Two brothers from Maryland have been sentenced to federal prison for their involvement in an odometer rollback scheme that defrauded used car buyers. Chief Judge George L. Russell, III, sentenced Kamal Khalid, 44, of Pasadena, Maryland, to 36 months in federal prison and three years of supervised release. His younger brother and co-conspirator, Fnu Shahrukh, 31, of Severna Park, Maryland, received an 18-month sentence. Both were ordered to pay about $1.2 million in restitution to victims.
The sentencing was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with Jonathan Morrison from the National Highway Traffic Safety Administration (NHTSA).
“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 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.”
According to court documents and plea agreements referenced in the announcement, between 2016 and 2019 Khalid and Shahrukh bought high-mileage cars at auto auctions and rolled back odometers before reselling them through auctions or directly to customers using fraudulent titles showing lower mileages.
On April 7, 2025 Shahrukh pleaded guilty to conspiracy to commit securities fraud; Khalid entered guilty pleas on May 28 for conspiracy as well as securities fraud.
Investigators found that on average each vehicle had its mileage reduced by approximately 124,000 miles before being sold at inflated prices under false pretenses.
The U.S. Attorney's Office credited NHTSA’s investigation as well as assistance from the Maryland Department of Transportation Motor Vehicle Administration in bringing the case forward.
Individuals with information related to odometer tampering are encouraged to contact NHTSA’s Vehicle Safety Hotline at 888-327-4236 or visit NHTSA’s website for more details about odometer fraud prevention.
Additional resources regarding consumer protection enforcement can be found at www.justice.gov/civil/consumer-protection-branch while information about reporting fraud or learning more about office priorities is available at justice.gov/usao-md and justice.gov/usao-md/community-outreach.
