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US Alfa Importers Arrested?

20K views 64 replies 26 participants last post by  Alfa Romeo 
For everyone's reference:

Metro car dealers charged with bad imports
By Craig Boerner, cboerner@nashvillecitypaper.com
July 11, 2003

A father and son who own and operate a local car dealership were arrested Thursday by agents from the Bureau of Immigration and Customs Enforcement (ICE) on federal charges of illegally importing Italian-made Alfa Romeo sports cars.

The cars, which did not meet federal safety and air quality standards, have not been built for the United States market since 1995.

Carlo Giordano, 66, and his son, Alessandro Giordano, 25, own and operate Autodelta USA, Inc., based in Nashville but would travel to Europe to purchase the cars and then make false statements that the vehicles were legal in the United States, according to the indictment.

Autodelta illegally imported over 20 Alfa Romeo automobiles into the United States, according to the ICE.

The Giordanos were indicted July 2 in Santa Ana, Cal., accused of seven counts of wire fraud and three counts of making false statements in documents required by the Clean Air Act.

It is the first time in California that federal charges have been brought against defendants accused of illegally importing foreign cars.

The Giordanos allegedly covered or replaced Alfa Romeo vehicle identification numbers, insignias and other markings with Autodelta versions.

The Giordanos made their initial court appearance Thursday in Nashville and the Justice Department is seeking their removal to California to face charges in the indictment.
 
Also for reference:
http://www.usdoj.gov/usao/cac/pr2003/102.html

Thom Mrozek, Public Affairs Officer
(213) 894-6947
thom.mrozek@usdoj.gov

July 10, 2003

TENNESSEE COMPANY, TWO NASHVILLE RESIDENTS

INDICTED IN CALIFORNIA FOR VIOLATING CLEAN AIR ACT

BY ILLEGALLY IMPORTING ITALIAN SPORTS CARS



A father and son from Nashville were arrested this morning on federal charges of illegally importing Italian-made Alfa Romeo sports cars that did not meet federal safety and air quality standards.

The two men were arrested without incident after being indicted last week on charges of defrauding the government by, among other things, making false statements that the vehicles were legal in the United States. It is the first time in California that federal charges have been brought against defendants accused of illegally importing foreign cars.

On July 2, a federal grand jury in Santa Ana indicted three defendants:

H Autodelta USA, Inc., which is based in Nashville;

H Carlo Giordano, 66, the owner and president of Autodelta; and his son,

H Alessandro Giordano, 25, the manager of operations at Autodelta.

The indictment alleges a conspiracy to defraud the United States, specifically the Environmental Protection Agency, the United States Bureau of Customs and Border Protection (CBP) and the National Highway Traffic Safety Administration (NHTSA). The indictment also accuses the three defendants of seven counts of wire fraud and three counts of making false statements in documents required by the Clean Air Act.

According to the indictment, the Giordanos would travel to Europe where they would purchase Alfa Romeos from European dealers. Alfa Romeos have not been built for the United States market since 1995, and the cars lack the safety and emission control equipment needed to operate them in the United States.

The Giordanos illegally imported the vehicles into the United States by making a variety of false statements and false representations on forms they were required to submit to the EPA, CBP, and the NHTSA. Those false statements included representations that the cars were for temporary personal use, were not for resale, and each were worth approximately $18,750. The Giordanos then sold or offered for sale some of the same cars within a month of importation for more than $41,000.

The Giordanos allegedly operated their fraud by covering over or replacing the Alfa Romeo vehicle identification numbers, insignias and other markings with Autodelta versions. They then attempted to selling the cars as vehicles safe to operate on domestic roads and as vehicles with appropriate emissions controls, which they were not.

Three of what are believed to be about two dozen vehicles illegally imported into the United States were either sold or offered for sale in Orange County, California.

The Giordanos are expected to make an initial court appearance today in United States District court in Nashville. The Justice Department will seek their removal to the Central District of California to face the charges in the indictment.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.

If convicted, the Giordanos each face a maximum possible penalty of five years in prison for each of the 11 counts in the indictment. Autodelta could be sentenced to pay fines totaling more than $5 million.

This case was investigated jointly by special agents from the Pasadena office of EPA’s Criminal Investigations Division and the Orange County office of the Bureau of Customs and Immigration Enforcement.

Release No. 02-102
 
Well Greg, to be honest here, I'm more interested in the part of the indictment regarding the wire fraud...and the previous info located on the Alfa Digest regarding defrauding dealerships that they were supposed to be delivering these cars to. From what I can tell, this isn't a case of some kind soul trying to import a car to enjoy, they lied and broke the law, for a profit...sorry, but to me that is wrong. Not only that, it leaves a bad taste in the public's mouth with regards to Alfa...I'm sure the company itself (Alfa...or Fiat..whatever) was just thrilled to be somehow involved in all this.

I too am interested in hearing the status of the indictment.

Ted
 
Sorry, but I am afraid you're missing the point. Comparing this to a DUI/DWI situation just doesn't work. The article and press release don't go into the actual charges, but I'm guessing they are 18 USC 1343 Fraud by wire, radio, or television (read the law here ) and I'd be willing to bet that 18 USC 1956 Laundering of monetary instruments was thrown in as well (read it here ) ...how this could be seen as a couple guys just trying to do right by Alfisti everywhere, I don't know. And for the record, I never said I'd buy a new Alfa at any cost...and actually, I don't remember anyone else saying that either. Trying to illegally import Alfa's into the US is a sure way of never seeing them return here...also, I seriously doubt that DOT and the EPA want to crush our existing cars..but its a nice "Rove'ian"-tactic to instill fear into folks...

Ted
 
Kipp said:
They are only grey market cars; needing to be brought up to smog and safety requierments for the US. Black market would be if the cars were stolen.
If the goverment has taken the cars, than they have not been able to deliver. Another reason for dealers to not be happy.
black market
(Economics, Law, Business)
n.
1. The illegal business of buying or selling goods or currency in violation of restrictions such as price controls or rationing.
2. A place where these illegal operations are carried on.

Black Market
http://canadianeconomy.gc.ca/english/economy/black_market.html

Goods and services that are controlled or forbidden by governments but continue to be bought and sold privately are said to be traded on the black market. Illegal drugs, pornography and some forms of gambling are classic examples of goods and services that trade on the black market. Black markets tend to thrive in highly controlled economies where governments ration many products such as food, gas and luxury goods.

Goods in the black market do not trade in open view of the authorities. When products are banned, they can be smuggled or produced illegally, yielding profits based on demand. Legal goods and services are sometimes traded on the black market to avoid taxes.
From our friends up north....sounds fitting to me.

http://www.wordiq.com/definition/Black_market

I would think they would be grey market cars if they were legal to own here...an obtained and imported legally...all of which they were not.

Ted
 
Greg Gordon said:
Ted, Roev'ian? I don't even know what that means, I just went to a State College, not one of those places that makes you smart. Anyway the EPA and DOT sure do want to crush our older Alfas, they want to so badly they will pay you to let them do it. Now they won't take and crush your nice 1970 GTV but they have crushed other cars that could have been restored or used for parts to keep existing older models on the road.
Nice try Greg, but I went to State College as well, and I know the difference between right and wrong, breaking the law and doing things within it....saying the EPA wants very badly to crush your Alfa is more than a bit misguided.

Ted
 
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