Directors of two car dealerships to be charged over mileage tampering

Charges are expected to be brought against the directors of two car dealerships for their alleged involvement in manipulating mileage gauges on imported Japanese vehicles. 

The police Financial Crimes Investigations Department has filed charges in the court registry, and three individuals are scheduled to appear before a magistrate in the coming days, Times of Malta reported on Sunday.

The accused parties include Alexander Spiteri, the owner of Alexander Auto Sales, a business that was registered just last May, as well as Roderick and Alison Vella, who operate Rokku Auto Dealer. 

These individuals will face charges related to fraud and money laundering, in addition to conspiracy charges associated with these offenses. The prosecution is expected to request a court order to freeze their assets.

The alleged fraudulent activity began in 2019 and involved the acquisition of high-mileage vehicles in Japan at low prices. These vehicles were then imported to Malta, where their mileage gauges were tampered with to deceive potential buyers into believing they were purchasing cars with lower mileage.

 The vehicles were sold after false information was inserted into local systems, and counterfeit certificates from the Japan Export Vehicle Inspection Centre (JEVIC) were produced in Malta

JEVIC had a publicly accessible online system for logging vehicle details, including mileage, but this data was not thoroughly verified by Maltese authorities, resulting in discrepancies ranging from 30,000km to 130,000km for some of the affected cars.

The Consumer Protection Authority also conducted its own investigation into this matter.

 When the case first gained public attention, owners of vehicles with tampered mileage were encouraged to formally report the issue to the Malta Competition and Consumer Affairs Authority, which committed to investigating the claims and facilitating compensation.

In June of the previous year, a media investigation exposed the alleged manipulation of mileage gauges on cars imported from Japan. 

MaltaToday reported that as many as 300 cars may have been affected at the time. Following these revelations, the Used Vehicles Importers Association immediately suspended the operations of the two dealerships involved. 

Victims of the manipulated odometer scheme have since received partial refunds, full refunds, or had their vehicles returned to the dealers.

Both Alexander Spiteri and the Vella couple were arrested in October 2022 on suspicion of tampering with the mileage counts of imported vehicles. They were subsequently questioned and released on police bail.

Earlier this month, the three directors challenged a court order that they claim has effectively brought their businesses to a halt, with their assets frozen and their families facing financial hardship. 

Through their legal representatives, Franco Debono, Francesca Zarb, and Marion Camilleri, Spiteri and the Vellas argued that the police investigation and the broad attachment orders issued by the Criminal Court violated their fundamental rights. 

While they are considered innocent until proven guilty, the orders remain in effect, having been renewed six months after their issuance. 

As a result of these orders, both Spiteri and the Vellas contend that they are unable to continue their business operations and maintain a decent standard of living. They have submitted separate applications to the First Hall, Civil Court, seeking relief from what they perceive as a "draconian" legal measure.