Licensing agent admits fraud

By Peter Lewis
Times consumer-affairs reporter

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That is, she erased from state Department of Licensing records the fact that the vehicles had been declared total losses by insurance companies and had been "branded" as rebuilt.

The fraud ran for five years until last spring and raked in more than $675,000, according to charging papers filed in Seattle federal court.

Accepting responsibility yesterday was 26-year-old Amy Haeckl, who formerly worked at a Renton licensing agency that subcontracted with the state Department of Licensing.

She admitted that she received a total of $18,000 for her part in the scam.

Tips to avoid buying wrecks • Take the vehicle to a trusted mechanic, who should be able to recognize signs that a car was rebuilt after being totaled. • Check out the car via CarFax (www.carfax.com), but know that CarFax relies on public records and not all states have "branding" statutes like Washington does to designate cars that were rebuilt after being totaled. That means that a determined crook could "wash" a title in another state and bring it to Washington to get a clean title. • If a deal seems to be too good to be true, it probably is.

The licensing agency for which Haeckl worked is no longer operating but was one of about 180 around the state where the public can obtain vehicle-licensing services.

Technically, Haeckl did not work for the state. But as an employee of the agency, she had access to state-owned computers. DOL spokesman Brad Benfield says the department knows of no other agent involved in title-washing.

Defendants would buy totaled vehicles at salvage yards, rebuild them and give Haeckl the paperwork, which was marked to show the vehicles were wrecks. She would erase this "branding," and generate clean titles for the vehicles, investigators said.

Assistant U.S. Attorney Todd Greenberg said that, for sentencing purposes, it would count against Haeckl that she abused a position of public trust.

A sealed plea agreement was filed yesterday along with the charges against Haeckl, who faces up to five years in prison and a $250,000 fine as a result of her guilty plea to conspiring to forge vehicle-registration files.

But in open court, U.S. Magistrate Judge Monica Benton mentioned elements of the deal, including the fact that in return for the possibility of a lighter sentence, Haeckl has promised to cooperate completely and truthfully in the prosecution of others.

Among them is Igor Ivanchuck, 47, of Kent, who was indicted on charges of conspiracy and seven forgery counts. His trial is set for July 19. If convicted, he faces up to five years for conspiracy and 10 years for each forgery count, plus fines.

Ivanchuck was arrested last Friday and pleaded not guilty. His attorney, Edward A. Nelson of Lakewood, Pierce County, did not return telephone calls yesterday. Ivanchuck was described in charging papers as vice president and an owner of Beltsinvest U.S.A., which did business as John's Auto at 12702 Highway 99 in Everett.

Washington State Patrol Sgt. John Anderson, a member of the Bellevue-based auto-theft unit that investigated the case, said two other men were booked into Snohomish County Jail in March 2003 in connection with the fraud. Anderson said the investigation is continuing and he was hopeful there would be additional arrests.

Snohomish County transferred the case to the U.S. Attorney's Office because of its size and complexity, Anderson said. The state has contacted owners with instructions on what to do to get their vehicles retitled, he said.

Anderson said Ivanchuck somehow managed to "compromise" Haeckl. She told investigators that she wanted to get out of the scheme and claimed that Ivanchuck "basically blackmailed her into staying in," Anderson said.

A wide cross section of vehicles received washed titles, investigators said. In some cases, the buyers were "unaware of significant safety hazards," according to the indictment.

Among the vehicles with a washed title was a 1995 BMW 740i that sold in 1998 for $34,600 after Ivanchuck represented it to a buyer as having a clean title. Selling the vehicle at that price increased Ivanchuck's profit by more than $16,000, according to the indictment.

The DOL's Benfield said that as a result of the investigation and arrests, the department took steps to minimize chances of a repeat performance.

He said the DOL clarified its expectations for its agents, asking them to take greater responsibility for monitoring their employees and reminding them that they could be held accountable for criminal actions.

Peter Lewis: 206-464-2217 or plewis@seattletimes.com

Copyright © 2004 The Seattle Times Company

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