DMV and CHP Investigators Uncover Illegal Vehicle Subleasing Scam

SACRAMENTO - A joint investigation by DMV and CHP Investigators has uncovered an illegal motor vehicle subleasing operation by Independent Dream Auto (IDA), a Sacramento-based dealership. Independent Dream Auto advertised a subleasing service extensively in print and radio in Northern California.

Investigators arrested the principal operator of IDA--26-year old Stephan James Evanovich yesterday, and booked him in the Placer County Jail. Bail was set at $125,000. He was charged with eight counts of 571 PC -unlawful subleasing of a vehicle-- and four counts of embezzlement.
(504 PC)

Investigators say the subleasing service was offered to vehicle owners who had negative equity in their cars. IDA would find new purchasers for the vehicles, collect a down payment between $1,000 to $7,000, and then charge monthly payments that exceeded the original registered owner's payments. Under the agreements, IDA collected the amount of the monthly payments from the new purchasers and was supposed to either hand the money over to the lien holder (financial institution) or forward the money to the registered owners so they could make the payment themselves.

Although IDA generated official looking contracts and paperwork, no title was ever officially transferred through DMV. As is the case with many of these types of schemes, the operator of IDA stopped making payments to the lien holders or registered owners of the vehicles but continued to collect the payments from the new lessees (or "permissive users" as they are known,) which then makes the vehicles embezzled property under California law.

Further information has been developed that the operator of IDA employed "collectors" who would enforce late payment issues and/or repossess the vehicles so they could be subleased to new "permissive users" under similar terms (down payments and high monthly payments).

Investigators have so far identified eight victims, but it is anticipated that the total number of persons who might have been scammed could range into the hundreds. It is also highly probable that other illegal sub-leasing businesses will be identified statewide in the near future as victims come forward during the investigation. The DMV and CHP urge any person who thinks they might have been victimized by IDA or a similar vehicle subleasing business to call 1 800 TELL CHP or to contact their nearest DMV Investigations Office; for a complete list of DMV Investigations Offices, and a copy of a DMV complaint form (INV172A), visit the DMV web page at: www.dmv.ca.gov.

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