Chief Judge George L. Russell III sentenced Kamal Khalid, 44, of Pasadena, Maryland, to three years in federal prison and his brother, Fnu Shahrukh, 31, of Severna Park, to 18 months for their roles in an odometer rollback fraud. Both were ordered to pay approximately $1.2 million in restitution. Prosecutors claim the brothers tampered with odometers to reduce vehicle mileage by an average of 124,000 miles, misleading consumers into overpaying for cars that were far beyond their estimated lifespans.
According to a news release issued on Friday, September 26: “Chief Judge George L. Russell, III, sentenced Kamal Khalid, 44, of Pasadena, Maryland, to 36 months in federal prison, followed by three years of supervised release, after pleading guilty to conspiracy and securities fraud stemming from his role in an odometer rollback scheme.” Judge Russell already sentenced Khalid’s younger brother and co-conspirator, Fnu Shahrukh, 31, of Severna Park, Maryland, to 18 months in prison for his involvement in the scam. Judge Russell also sentenced both offenders to pay nearly $1.2 million in reparation to their victims.
The sentencing was announced by Kelly O. Hayes, United States Attorney for the District of Maryland, and Administrator Jonathan Morrison of the National Highway Traffic Safety Administration.
“Khalid and his brother preyed on unsuspecting people simply looking to buy a reliable used car. But instead, these victims were deceived into purchasing vehicles that were well past their prime, so now the perpetrators must face the consequence of their criminal actions,” Hayes said. “We, along with our law-enforcement partners, are committed to protecting consumers from those who target others to deceive them out of their hard-earned money.”
“Odometer fraud is a serious crime that that not only costs consumers billions of dollars every year, but also makes our roads more dangerous. In this case, the co-conspirators lowered the average vehicle’s mileage by 124,000, resulting in consumers grossly overpaying for used vehicles near or past their expected lifespans,” NHTSA Administrator Jonathan Morrison said. “Buyers were purchasing vehicles without knowing that critical components like brakes, belts, and fluids were long past their service dates. Used car buyers deserve to know the true history of their vehicles before purchase, and we encourage everyone to learn how to identify odometer fraud and protect themselves before signing on the dotted line.”
On April 7, 2025, Shahrukh pleaded guilty to one count of conspiracy to conduct securities fraud. Then, on May 28, Khalid pleaded guilty to one count of conspiracy to conduct securities fraud and another of securities fraud. As part of their plea deals, Shahrukh and Khalid admitted that between 2016 and 2019, they ran a conspiracy to sell used automobiles to unsuspecting customers with fake, low-mileage readings on the odometers and titles.
The defendants also admitted that they bought high-mileage vehicles at auto auctions. They then tampered with the vehicles’ odometers to show fake, lower mileage readings and obtained motor vehicle titles that reflected those fraudulent, lower mileages. Shahrukh and Khalid then sold the automobiles through auto auctions and directly to buyers, using bogus title papers and falsified odometer readings.
On average, the co-conspirators reduced the vehicles’ mileage by 124,000 miles. The co-conspirators misled buyers into believing the automobiles had reduced mileage, allowing them to sell them at inflated rates. The plan made consumers pay more for cars than if they knew their true mileage.
U.S. Attorney Hayes praised NHTSA for its efforts in investigating this matter, as well as the Maryland Department of Transportation’s Department of Motor Vehicles Administration for its help. Ms. Hayes also thanked Assistant U.S. Attorney Matthew Phelps, District of Maryland; Senior Litigation Counsel David Sullivan; and Trial Attorney Manu J. Sebastian, Justice Department, Consumer Protection Branch, for prosecuting the case.
Individuals with knowledge about odometer manipulation can contact NHTSA’s Vehicle Safety Hotline at 888-327-4236. The National Highway Traffic Safety Administration’s website contains additional information about odometer fraud, including prevention methods.
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