Number range CHAPTER

***[Note: the names of individuals and dealerships have been changed to
fictitious names.]{.underline}***

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF PENNSYLVANIA

+--------------------------------+---+-----------------------------------+
| UNITED STATES OF AMERICA,      |   | CRIMINAL NO.                      |
|                                |   |                                   |
| v\.                            |   | DATE FILED:                       |
|                                |   |                                   |
| JAMES JONES,                   |   | VIOLATIONS:                       |
|                                |   |                                   |
| PHILLIP JONES, and             |   | 18 U.S.C. § 371                   |
|                                |   |                                   |
| FRED FILBERT                   |   | (Conspiracy - 1 Count)            |
|                                |   |                                   |
|                                |   | 18 U.S.C. § 2314 (Interstate      |
|                                |   | Transportation of Falsely Made    |
|                                |   | Securities - 10 Counts)           |
|                                |   |                                   |
|                                |   | 49 U.S.C. § 32705(a), 32709(b)    |
|                                |   | (False Odometer Statement - 10    |
|                                |   | Counts)                           |
|                                |   |                                   |
|                                |   | 18 U.S.C. § 2                     |
|                                |   |                                   |
|                                |   | (Aiding and Abetting)             |
+--------------------------------+---+-----------------------------------+

[I N D I C T M E N T]{.underline}

[COUNT ONE]{.underline}

THE GRAND JURY CHARGES THAT:

1\. At times relevant and material to this Indictment:

\(a\) Defendant **JAMES JONES** was engaged in the buying and selling of
used motor vehicles. **JAMES JONES** operated under the name ABC
Automotive, a licensed New York dealership that bought and sold used
cars in the Eastern District of Pennsylvania and elsewhere. **JAMES
JONES** also did business using other dealership names, both real and
fictitious, including XX & YY Auto.

\(b\) Defendant **PHILLIP JONES** was engaged in the buying and selling
of used motor vehicles. **PHILLIP JONES** was the owner and operator of
DEF Dealership, a licensed New York dealership that bought and sold used
cars in the Eastern District of Pennsylvania and elsewhere. **PHILLIP
JONES** also did business using other dealership names, both real and
fictitious, including XX & YY Auto.

\(c\) Defendant **FRED FILBERT** was engaged in the buying and selling
of used motor vehicles. **FRED FILBERT** did business using the name VVV
Sales, a licenced New Jersey dealership. **FRED FILBERT** operated VVV
Sales as a \"title wash,\" through which altered high mileage titles
were submitted to the New Jersey Department of Motor Vehicles and new,
\"clean,\" low mileage titles were issued to VVV Sales. **FRED FILBERT**
also operated under other dealership names, both real and fictitious,
including Autos Galore and XYZ Express, in the Eastern District of
Pennsylvania and elsewhere.

2\. As used in this Indictment, the following vehicle numbers refer to
the vehicles identified below:

[Vehicle No.]{.underline} [Year/Make]{.underline} [Vehicle
Identification Number]{.underline}

1 1994/Buick xxxxxxxxxxxxxxxxx

2 1995/Nissan xxxxxxxxxxxxxxxxx

3 1996/Mercury xxxxxxxxxxxxxxxxx

4 1993/Lincoln xxxxxxxxxxxxxxxxx

5 1995/Buick xxxxxxxxxxxxxxxxx

6 1996/Ford xxxxxxxxxxxxxxxxx

7 1997/Lincoln xxxxxxxxxxxxxxxxx

8 1995/Ford xxxxxxxxxxxxxxxxx

9 1996/Buick xxxxxxxxxxxxxxxxx

10 1993/Buick xxxxxxxxxxxxxxxxx

[THE CONSPIRACY]{.underline}

3\. Beginning at a time unknown to the Grand Jury, but at least as early
as January 1997, and continuing through at least November 1998, the
exact dates being unknown to the Grand Jury, in the Eastern District of
Pennsylvania and elsewhere,

**JAMES JONES,**

**PHILLIP JONES, and**

**FRED FILBERT**

defendants herein, did combine, conspire, confederate, and agree with
each other, and other persons known and unknown to the Grand Jury, to
commit offenses against the United States, that is:

\(a\) knowingly and willfully to reset and alter, and cause to be reset
and altered, the odometers of motor vehicles, intending to change the
mileage registered by the odometers, in violation of Title 49, United
States Code, Sections 32703(2) and 32709(b);

\(b\) to transport and cause to be transported in interstate commerce,
with unlawful and fraudulent intent, falsely made, forged, altered, and
counterfeited securities \-- namely, motor vehicle certificates of title
\-- knowing the same to be falsely made, forged, altered, and
counterfeited, in violation of Title 18, United States Code, Section
2314; and

\(c\) knowingly and willfully to give and cause to be given, in making
the written disclosures to the buyers of used motor vehicles required by
Title 49, United States Code, Section 32705(a), and Title 49, Code of
Federal Regulations, Part 580, false statements relating to the actual
mileage of the vehicles, in violation of Title 49, United States Code,
Sections 32705(a) and 32709(b).

[PURPOSE OF THE CONSPIRACY]{.underline}

4\. It was the purpose of the conspiracy to cause both the immediate and
subsequent buyers of used motor vehicles, including ultimate consumers,
to pay more for the vehicles than they would have paid if they had known
the vehicles\' correct mileage readings.

[MANNER AND MEANS BY WHICH]{.underline}

[THE CONSPIRACY OPERATED]{.underline}

5.  It was a part of the conspiracy that defendants **JAMES JONES,
    PHILLIP JONES, and FRED FILBERT,** and their co-conspirators, would
    purchase numerous used motor vehicles (mostly late-model,
    high-mileage vehicles), cause the odometers of those vehicles to be
    rolled back to lower mileage figures, and resell the vehicles to
    purchasers in the Eastern District of Pennsylvania and elsewhere,
    representing to the purchasers that the false low-mileage readings
    were the vehicles\' correct mileage readings;

It was further part of the conspiracy that:

6\. Defendants **JAMES JONES, PHILLIP JONES, and FRED FILBERT**, and
their co-conspirators, purchased high-mileage used motor vehicles for
resale using various names, both real and fictitious, including XX & YY
Auto Sales, DEF Dealership, and VVV Sales Palace, from other automobile
dealers in Massachusetts and elsewhere.

7\. Defendants **JAMES JONES, PHILLIP JONES, and FRED FILBERT**, and
their co-conspirators, paid for the vehicles using funds drawn from
accounts under their control in the names of XX & YY Auto Sales, ABC
Automotive, DEF Dealership, and XYZ Express.

8\. After purchasing those vehicles, defendants **JAMES JONES and
PHILLIP JONES,** and their co-conspirators, caused the vehicles\'
odometers to be rolled back to lower mileage figures (vehicles with such
altered odometers are called \"rolled-back vehicles\" below).

9\. Defendants **JAMES JONES and PHILLIP JONES,** and their
co-conspirators, caused the vehicles they purchased to be cleaned and
made incidental repairs in a manner designed to conceal their true
mileage.

10\. Defendants **JAMES JONES, PHILLIP JONES, and FRED FILBERT**, and
their co-conspirators, caused automobile titles and other motor vehicle
title and ownership documents to be physically altered so that the
mileage figures on those documents corresponded to the false low mileage
odometer readings on the rolled-back vehicles.

11\. Defendants **JAMES JONES, PHILLIP JONES, and FRED FILBERT**, and
their co-conspirators, applied for, and caused to be applied for, new
motor vehicle titles from the State of New Jersey, by submitting the
altered titles in order to procure new \"clean\" or \"washed\" titles
which showed false low mileages for the vehicles. The clean titles were
applied for and issued in the name of VVV Sales Sales, a dealership
controlled by defendant **FRED FILBERT**. Defendants **JAMES JONES,
PHILLIP JONES, and FRED FILBERT**, and their co-conspirators, used these
falsely made titles to hide the true chain of ownership and high mileage
of the rolled-back vehicles from subsequent purchasers.

12\. Defendants **JAMES JONES, PHILLIP JONES, and FRED FILBERT**, and
their co-conspirators, caused falsely made, forged, altered and
counterfeited titles and vehicle reassignment documents to be
transported in interstate commerce to and within the Eastern District of
Pennsylvania and elsewhere, for use in sales of those motor vehicles.

13\. Defendants **JAMES JONES and PHILLIP JONES,** and their
co-conspirators, transferred, and caused to be transferred, the falsely
made titles to the used motor vehicles to businesses under their
control. The businesses used in this way included ABC Automotive and DEF
Dealership, among others.

14\. Defendants **JAMES JONES and PHILLIP JONES**, and their
co-conspirators, sold, and caused to be sold, the rolled-back vehicles
to subsequent purchasers at a wholesale auto auction in the Eastern
District of Pennsylvania, and elsewhere, using the business names ABC
Automotive and DEF Dealership, among others.

15\. In connection with the sale of the rolled-back vehicles, defendants
**JAMES JONES and PHILLIP JONES,** and their co-conspirators, provided
false low mileage odometer disclosure statements to subsequent
purchasers.

16\. The defendants\' actions and misrepresentations led the defendants
to receive higher prices for the vehicles sold than they would have
received if the vehicles had correct mileage readings, and that buyers
of the vehicles, including ultimate consumers, paid more for the
vehicles than they would have paid if they had known the vehicles\' true
mileage.

[OVERT ACTS]{.underline}

17\. In order to effect and accomplish the objects and purposes of the
conspiracy, the defendants and co-conspirators did commit numerous overt
acts, in the Eastern District of Pennsylvania and elsewhere, among which
were the following:

\(a\) On or about January 13, 1997, defendant **PHILLIP JONES** applied
for a used car dealership renewal license from the New York Department
of Motor Vehicles for the dealership named DEF Dealership, and listed
himself as the owner of the business.

\(b\) On or about June 6, 1997, defendant **PHILLIP JONES** authorized a
person known to the grand jury to conduct transactions on behalf of DEF
Dealership at an automobile auction in Manheim, Pennsylvania.

\(c\) On or about August 8, 1997, a person known to grand jury, acting
with assistance from defendant **JAMES JONES**, applied for a used car
dealership license from the New York Department of Motor Vehicles under
the name ABC Automotive, and listed himself as the owner of the
business.

\(d\) On or about August 8, 1997, a person known to grand jury, acting
with assistance from defendant **JAMES JONES**, opened business checking
account number xxxxxxxxxxxx under the name of ABC Automotive at the
xxxxxxxxxx National Bank, in Yonkers, New York, and listed himself as
the sole signer on the account.

\(e\) On or about December 31, 1997, a person known to grand jury,
acting with assistance from defendant **JAMES JONES**, registered at an
automobile auction in Manheim, Pennsylvania, under the name of ABC
Automotive, and listed himself as the owner of the business.

\(f\) On or about March 13, 1998, defendant **FRED FILBERT** applied for
a used car dealership renewal license from the New Jersey Department of
Motor Vehicles under the name VVV Sales Sales, and listed himself as the
president of the company.

**[Vehicle Number 1]{.underline}**

\(g\) On or about March 14, 1998, defendant **JAMES JONES** purchased
Vehicle Number 1 with 103,600 miles on the odometer from a wholesale
automobile dealership in Massachusetts.

(h)On or about April 2, 1998, defendant **FRED FILBERT,** using the name
VVV Sales Sales, submitted to the New Jersey Department of Motor
Vehicles an altered title for Vehicle Number 1, along with an
application for a new title, falsely representing that the mileage on
Vehicle Number 1 was 38,681 miles.

\(i\) On or about April 3, 1998, in connection with the sale of Vehicle
Number 1, defendant **JAMES JONES** caused an odometer statement to be
issued falsely certifying that Vehicle Number 1 had only 38,821 miles.

**[Vehicle Number 4]{.underline}**

\(j\) On or about June 2, 1998, defendant **JAMES JONES** reviewed
vehicle history records and odometer readings for Vehicle Number 4,
through a commercial database of motor vehicle records.

\(k\) On or about July 11, 1998, defendant **PHILLIP JONES** purchased
Vehicle Number 4 with 278,948 miles on the odometer from a wholesale
automobile dealership in Massachusetts.

\(l\) On or about July 14, 1998, defendant **FRED FILBERT**, using the
name VVV Sales Sales, submitted to the New Jersey Department of Motor
Vehicles an altered title for Vehicle Number 4, along with an
application for a new title, falsely representing that the mileage on
Vehicle Number 4 was 49,120 miles.

\(m\) On or about July 31, 1998, in connection with the sale of Vehicle
Number 4, defendant **PHILLIP JONES** caused an odometer statement to be
issued falsely certifying that Vehicle Number 4 had only 50,641 miles.

**[Vehicle Number 10]{.underline}**

\(n\) On or about June 29, 1998, defendant **JAMES JONES** reviewed
vehicle history records and odometer readings for Vehicle Number 10,
through a commercial database of motor vehicle records.

\(o\) On or about June 29, 1998, defendant **FRED FILBERT** purchased
Vehicle Number 10 with 107,298 miles on the odometer from a wholesale
automobile dealership in Massachusetts.

\(p\) On or about July 13, 1998, defendant **FRED FILBERT**, using the
name VVV Sales Sales, submitted to the New Jersey Department of Motor
Vehicles an altered title for Vehicle Number 10, along with an
application for a new title, falsely representing that the mileage on
Vehicle Number 10 was 47,617 miles.

\(q\) On or about July 17, 1998, in connection with the sale of Vehicle
Number 10, defendant **PHILLIP JONES** caused an odometer statement to
be issued falsely certifying that Vehicle Number 10 had only 48,217
miles.

In violation of Title 18, United States Code, Section 371.

[COUNTS TWO - ELEVEN]{.underline}

THE GRAND JURY FURTHER CHARGES THAT:

1\. Paragraphs 1 and 2 of Count One are realleged and incorporated
herein by reference.

2\. On or about the dates listed below, in the Eastern District of
Pennsylvania and elsewhere,

**JAMES JONES,**

**PHILLIP JONES, and**

**FRED FILBERT,**

defendants herein, with unlawful and fraudulent intent, did transport
and cause to be transported in interstate commerce, from New Jersey to
Pennsylvania, falsely made, forged, altered, and counterfeited
securities \-- namely, certificates of title relating to the motor
vehicles listed below \-- knowing the securities to have been falsely
made, forged, altered, and counterfeited, each such instance being a
separate Count of this Indictment:

[Count]{.underline} [Vehicle No.]{.underline} [Date]{.underline}

2 1 4/2/1998

3 2 3/24/1998

4 3 5/6/1998

5 4 7/14/1998

6 5 8/24/1998

7 6 5/5/1998

8 7 4/29/1998

9 8 9/24/1998

10 9 7/2/1998

11 10 7/13/1998

All violation of Title 18, United States Code, Sections 2314 and 2.

[COUNTS TWELVE - TWENTY-ONE]{.underline}

1\. Paragraphs 1 and 2 of Count One are realleged and incorporated
herein by reference.

2\. On or about the dates listed below, in the Eastern District of
Pennsylvania,

**JAMES JONES,**

**PHILLIP JONES, and**

**FRED FILBERT,**

defendants herein, did knowingly and willfully give and cause to be
given, in making the written disclosures to the buyers of used motor
vehicles required by Title 49, United States Code, Section 32705(a), and
Title 49, Code of Federal Regulations, Part 580, false statements
relating to the cumulative mileage registered on the odometers of the
motor vehicles listed below, in that defendants **JAMES JONES, PHILLIP
JONES, and FRED FILBERT,** certified as accurate the false mileages
listed below, when in fact the odometers of the vehicles had registered
the high mileages listed below when defendants acquired the vehicles,
each such instance being a separate and additional Count of this
Indictment:

[Vehicle]{.underline} [High]{.underline} [False]{.underline}

[Count]{.underline} [Date]{.underline} [No.]{.underline}
[Mileage]{.underline} [Mileage]{.underline}

12 4/3/1998 1 103,600 38,821

13 4/3/1998 2 118,129 38,678

14 5/22/1998 3 67,831 24,180

15 7/31/1998 4 278,948 50,641

16 9/11/1998 5 79,900 33,058

17 5/8/1998 6 236,168 24,412

18 5/8/1998 7 80,145 20,569

19 9/18/1998 8 138,745 36,801

20 7/17/1998 9 77,203 28,810

21 7/17/1998 10 107,298 48,217

In violation of Title 49, United States Code, Sections 32705(a) and
32709(b), and Title 18, United States Code, Section 2.

A TRUE BILL:

Foreperson

xxxxxxxxxxxxxx

United States Attorney