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FBI breaks up $25 million 'car cloning' ring

FBI breaks up $25 million 'car cloning' ring Rich Phillips CNN Senior Producer TAMPA, Florida (CNN) -- There's probably no way to describe the feeling. One moment, Guiseppe "Joe" Pirrone

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Old 03-24-2009, 04:46 PM   #1 (permalink)
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Default FBI breaks up $25 million 'car cloning' ring


FBI breaks up $25 million 'car cloning' ring


Quote:
Rich Phillips
CNN Senior Producer


TAMPA, Florida (CNN) -- There's probably no way to describe the feeling.

One moment, Guiseppe "Joe" Pirrone was on a long weekend at the beach.

The next moment, he found out the pickup that he bought a year ago is stolen,
and he is still on the hook for the $27,000 loan.



Stories like Pirrone's are scattered across the country, and Tuesday the FBI
announced that it has broken up one of the largest auto theft cases in the U.S.

Capping "Operation Dual Identity," arrest warrants for 17 people were executed in
Tampa and Miami, Florida; Chicago, Illinois; and in Mexico City and Guadalajara, Mexico.
The suspects were accused of "cloning" vehicles, which is making stolen cars look like
legal ones.

The FBI says that the ring was operating in the U.S. for more than 20 years. More than
1,000 vehicles were stolen in Florida, with more than $25 million in losses to consumers
and banks.

"Individuals have been victimized at every level, from the average Joe, to the banks,
to big companies," said Dave Couvertier, of the FBI's Tampa field office.

Car theft rings clone vehicles by taking license plates, vehicle identification numbers (VIN),
and other tags and stickers from a legal car and put them on a stolen vehicle of similar
make and model.

"This does not just affect big business. Anyone could become an unwitting victim of this
particular scam. It could happen to anyone," said Couvertier.

Pirrone knows how it was done because it happened to him.

Last year, he bought a used 2005 F350 Super Duty turbo diesel pickup to use for his
landscape business in Fort Myers, Florida. He bought it off a small used car lot and took
out a $27,000 loan from a credit union.

"I had it for about nine months. It was a great truck," he told CNN.

In the fall, Pirrone decided to drive across the state to spend a long weekend in Fort
Lauderdale. He was lying on the beach when his father called him to tell him that a
detective from the Lee County Sheriff's Office was at his house with a tow truck. Pirrone
got back in his car and drove back home immediately.

"I was confused, honestly," he said. "I had to ask the detective for credentials. I didn't
believe what was going on."

Pirrone said the detective explained to him that he was the victim of a scam, that he
was sold stolen goods.

Left without a truck, Pirrone called the Suncoast Schools Federal Credit Union. He found out
that his $536 a month payment would live on after his truck was long gone.
Pirrone said he was able to get a 30-day payment exemption, but was told that he had a
signed agreement with the bank, and he was still obligated to pay the loan in full.

"I am making payments on a piece of property that I don't have," Pirrone said. "They can't
even repossess it. The bank doesn't have any help to offer me."

The bank is a victim in the car cloning scam as well. Lisa Brock, a spokeswoman for
Suncoast Schools Federal Credit Union, told CNN that the company never discusses
private information about any of its members.

"It is a police matter, and it's nothing we can make any substantial comment on," she said.

Pirrone has hired an attorney, and he is considering filing a lawsuit against the dealership
to get the bank's money back. Pirrone said he was advised by his lawyer not to name the
used car lot.

Law enforcement hopes that this is the beginning of the end of the "car cloning" scam.
The National Motor Vehicle Information system (NMVTIS) database was implemented in
January. It allows state DMVs to share title and registration information.

Cloned vehicles were moved and sold to buyers in 20 states and several countries,
often for less than market value, the FBI said.

Many of the vehicles were exchanged for drugs, according to the bureau.

The FBI says that people need to be careful when buying a car independently.

"Folks should be educated enough so that they don't buy a car from a stranger, on the street,
or in a back alley somewhere," said the FBI's Dave Couvertier. "And if you're getting it for too
good a deal, it should be raising flags."

Like so many others, Pirrone is feeling the economic squeeze. Without a truck, he had to
sell his landscaping business, which he had
as a side business. He is still working his other job as a restaurant manager.

"It's not a good time for this to happen. I've had hours cut back at work, I'm not making what
I used to make."

"I don't know what's real anymore," he said.
FBI breaks up $25 million 'car cloning' ring - CNN.com

This story is pathetic and wrong.
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Old 03-30-2009, 10:32 PM   #2 (permalink)
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Haha, only in the good ol' USA!
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Old 03-30-2009, 10:39 PM   #3 (permalink)
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Last car I bought was from a cop in my wifes department!
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Old 03-30-2009, 10:41 PM   #4 (permalink)
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Woah, dad your wife is in the law enforcement agency?!
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Old 03-31-2009, 01:16 PM   #5 (permalink)
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Quote:
Originally Posted by CrownR426 View Post
Woah, dad your wife is in the law enforcement agency?!
Senior dispatcher.
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Old 04-02-2009, 03:50 AM   #6 (permalink)
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Oh wow, that's awesome.
I'm looking into the law enforcement side after college!
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Old 04-02-2009, 04:46 AM   #7 (permalink)
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Last car I bought, the guy had jerry-rigged my car like crazy. Bought the car for low and spent a couple hundred dollars and a couple weeks and the car was back to normal. I could have flipped the car easily, but I like it too much to get rid of it.

People REALLY need to know what they getting themselves into when they buy a used car. And ALWAYS do a vin check to make sure you're buying what you're buying.
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