Judge warns ‘theft etch’ trial may be lengthy one
DOWNTOWN LA — The case against six former Honda of Santa Monica employees who allegedly scammed hundreds of thousands of dollars from customers will be heard in court in November, after all defendants pleaded not guilty to charges on Monday.
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 their consent. 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 worth 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 Uersunthorn-wattana, Yaser Alkasem and Thomas Holterhoff all face felony counts related to the overcharging of customers, according to the Los Angeles District Attorney’s Office.
Each of the defendants have been released by the court on their own recognizance. They are scheduled to take part in a two-day preliminary hearing, beginning Nov. 9, during which time a judge will decide if the evidence is adequate to go to trial.
On Monday, the six defendants appeared in court with their six attorneys representing them. When the clerk announced the case, the defendants and their counsel stood, forming a long wall of dark business suits as they faced Superior Court Judge David S.
“This is going to be a long trial, does everybody agree to that?” Wesley asked the attorneys.
“Yes, your honor,” they said. Wesley then informed the defendants they have a right to a speedy trial and asked them if they were willing to move forward toward a trial.
Each of the defendants and their attorneys replied in the affirmative as the judge read out their names.
Alkasem, who had been absent from earlier proceedings, attended Monday’s arraignment and joined in the not guilty plea.
Alkasem discovered an arrest warrant had been issued in his name while trying to apply to work at an out-of-state car dealership. The general manager at the dealership refused to hire Alkasem and referred him to a recent Daily Press news article describing the case.
Alkasem, carrying the news articles to court on Monday, contacted the DA’s Office and turned himself in.
“It’s all over the place,” Alkasem said. “I couldn’t get a job anywhere.”
Fred Friedman, an attorney representing Hussain, is in the process of filing a demurrer, a move that would request the court to throw out the charges against his client.
Friedman, present on Monday, would-n’t comment why he felt the case may deserve to be thrown out of court.
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 November 1, 2005. Read the original PDF.