Car title washing ring busted

Pennsylvania Attorney General Josh Shapiro announced arrests and an abundance of charges against 19 individuals and 13 businesses involved in a car title washing ring Wednesday.

According to a release from the attorney general's office, 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.

Those involved coordinated the purchase of totaled vehicles, falsified inspection information, and submitted fraudulent title applications to the Pennsylvania Department of Transportation in an attempt to bypass rigid requirements for reconstructed titles in states such as New Jersey and Massachusetts, or to make stolen vehicles appear 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," Shapiro said. "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 the scheme, Frietto and Salazar failed to complete the enhanced vehicle safety inspections required for totaled vehicles to be deemed road worthy, instead only completing paperwork. Many vehicles claimed to have been inspected at their shops never even entered the commonwealth.

In addition, Frietto, Salazar and other participants completed paperwork for stolen vehicles. When a stolen vehicle goes through title washing, the original Vehicle Identification Number, or VIN, is often replaced, and along with the new title, the vehicle appears legitimate to law enforcement, preventing original owners from reclaiming their property.

The investigation found that Frietto claimed to have completed over 240 "inspections" through a 10-day period in Dec. 2020. During this time, investigators conducted surveillance outside George's Garage, finding the only vehicle to enter the shop was Frietto's own.

As part of each reconstructed title application, Frietto was required to submit photographs of the vehicles he inspected, but instead, he utilized stock images which were frequently no the same make and or model of the vehicle named in the paperwork. Occasionally, Frietto used the same images for different vehicles.

One of Frietto's employees admitted to never completing a single enhanced vehicle safety inspection, stating Frietto had told his employees that they did not need to see a car to complete the inspection paperwork. The employee noted she and her fellow "inspectors" were filling out so many title applications that their hands would cramp, leading them to prepare stacks of forms in advance.

Frietto told investigators that he charged $60 for each "enhanced inspection" performed at his garage.

"The arrest and search warrants executed today by the Pennsylvania State Police Auto Theft Task Force, the Lackawanna County District Attorney's office, and the Pennsylvania Attorney General's Office emphasize our commitment to investigate any type of fraud associated with motor vehicles, titling, and affiliated records," Captain James Cuttitta with the Bureau of Criminal Investigation, Special Investigations Division, said. "These crimes not only victimize the Commonwealth but also place all drivers at risk from heavily-damaged vehicles that never underwent the required safety inspection."

The Office of the Attorney General worked alongside the Lackawanna District Attorney's Office during the investigation.

"Fraudulent titles not only permit unsafe vehicles to be on the roadway, it enables stolen vehicles to avoid detection by authorities" District Attorney Powell said. "Northeastern Pennsylvania was one of the hubs of these illegal operations, and we are indebted to the Attorney General for shutting down this dangerous enterprise."

The 19 individual defendants charged include George 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 and Sherif Helmy.

Those individuals were charged 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.

The 13 businesses charged include 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.

Charges against the 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 case against the businesses and individuals 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, and the attorney general's office notes defendants are presumed innocent until proven guilty.

Consumers who believe that 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 [email protected].