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Karoush Jamshidi (Sept. 25, 2012)
Updated: Tuesday, 25 Sep 2012, 12:04 PM EDT
Published : Monday, 24 Sep 2012, 4:58 PM EDT
KALAMAZOO, Mich. (WOOD) - The Southwest Commercial Auto Recovery (SCAR) Unit has arrested a car dealer accused of illegally selling scrapped vehicles to more than 20 unsuspecting customers.
Karoush "James" Jamshidi, 58, who ran Import Cars on West KL Avenue in Kalamazoo, was arraigned Monday on five counts of common law fraud -- each a 10-year felony.
A three-month investigation by SCAR found Jamshidi sold vehicles that had been branded as scrap for road use without customers' knowledge, which is illegal in the state of Michigan.
Authorities say there were 21 victims over three years.
Jamshidi's car dealership would purchase salvaged or junked vehicles at auctions, authorities said.
Those vehicles are supposed to be used only for parts, but the dealership would make repairs to the vehicles and then sell them. That poses a safety risk because some of the vehicles had serious problems.
Police say Jamshidi manipulated the junk titles through insurance companies so the Secretary of States office wouldn't catch on. The Secretary of State is also investigating several other complaints against the company.
24 Hour News 8 went to the dealership went inside looking for answers, but was quickly turned away.
Jamshidi is expected to be back in court Oct. 4.
The Secretary of State and police encourage consumers to check a vehicle's CarFax or title before purchase. If a title is green, the vehicle is good to go. If orange, it is a salvage vehicle; and if red, it is a junked vehicle.
If you think you have purchased a junked car, officials from the Secretary of State encourage you to file a complaint with their office.
The multi-jurisdictional auto theft team SCAR is made up of detectives from Kalamazoo Public Safety, Kalamazoo Township Police Department and the Michigan State Police, according to a release, and serves Allegan, Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph and Van Buren counties.
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