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Letter to the Editor

California Auto Auction Dealers Arrested

SACRAMENTO, Calif. -- Climaxing a three year investigation, a multi-agency task force consisting of investigators from the California Department of Justice, Department of Motor Vehicles, and the State Board of Equalization has arrested Bijan (Brian) Sharifi and his cousin Shahram (Sean) Sharifi on fraud charges stemming from public auto auctions. In a 10 count felony complaint filed by the State Attorney General's office, the Sharifis were charged with grand theft, tax evasion and money laundering.

Officials said the Sharifis were "subterfuge" owners of a corporate entity that held public auto auctions throughout California. In 1997, the Department of Motor Vehicles received hundreds of consumer complaints alleging that titles had not been transferred and vehicle registration fees had not been paid on cars purchased from the Sharifis at the public auctions. A joint investigation involving the Department of Motor Vehicles and the State Board of Equalization revealed that the Sharifis had collected vehicle registration fees and sales tax on all vehicles sold at the public auctions but had failed to remit a substantial amount of those fees and taxes to the appropriate agencies. The losses to consumers as a result of this alleged fraud were over $1,150,000. Loss to the state as a result of the alleged tax evasion exceeded $2,000,000.

In a recent investigation conducted by the Department of Justice, it was determined that the Sharifis also defrauded the public by selling hundreds of used cars on which they did not hold title. According to a wholesale auto dealer, the Sharifis took possession of hundreds of vehicles at wholesale auctions and had them shipped to the public auction sites in California where they were sold to the public. Although the Sharifis had promised to pay for these cars before they were sold to the public, the wholesale dealers never received payment for the cars. The loss to the wholesale dealers is alleged to be nearly $4,000,000. Also as a result of this alleged fraud, hundreds of consumers were left without title to the cars they had purchased at the Sharifis' public auctions because the wholesale dealers would not release title to the cars until they were paid.

The Sharifis public auto auctions operated under the name of Public Auction Agency with the following locations: San Jose, San Mateo, Los Angeles, Upland, Van Nuys, and Carson.

The Sharifis were arraigned on the felony charges in San Bernardino County Superior Court this afternoon (Tuesday) in Rancho Cucamonga. They entered pleas of "not guilty." Bail was continued at $4 million each, and the next court appearance was set for March 19th. The pair was taken into custody at Orange County Jail on Thursday, March 8, 2001.

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. The department is under the Business, Transportation and Housing Agency.

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