Automotive Finance Corporation - Title Fraud in New Jersey

New Jersey’s Governor Corzine and Attorney General Milgram reach agreement with Automotive Finance Corporation (AFC) regarding possible title fraud.

AFC titled cars in Arkansas by signing an “Affidavit of Repossession” even though cars were purchased and located in New Jersey.

“It’s probably a criminal matter” said Sandy Grossman of the New Jersey Division of Motor Vehicles. “We feel outraged, but there is nothing we can do” she says.

Apparently, New Jersey Attorney General Anne Milgram won’t take action either. Even though the possibility of counterfeiting and mail fraud exists in AFC’s re-titling, Milgram says she reached an agreement with AFC on behalf of consumers to “resolve their struggle to legally register their vehicles”.
What about AFC blowing past state and federal laws? How about:
1. Conspiracy, in violation of Title 18, U.S.C. § 317;
2. Possession of counterfeit state motor vehicle titles with intent to defraud, in violation of Title 18, U.S.C. § 513;
3. Utilizing interstate commerce to transfer false and fictitious documents with the intent to defraud, in violation of Title 18, U.S.C. § 514;
4. Utilizing interstate commerce to transport counterfeit state motor vehicle title securities of the value of $5, 000 or more, in violation of Title 18, U.S.C. § 2314;
5. Concealing the commission of a felony, in violation of Title 18, U.S.C. § 4.

Maybe Governor Jon Corzine doesn’t smell a rat, but isn’t this the Attorney General’s job? If the Attorney General would do just a cursory investigation of AFC, she might see that this is not an isolated incident.

Consumer Affairs director David Szuchman incredulously thanked AFC for its cooperation. Szuchman said he is working to identify other lenders who provided loans to consumers who purchased vehicles at the now defunct Galaxy Motors.
What other lenders? What lender would obtain titles out-of- state like AFC did? Call Bank of America and see what their counterfeiting title policy is.

Instead of state officials patting each other’s backs for a job not done, they might want to investigate how AFC did an end around of New Jersey laws.