A Kansas businessman who was indicted Monday on charges connected to altering vehicle odometers is the latest case of odometer fraud in the U.S., a crime that costs buyers more than $1 billion annually, according to federal authorities. Adam Newbrey, 31, of Derby, Kan., was charged with 27 counts of criminal misconduct, including odometer tampering, aggravated identity theft, and mail fraud, among other charges, USA Today reports. According to prosecutors, he allegedly purchased used vehicles in Kansas and Oklahoma, and altered the odometers in 2020 and 2021. Newbrey then used fraudulent documents to obtain vehicle titles from the Kansas Department of Revenue that reflected the falsified odometer readings, prosecutors claim. He is also accused of using the titles with the misrepresented mileage to defraud car buyers.
According to court documents, Newbrey operated three used car dealerships in Wichita: iDeal Motors, Midwest Wholesale, and Prestige Motors. In 2022, iDeal Motors was banned from selling cars in Kansas and was fined more than $159,000 in an investigation into consumer complaints about the dealership. Odometer fraud across the country is rising each year, according to data firm Carfax. The National Highway Traffic Safety Administration estimates that more than 450,000 vehicles are sold each year with false odometer readings. There is a misconception that odometer fraud has declined with digital odometers, according to Carfax research. Recent data suggess that more than 2.1 million vehicles were identified with rolled-back odometers in 2023, a 7% increase from the previous year and up 14% since 2021.
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