DMV Arrests the Victim of Loan-Sharks for failing to pay 500% interest

The California DMV, instead of protecting its citizens, has the victim of loan-
sharks arrested. A Lancaster, CA dealer was arrested when he was unable to
continue paying the 500% usurous interest charges by unlicensed flooring lenders
AFC and DSC.

A California DMV investigator reported to the Los Angeles District Attorney that
the used car dealer failed to transfer titles for cars sold to customers. The DMV
investigator, however, failed to advise the D.A. that AFC and DSC has committed
numerous felonies in California, ruining the lives of small business owners and
costing this state millions of dollars in unpaid fees.

The DMV has been aware of the criminal activites of AFC and DSC for several years.
DMV states DSC and AFC have immunity because they do not fall under the arm of the
DMV. DMV also fails to disclose that DSC has access to DMV computers.

Extortion and blackmail are synonymous with Automotive Finance Corporation and
Dealer Services Corporation. The deep pockets of head bosses John E. Fuller and
Mike Hockett have allowed them to violate California’s Constitution prohibiting
usury along with a host of other statutes regarding racketeering laws.

AFC and DSC charged 500% interest on loans to car dealers in California. They
didn’t need to break any legs to collect; they used the DMV against their victims.
Complaints to the DMV about these unlicensed lenders have been ignored for years.
Instead, the DMV focused their muscle on the small used car dealer, ignoring the
laws and regulations violated by these two unethical Indiana corporations.

Both lenders were required by California DMV statutes to indicate their lien on
the titles as lenders, neither have complied with California law. Unless DMV gave
dealer licenses to both these companies, millions of dollars were never collected
in DMV fees.

DSC admitted counterfeiting titles; taking property they did not own; extorting a
borrower by stealing his neighbor’s property; and admitted not being licensed
while making 100,000 loans in California. This single case in Orange County (30-
2008 00083115) evidenced the following criminal facts:

Dealer Services Corporation counsel John Wick admitted that DSC “chose” not to be
legally licensed as a lender in California from 2005 until May 2009. An
unlicensed lender that willfully charges usurious interest is guilty of loan
sharking (CC §1916.12-3(b), a felony punishable by up to five years in prison and
shall be null and void as to any agreement to pay interest. (Nonwillfully charging
too much interest merely entails treble damages. CC §1916-3.12(a).)

DSC employee Troy Rogers admitted in court that he provided false evidences of
registration (VC § 4463(a)(2)) and procured and offered false instruments for
record (PC § 115); made false statements about material facts pertaining to his
knowledge that the five vehicles were licensed and titled in California.

Kathleen Doolen, a vehicle verifier hired by DSC, testified that she provided
false evidences of registration (VC § 4463(a)(2)); procured and offered false
instruments for record (PC § 115); made false statements and concealed material
facts (VC § 31); and under penalty of perjury, signed Indiana Forms 44049, falsely
claiming to be an Indiana police officer, BMV official or BMV certified dealer
signee all while being licensed by the DMV.

Both AFC and DSC made loans in California that required their licensure. The
Legislature, in voiding contracts made in violation of the Finance Lenders Law and
in creating a licensing scheme through which it directly regulates the finance
lenders market, has made it clear that the Finance Lenders Law is a matter of
significant importance to the state and is a fundamental policy of this state
(Brack v. Omni Loan Co., Ltd. (2008) 164 Cal.App.4th 1312).

Mike Hockett and John E. Fuller

D. Michael Hockett and John E. Fuller are no strangers to the courts. Both claim
they started AFC and DSC. Mike Hockett is listed as a director in DSC filings, and
both worked at Adesa, AFC and Auction Broadcasting Company. Many AFC loan
documents in California have John Fuller signing as president, again while AFC was
unlicensed.

Mike Hockett, owner of ABC Auctions, was honored October 2009 by the National Auto
Auction Association in San Francisco. Hockett said he and his sons now operate ABC
at nine locations in the U.S.

A month earlier, his son Brian Scott Hockett was convicted of bank fraud following
an investigation by the F.B.I. On September 9, 2009 a federal judge sentenced
Brian Scott Hockett to 18 months in prison and also was ordered by Judge Sarah
Evans Barker to pay nearly $2.5 million in restitution.

Hockett committed the fraud during a three-year period ending in 2006, while owner
of Family Management Corp., according to the U.S. Attorney for the Southern
District of Indiana. The company was a wholesaler of used vehicles operating as
Fleetmax.

Scott Hockett donated $26,500 to the Indiana Republic Committee on May 20, 2004.
It is unknown if this money was retrieved for the victims of the multi-million
dollar frauds.

Fleetmax has also been indicated as the source of counterfeit titles for both AFC
and DSC. A 2006 Indiana Inspector General stated Fleetmax had violated Bureau of
Motor Vehicle laws by submitting documents with inaccurate signatures and
identifying information and recommended that Fleetmax lose its contract with BMV.

Another son, Michael D. Hockett, pleaded guilty to conspiracy to commit extortion

following his arrest by the FBI in 2001. Hockett plotted to blackmail a Virginia
councilor into dropping his opposition to a zoning issue. According to Norfolk
Court records, Hockett sent an exotic dancer to the councilor’s office, who threw
her out, while two accomplices hid outside taking pictures.

The California Department of Motor Vehicles regulates the title and transfer of
all vehicles in California. In order for a lien on a vehicle to be valid, DMV
requires the registration of the vehicle.

Upon registering a vehicle, DMV will "issue a certificate of ownership to the

legal owner" (Veh Code 4050.) "No transfer of the title or any interest in or to a
vehicle registered under this code shall pass, and any attempted transfer shall
not be effective, ... until the appropriate documents have been delivered to the
DMV."

The ONLY exemptions are (1) when the transferee of a vehicle is a dealer who holds
the same for resale... (2) a dealer who conducts a wholesale auction.

THERE ARE NO EXEMPTIONS FOR LENDERS AFC and DSC WHO FLOOR TITLES. A lender is
required to transfer title for their interest to be valid. DMV is required to
collect registration fees. More than $5,000,000 is owed to the State of California
yet the DMV does nothing but coddle these criminals.

Dealer Services Corporation files Sister-State Judgments against California Car

Dealers
DSC has obtained judgments in an Indiana Superior Court against Californian
residents even though the contracts were signed and performed in California.

Marion County Superior Court (Case # 49D05-0803-CC-010515) entered a default

judgment in the amount of $334,221 against Citrus Heights, CA dealer Discount Auto
Sales, Inc.

Judge Gary L. Miller, sole judge of the Marion Superior Court D05, ruled DSC
proved their case for breach of guaranty even though DSC was unlicensed as a
Finance Lender in California.

Fresno, CA attorney Mark A. Vogt filed the Application For Entry of Judgment On
Sister-State Judgment at California Superior Court, Sacramento on 11/26/2008
(Case# 34-2008-00028449-CU-PT-GDS).

AFC has also filed a Sister State Judgment in Stanislaw County against City Center
Auto Plaza , a California business (#647687).

Automotive Finance Corporation Title Fraud

In 2009, New Jersey’s Governor Corzine and Attorney General Milgram reached
agreement with Automotive Finance Corporation (AFC) regarding possible title
fraud.

AFC titled cars in Arkansas by signing an “Affidavit of Repossession” even though

cars were purchased and located in New Jersey.
“It’s probably a criminal matter” said Sandy Grossman of the New Jersey Division
of Motor Vehicles. “We feel outraged, but there is nothing we can do” she says.

Federal laws violated by AFC:

1. Possession of counterfeit state motor vehicle titles with the intent to
defraud, in violation of Title 18, U.S.C. § 513;
2. Utilizing interstate commerce to transfer false and fictitious documents
with the intent to defraud, in violation of Title 18, U.S.C. § 514;
3. Utilizing interstate commerce to transport counterfeit state motor vehicle
title securities of the value of $5,000 or more, in violation of Title 18, U.S.C.
§ 2314;
4. Concealing the commission of a felony, in violation of Title 18, U.S.C. § 4.

“We can feel personally outraged, but there is nothing we can do," says Sandy
Grossman, a representative of the state Division of Motor Vehicles. "It's probably
a criminal matter, and we don't have law enforcement authority."

No, but the state does have the authority to grant title to cars located in New
Jersey, owned by New Jersey residents -- cars that never left the state of New
Jersey once they arrived here still reeking of that new car smell. It can reject
doubtful claims in Arkansas and let corporations with high-priced lawyers already
on retainer, instead of working-class people, fight it out in court.
AFC officials took title to the cars -- even though they already were purchased
months earlier in New Jersey -- by filing what are called "affidavits of
repossession" in, of all places, Arkansas.
Roger Duren, the Arkansas motor vehicle director, said representatives of an AFC
office in his state filed the affidavits claiming possession of the cars.
I assume that means physical possession," says Duren, who admitted he was
surprised to learn the cars are sitting unusable in New Jersey driveways.
Duren says there is nothing he can do, even though his agency's actions blocked
the rightful claims of New Jersey owners. He can't declare the titles invalid
despite his belief AFC had physical possession of the cars when it filed those
affidavits.

"I'd need a court order for that," he says.

Kelli Hockett gave North Carolina Mike Easley $1,000 in 2004, after receiving
$250,000 from a slush fund after manager Michael Hockett was convicted of
extortion for trying to set up and photograph a Virginia city official with an
exotic dancer (News & Observer 6/29/04

Ren’T’Own – A new way to make criminals out of the car buying public

John Fuller and DSC's "Ren'T'Own" gives dealers full ownership rights until the
vehicle is paid for. They can separate a delinquent "renter" from his beloved car
in a New York minute–no sticky consumer-protection laws to slow things down. This
is what we have to look forward to?