Alleged scammers are down with demurrers
The five former Honda of Santa Monica employees who allegedly scammed hundreds of thousands of dollars from customers are set to enter a plea on Halloween, that is, unless their attorneys manage to have the case thrown out of court.
The alleged scam, which occurred from 2000 to 2002, involved the car dealership’s sales representatives tacking on charges of “theft etch” to customers’ contracts without them knowing it. Theft etch marks a vehicle’s parts with traceable numbers in the event of a theft.
Los Angeles Deputy District Attorney Dana Aratani, who works in the consumer protection division, said more than $500,000 of theft etch had been sold at Honda of Santa Monica, which would show up on the sale contract as a VT registration charge.
Ali Asghar Hussain, Hamid Reza Khaki, Yaprem Zohrab Yaralian, Ahtamet Uersunthornwattana, Yaser Alkasem and Thomas Holterhoff all face felony counts related to the overcharging of customers, according to the Los Angeles District Attorney’s Office, which filed the felony complaint on Friday. Holterhoff is being charged, but an arrest warrant has not been issued for him.
Superior Court Commissioner James Bianco, who met with attorneys on Monday at the Clara Shortridge Foltz Criminal Justice Center, agreed to postpone the arraignment until Oct. 31 so the defendants’ attorneys can organize their case.
On Monday, Hussain, Khaki, Uersunthornwattana and Holsteroff appeared in court. Yaralian is expected to appear in court later this week and also take part in the Oct. 31 arraignment, Aratani said.
Alkasem didn’t appear in court on Monday as requested by a contact letter sent to him last week, making him the only defendant still unaccounted for, Aratani said. An arrest warrant has been issued for Alkasem and police are investigating his whereabouts.
Fred Friedman, an attorney representing Hussain, told the DA’s office he may be seeking to file a demurrer, a move that would request the court to throw out the charges against his client.
Friedman wouldn’t comment on the case.
Gary Lincenberg, an attorney representing Khaki and Uersunthornwattana, said Monday that he may also seek to file a demurrer.
John Passanante, an attorney representing Holterhoff, said the Oct. 31 arraignment will allow him to become more familiar with the case. He said he also may consider filing a demurrer, but indicated such motions rarely prove successful.
The DA’s office launched an investigation into the dealership, owned by Sonic Automotive, in July 2002, after an employee tipped investigators off to the alleged scam. The dealership was raided by investigators, including FBI agents, who seized boxes of files from the finance and sales departments on Sept. 25, 2002.
Ever since, investigators and prosecutors have been sifting through files, computer records and other evidence to build their case.
The informant, James Alexandre, who worked as general manager at Honda of Santa Monica until April of 2002, wrote a letter to the DA’s office detailing the allegations, which was received July 9, 2002. The next day, the investigation was launched.
Overcharges and fake charges for Low-Jack systems, and what was called a “California tire fee/doc fee,” and “Touch of Class,” “tint,” and wheel locks also were part of the alleged scam, according to the complaint.
The 25-page complaint details 114 overt acts that the defendants allegedly took part in. There also are 24 additional counts that charge the defendants with grand theft of personal property exceeding $400.
Hussain, 37, who was director of finance at the dealership from December of 2000 to June 2002, faces 25 counts related to conspiracy to defraud another of property.
Khaki, 38, who was finance manager from December 2000 to July 2002, faces nine counts related to conspiracy to defraud another of property.
Uersunthornwattana, 44, who was finance manager from January 2001 to August 2001, faces seven counts related to conspiracy to defraud another of property.
Yaralian, 39, named as a coconspirator in the complaint, faces five counts related to conspiracy to defraud another of property.
Alkasem, 43, also named as a coconspirator, faces six counts related to conspiracy to defraud another of property.
Holterhoff, 63, another coconspirator, faces two counts related to conspiracy to defraud another of property.
Originally published in the Santa Monica Daily Press print edition on October 4, 2005. Read the original PDF.