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Unlicensed Used Auto Dealer Indicted for Fraudulent Schemes and Tax Evasion

February 3, 2020

Defendant Accused of Curbstoning

PHOENIX – Attorney General Mark Brnovich announced a State Grand Jury indicted Randolph Ezrre, of Rio Rico, with Fraudulent Schemes and Artifices, and 11 counts of Filing a False Tax Return for allegedly failing to pay transaction privilege tax, also known as sales tax, on used car sales in 2017 and 2018.

This investigation was performed by the Arizona Curbstoning Enforcement Task Force (ACE-TF) made up of Arizona Department of Transportation, and the Arizona Department of Revenue, in cooperation with the Arizona Attorney General’s Office. Following a lead, ACE-TF detectives discovered multiple used cars listed for sale by the same owner on its website with the same contact phone number. Through a social media database search, detectives discovered the phone number was associated with approximately 112 other used car ads within that same period. It is alleged that the cars were not for sale by individuals rather marketed by Randolph Ezrre Wholesale Auto Sales.

Ezrre, the owner-operator of Randolph Ezrre Wholesale Auto Sales, is accused of selling the used cars to the public without remitting the tax due on those transactions.  For tax years 2017 through 2018, Ezrre allegedly filed false tax returns claiming he had no taxable sales. It is alleged that between 2017 and 2018, Ezrre had approximately $313,145 in taxable sales and would have owed approximately $26,930.47 in taxes to the State of Arizona.

According to ADOT, under ARS 28-4301, a person can only sell, offer to sell, exchange, or negotiate up to six vehicles in any 12 consecutive months without a used motor vehicle license. The sale of the seventh vehicle qualifies them as an unlicensed automobile dealer subject to criminal prosecution.  Unlicensed automobile dealers sometimes referred to as “curbers” or “curbstoning” sell vehicles on street corners or vacant lots. Individuals who engage in curbstoning avoid having to comply with the same regulations as licensed auto-dealers are required to follow. Consumers can file a complaint on an unauthorized automobile dealer online here.

All defendants are presumed innocent until proven guilty in a court of law.

Assistant Attorney General Mary Harriss is prosecuting this case.

A copy of the indictment can be found here.