Sales Representatives Indicted on Fraud Charges

California Department of Motor Vehicles
Media Relations Office
2415 First Avenue, MS F-122, Sacramento, CA 95818
Contact: DMV Media Relations

www.dmv.ca.gov
www.youtube.com/CaliforniaDMV

April 8, 2008

Sacramento—Felony criminal charges were disclosed Wednesday against Robert Gauntt, Rolando Dulay, and Carlos Albornoz, former sales representatives of Power Toyota of Cerritos, as indictments were unsealed in Los Angeles Superior Court. Bail has been set at $80,000 for Gauntt and Albornoz; $20,000 for Dulay.

On Feb. 21, 2008, the defendants were indicted by the Los Angeles County Grand Jury, and appeared in Los Angeles Superior Court on March 26. The indictment remained sealed until Wednesday’s arraignment.

Investigators from the California Department of Motor Vehicles (DMV) and the Los Angeles County District Attorney’s Office arrested Gauntt of Ontario and Dulay of Carson without incident on March 5. Albornoz was arrested on March 10. Albornoz and Gauntt were charged with four counts of grand theft of personal property. Dulay is charged with a single count of grand theft of personal property. The three men pleaded not guilty.

Background

In 2005, the DMV launched an investigation after receiving numerous complaints of alleged deceptive sales practices. During the course of the investigation, DMV investigators were led to believe that sales representatives at the dealership had been deceiving customers into leasing their vehicles. The practice is known as “lease packing,” which is the artificial inflation of the cost of the lease to the customer without their knowledge.

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DMV’s Investigations Division enhances consumer protection through active fraud/counterfeit detection, investigation, and enforcement services. The DMV is a department under the Business, Transportation and Housing Agency, which is under the direction of Secretary Dale E. Bonner. The DMV licenses drivers; maintains driving records; registers and tracks official ownership of vehicles and vessels; investigates auto and identity-related fraud; and licenses car dealers, driving schools, and traffic violator schools.



Don’t Stand In Line, Go Online!Doing business with the DMV has never been easier. The DMV offers an array of services to customers 24 hours a day, 7 days a week through its Web site (www.dmv.ca.gov), including online appointments for written and drive tests; vehicle registration and driver license renewals, selection of personalized license plates, changes of address and payment of fees via secure debit transactions.

DMV is a department under the Business, Transportation and Housing Agency, which is under the direction of Secretary Dale E. Bonner. The DMV licenses drivers; maintains driving records; registers and tracks official ownership of vehicles and vessels; investigates auto and identity-related fraud; and licenses car dealers, driving schools, and traffic violator schools.

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