MARYLAND (7News) — Two Maryland brothers will spend time in federal prison after admitting to an odometer rollback scheme that cheated used car buyers out of $1.2 million, according to federal prosecutors.
Kamal Khalid, 44, of Pasadena, was sentenced to three years in prison, followed by three years of supervised release.
Fnu Shahrukh, 31, of Severna Park, received an 18-month prison sentence.
Both were ordered to pay approximately $1.2 million in restitution to their victims.
🚗 How the Scheme Worked
Between 2016 and 2019, Khalid and Shahrukh purchased high-mileage vehicles from auto auctions, then manually rolled back the odometers by an average of 124,000 miles per car.
They then:
Falsified titles to reflect the lower mileage
Resold the altered vehicles at auctions and to unsuspecting consumers
Inflated prices, taking advantage of buyers who believed they were purchasing low-mileage, well-maintained vehicles
“Buyers were deceived into purchasing vehicles that were well past their prime,” said U.S. Attorney Kelly Hayes.
“This scheme left them with unreliable and potentially unsafe cars.”
🚨 Safety at Risk
Jonathan Morrison of the National Highway Traffic Safety Administration (NHTSA) emphasized that odometer fraud is not just financial — it’s dangerous.
“Odometer fraud not only costs consumers billions each year, but also makes our roads more dangerous,” Morrison said.
“These vehicles had critical components—like brakes and belts—well past their service life.”
The scheme affected hundreds of vehicles, federal prosecutors said.