforcement

In recent years, Los Angeles authorities have ramped up enforcement against automotive fraud. Both state and federal agencies are actively pursuing these cases, and high-dollar fraud schemes often involve joint investigations by the DMV, local law enforcement, and federal agencies:

Joint Task Forces & Investigations – Los Angeles has seen multi-agency operations targeting auto fraud rings. For example, the California DMV’s Investigations Division works closely with the National Highway Traffic Safety Administration (NHTSA) Odometer Fraud Unit on major cases. In one undercover operation, a local dealership cooperated with authorities to catch employees rolling back odometers – investigators even provided vehicles to set up a sting. The fact that federal officials are involved in what might seem like local fraud cases shows how serious these crimes are taken. If a fraud involves crossing state lines (common with title washing or online car sales), federal jurisdiction comes into play. Los Angeles, being a major auto market, has been a focal point for these crackdowns.
Increased Prosecutions and Publicized Convictions – Prosecutors in L.A. County have publicly highlighted successful auto fraud prosecutions to deter would-be offenders. A notable recent case in 2024 involved a San Fernando Valley man who stole the titles to dozens of cars by submitting forged documents to the DMV – effectively transferring cars into his name without owners’ consent. He was prosecuted federally (alongside unrelated fraud charges) and sentenced to 17½ years in prison for the scheme. Another widely reported case saw two men in Southern California convicted in an odometer rollback conspiracy affecting hundreds of vehicles; as mentioned, one received 2 years in prison and hundreds of thousands in restitution. The Los Angeles Times and Department of Justice press releases about these cases serve as a warning: engaging in auto fraud can lead to felony charges and prison time, not just civil liability. Officials often emphasize the economic harm and safety risks caused by auto fraud. In short, the trend in L.A. is toward aggressive enforcement. There have been dedicated Auto Fraud Task Forces (sometimes as part of broader auto-theft or insurance fraud units) and special prosecution teams (in the District Attorney’s office) focusing on crimes like odometer tampering, staged accidents, and dealer fraud. The goal is to protect consumers and send a message that Los Angeles will not be a haven for automotive scam artists.
Consumer Awareness and Reporting- Another trend is the push for public awareness. The L.A. County District Attorney’s Office has issued fraud alerts on common car scams – for example, warning about odometer rollback scams in its community outreach campaigns. The DMV encourages buyers to check a vehicle’s history and has hotlines for reporting suspected odometer fraud. From a defense perspective, this means that more cases are being brought to light by vigilant consumers or whistleblowers, sometimes before major damage occurs. It also means prosecutors may come down hard to “make an example” of those caught, given the public interest in these cases.

Defending against auto fraud charges

Being accused of automotive fraud is frightening, but being charged does not mean you’ll be convicted. There are numerous defenses and strategic approaches that an experienced auto fraud defense lawyer will explore.

At Helfend Law Group, we analyze every aspect of the case to build a strong defense. Some common defenses in auto fraud cases include:

Lack of Intent to Defraud – Fraud crimes generally require intent – the prosecution must prove you intentionally deceived someone. If you lacked intent or knowledge, you haven’t committed criminal fraud. For example, perhaps you sold a car not knowing its odometer had been altered by a prior owner, or you unknowingly submitted paperwork that had an error. We would highlight any evidence that you were not aware of the deception. In odometer tampering cases, showing that you believed the mileage was accurate (or that someone else rolled it back without your knowledge) can be a powerful defense. In title fraud cases, if you genuinely thought the title was clean or had no intent to falsify documents, that lack of fraudulent intent is a key defense. Bottom line: no intent, no crime.
Insufficient Evidence – Auto fraud cases can be complex, and the evidence might be circumstantial. We often attack the strength of the prosecution’s evidence. Remember, the burden is on the state to prove guilt beyond a reasonable doubt. If the case relies on inferences (e.g. a paper trail that is not directly tied to you, or assumptions about who made an odometer change), we will argue that it’s not enough to convict. For instance, in an alleged dealership fraud, the prosecution must link you to the specific misleading statements or document alterations. If there’s no clear proof (like witnesses, video, or fingerprints on a tampered odometer) and only a series of coincidences or co-worker accusations, we will underscore those evidentiary gaps. We may also bring in expert witnesses – for example, a forensic mechanic might testify that an odometer discrepancy could be due to a malfunction or repair, not a criminal act. Weak evidence can lead to reduced charges or even a full dismissal if effectively challenged in court.
Mistake or Lack of Knowledge – Sometimes what looks like “fraud” is actually an honest mistake or a clerical error. We investigate whether a mileage discrepancy or title error was the result of negligence rather than intent. For example, a DMV clerk or prior owner might have made a paperwork error that gets blamed on the accused. Odometers can malfunction or be replaced legally (with documentation) – if a mechanic set a replacement odometer to zero (as allowed by law, with notice) and someone later misinterpreted this, it’s not a crime. We will gather maintenance records, CarFax reports, DMV communications – any evidence showing a plausible innocent explanation for the situation. Juries respond to credible explanations that raise doubt about criminal intent. Even in loan fraud cases, if a client’s finances were misrepresented by a third-party broker or there was a misunderstanding in the application, it can negate criminal intent (you didn’t knowingly provide false info).
Constitutional Violations (Illegal Search / Interrogation) – Auto fraud investigations sometimes involve extensive paper trails and digital evidence, and authorities may cross the line in gathering evidence. We scrutinize how evidence was obtained. If investigators searched your dealership or home without a proper warrant, or seized your records improperly, we can file motions to suppress evidence due to Fourth Amendment violations. Similarly, if you were questioned by police or DMV investigators and not read your Miranda rights, any incriminating statements you made could be thrown out. By challenging unlawfully obtained evidence, we can weaken the prosecution’s case or even get it dismissed.
Defense Strategy in Court – Auto fraud cases often involve technical details (vehicle history reports, financial documents, etc.). We work to simplify the narrative for a jury: e.g., “My client is a reputable mechanic who replaced an odometer as part of a repair – he did everything by the book and had no reason to commit fraud.” We may show the client’s long history of honest business dealings to counter allegations of intent to defraud. Another strategy is negotiating with prosecutors early – sometimes, especially in complex white-collar cases, we can persuade the DA that this was a one-time mistake or suggest a civil settlement rather than criminal charges. When appropriate, we also explore diversion programs (in some non-violent fraud cases, there are programs where a defendant can avoid conviction by paying restitution and completing probation). Our ultimate goal is to either beat the charges or minimize the impact on your life – whether that means a not guilty verdict, a dismissal, or a reduced plea to a lesser offense.

Throughout the process, our firm will be your advocate and guide.

We understand the stakes – your freedom, career, and reputation are on the line. Auto fraud charges can be very technical, and prosecutors might try to overwhelm you with documents and data. We cut through the noise and build a compelling case in your defense.

Our attorneys know how Los Angeles courts handle these cases, and we know many of the investigators and prosecutors involved in auto fraud matters. This experience allows us to negotiate from a position of strength and to present the most persuasive defense if your case goes to trial.

Fight back against auto fraud charges – We can help

An auto fraud accusation in California can feel overwhelming, but you do not have to face it alone. The Helfend Law Group is here to provide knowledgeable, proactive defense every step of the way. We’ve successfully defended clients in Los Angeles and throughout California against charges of odometer tampering, title fraud, financial auto scams, and more. Our team is ready to investigate the facts, challenge the prosecution, and protect your rights and livelihood.

If you or someone you know has been accused of automotive fraud, put a powerful defense on your side. Call us today at 800-834-6434 for a free, confidential consultation.

Published May 30, 2025.