Man indicted for ‘title washing’ scheme at Northern KY used-car dealership
A Kentucky man was federally indicted for mail fraud and aggravated identity theft after he was tied to a “title washing” scheme run from a northern Kentucky used-car dealership.
James Matthew Ryan was indicted for five counts of mail fraud and one count of aggravated identify theft last week in the Eastern District of Kentucky federal court.
Ryan was the general manager of NKY Auto Sales and sold 160 previously “junked” cars to other dealerships in Ohio through false vehicle inspections, according to his indictment.
As part of the scheme, the dealership used false inspection reports and title paperwork to move “red salvage titles” through Kentucky and Utah, so vehicles would appear as if they were eligible for resale and retitling, court documents state.
Ryan would forge the signature of a deputy inspector, according to the indictment.
NKY Auto Sales, a used-car dealer in northern Kentucky, is described as selling vehicles with junk or salvage histories and then using Kentucky, Utah, and other title processes to make them appear eligible for resale and retitling.
First, the dealership would sell a vehicle and obtain a Kentucky red salvage title. The dealership would then apply for a rebuilt title and send it through and out-of-state dealership such as GP Motor Company in Utah, the indictment states.
The resulting title would come from Ohio for the buyer. Since 2021, the dealership sold 160 cars using this method.
The indictment did not disclose how much money the dealership or Ryan made as part of the scheme.
Ryan faces 20 years in prison for the mail fraud charges and a fine of up to $250,000. For the identify theft charge, he would serve a two-year term to run consecutive with other time imposed.
