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BROTHERS SENTENCED TO FEDERAL PRISON IN CONNECTION WITH USED CAR ODOMETER SCHEME
Baltimore, Maryland – Chief Judge George L. Russell, III, sentenced Kamal Khalid, 44, of Pasadena, Maryland, to 36 months in federal prison, followed by three years of supervised release, after he pled guilty to conspiracy and securities fraud stemming from his role in an odometer rollback scheme. Judge Russell previously sentenced Khalid’s younger brother and co-conspirator, Fnu Shahrukh, 31, of Severna Park, Maryland, to 18 months of incarceration for his role in the scheme. Additionally, Judge Russell ordered both defendants to pay approximately $1.2 million in restitution to their victims.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Administrator Jonathan Morrison, National Highway Traffic Safety Administration.
“Khalid and his brother preyed on unsuspecting people simply looking to buy a reliable used car. But instead, these victims were deceived into purchasing vehicles that were well past their prime, so now the perpetrators must face the consequence of their criminal actions,” Hayes said. “We, along with our law-enforcement partners, are committed to protecting consumers from those who target others to deceive them out of their hard-earned money.”
“Odometer fraud is a serious crime that that not only costs consumers billions of dollars every year, but also makes our roads more dangerous. In this case, the co-conspirators lowered the average vehicle’s mileage by 124,000, resulting in consumers grossly overpaying for used vehicles near or past their expected lifespans,” Morrison said. “Buyers were purchasing vehicles without knowing that critical components like brakes, belts, and fluids were long past their service dates. Used car buyers deserve to know the true history of their vehicles before purchase, and we encourage everyone to learn how to identify odometer fraud and protect themselves before signing on the dotted line.”
On April 7, 2025, Shahrukh pled guilty to one count of conspiracy to commit securities fraud. Then on May 28, Khalid pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. As part of their plea agreements, both Shahrukh and Khalid admitted that between 2016 and 2019, they engaged in a scheme to sell used vehicles with false, low-mileage readings entered on the vehicles’ odometers and titles to unwitting consumers.
The defendants also admitted that they purchased high-mileage vehicles from auto auctions. They then altered the vehicles’ odometers to reflect false, lower mileage readings, and obtained motor-vehicle titles reflecting those false, lower mileages. Shahrukh and Khalid then used the fraudulent title documentation and falsified odometer readings to sell the vehicles both through auto auctions and directly to consumers.
On average, the co-conspirators artificially lowered the vehicles’ mileages by 124,000 miles. The co-conspirators deceived purchasers into believing the vehicles had lower mileages, which enabled them to sell the vehicles at inflated prices. As a result of the scheme, consumers paid more for the vehicles than they likely would have if they knew the true high mileage.
U.S. Attorney Hayes commended NHTSA for its work in investigating this case and the Maryland Department of Transportation, Department of Motor Vehicles Administration for its assistance. Ms. Hayes also thanked Assistant U.S. Attorney Matthew Phelps, District of Maryland, and Senior Litigation Counsel David Sullivan and Trial Attorney Manu J. Sebastian, Justice Department, Consumer Protection Branch, who prosecuted the case.
Individuals with information relating to odometer tampering should call NHTSA’s Vehicle Safety Hotline at 888-327-4236. More information on odometer fraud, including prevention tips, is available on NHTSA’s website.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
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