Brothers Sentenced to Federal Prison for Elaborate Used Car Odometer Scheme

According to the U.S. Attorney’s Office for the District of Maryland, two brothers have been sentenced to federal prison for their involvement in a scheme to defraud consumers by rolling back odometers on used vehicles. Kamal Khalid, 44, of Pasadena, Maryland, received a 36-month sentence and three years of supervised release, while his younger brother, Fnu Shahrukh, 31, of Severna Park, Maryland, was sentenced to 18 months incarceration. Both were also ordered to pay approximately $1.2 million in restitution to their victims.

The scheme, which operated between 2016 and 2019, involved purchasing high-mileage vehicles from auto auctions and then altering their odometers to display significantly lower mileage. The defendants then obtained fraudulent titles reflecting these false readings and used this documentation to sell the vehicles at inflated prices, both through auctions and directly to unsuspecting buyers. On average, the vehicles’ mileages were artificially reduced by 124,000 miles. This deception led consumers to believe they were purchasing more reliable vehicles than they actually were, resulting in significant overpayments.

The sentencing was announced by U.S. Attorney Kelly O. Hayes for the District of Maryland, in conjunction with Administrator Jonathan Morrison of the National Highway Traffic Safety Administration (NHTSA). This case highlights the commitment of law enforcement to protect consumers from deceptive practices in the used car market. The reduction in reported mileage meant that buyers were unaware of the true condition of critical vehicle components, such as brakes, belts, and fluids, which were likely near or past their expected service life.

Khalid pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud on May 28, 2025. Shahrukh had previously pleaded guilty to one count of conspiracy to commit securities fraud on April 7, 2025.

The National Highway Traffic Safety Administration emphasizes that odometer fraud is a serious crime with far-reaching consequences, costing consumers billions annually and potentially compromising road safety due to the sale of vehicles in poor mechanical condition. The agency encourages consumers to educate themselves on how to identify odometer fraud and take steps to protect themselves before purchasing a used vehicle.

Individuals who have information regarding odometer tampering are encouraged to contact NHTSA’s Vehicle Safety Hotline at 888-327-4236. Additional resources and prevention tips for odometer fraud are available on the NHTSA website.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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