Authorities in Miami-Dade County have apprehended 21 individuals in connection to a major credit fraud scheme targeting car dealerships throughout South Florida. This operation, spearheaded by the Organized Crime Bureau’s Auto Crimes Taskforce, revealed a multi-million dollar credit fraud operation that has significantly impacted the local automotive market.
Miami-Dade Sheriff Rosie Cordero-Stutz highlighted the innovative nature of this fraudulent trend, stating that “straw buyers” are manipulating the system with counterfeit documents such as fake pay stubs and falsified W-2 forms. These deceitful tactics allow multiple vehicle purchases before the credit reports are updated, sometimes resulting in over a dozen cars being acquired within a single week.
The fraudulent activities extend beyond purchase. Cordero-Stutz noted that a single straw buyer might acquire up to 20 vehicles weekly. These cars are then either “lien washed” – a process where the lien is falsely removed – exported with counterfeit vehicle identification numbers (VINs), or illegally subleased. Alarmingly, these illicitly subleased vehicles are frequently linked to violent crimes such as shootings and robberies.
The operation, dubbed “Operation: Lien to Clean,” was launched earlier this year. Officials report that fraudulent activities involved the purchase of around 100 cars, leading to losses exceeding $5 million. In a concerted effort, authorities have successfully recovered 53 vehicles, valued at $4.3 million.
The investigation was triggered by complaints from conscientious car dealerships detecting irregularities in transactions and promptly notifying law enforcement. Sgt. Luis Pez from MDSO mentioned that these reports were pivotal in uncovering the fraud.
Sheriff Cordero-Stutz underscored Miami-Dade as a notable target for such credit bust-out frauds but affirmed the determination of law enforcement to thwart these organized crimes. Although several of the apprehended suspects have been released on bail, investigations remain active, with more arrests anticipated.
This case exemplifies the proactive measures taken to combat sophisticated fraud schemes, emphasizing the collaboration between law enforcement and the community in tackling organized crime.