Customers who were allegedly cheated in a racket involving the tampering of odometers on used Japanese cars told court on Monday they had received compensation after finding out that the mileage on their new car’s odometer was not right. 

Directors of two car dealerships - owner of Alexander Auto Sales Alexander Spiteri, and operators of Rokku Auto Dealer Roderick and Alison Vella - are facing fraud and money laundering charges. 

In 2023, both dealerships were suspended by a sectoral lobby group - the Used Vehicle Importers Association - after Malta Today broke reports of the alleged scam.

The suspected scam impacts car sales dating to 2019 and allegedly saw dealerships register cars imported from Japan with a lower mileage count than they had accumulated. 

‘Thousand something’ compensation

Testifying in front of Magistrate Rachel Montebello, one customer recalled he bought his car in 2022 from Alexander Auto Sales. He said he paid the amount by cheque and a cash deposit. 

While he encountered no problems with the car, he became aware of the alleged racket following news reports. 

When he realised his car’s logbook indicated that the mileage was 30,000 kilometres less than it was, he went back to the showroom. 

He said the vendor told him he was unaware of the problem and, a week later, a compensation sum was agreed between himself and the dealer. 

When the magistrate asked him to quantify the compensation, the customer said “I was happy and the story ended there”.

“But how much was the compensation,” the court asked. 

“I do not know. I don’t remember the amount,” the customer said, adding he believed it was a “thousand something”.

He said he signed a paper as an agreement, but he did not have the paper on him.

Another customer said she purchased her Mazda Demio from Rokko Auto Dealer.

She too went to the dealer after she was made aware that the mileage indicated on the odometer did not reflect the car’s actual mileage.

She said she did not understand much about cars, and “after all that hassle” agreed on the compensation. 

She also said she signed a paper as an agreement but did not have a copy of it. 

Another customer told court her father had purchased a Mazda Demio for her from Rokku Auto Dealer in 2022. She said the car was chosen due to its low mileage and it was purchased for €11,000. 

She said she was contacted by the authorities in connection with the car and its logbook, also because of a discrepancy between the mileage indicated by the odometer and the actual mileage. 

Replying to questions by defence lawyer Franco Debono, the customer said that an agreement was reached between the father and the dealer regarding compensation and that she was happy with her car.

Her father also took the stand and confirmed the car was still in good condition.

Defence lawyers Franco Debono, Marion Camilleri and Alessandro Farrugia appeared for the accused.