Directors of two car dealerships are expected to be charged this week over the suspected tampering of mileage gauges on imported Japanese cars.

Sources said charges were filed in the court registry by the police Financial Crimes Investigations Department and three people will appear before a magistrate this week.

Alexander Spiteri, owner of Alexander Auto Sales, which was only registered last May, and Roderick and Alison Vella, operating Rokku Auto Dealer, will face fraud and money laundering charges. They will also be charged with conspiracy to commit the crimes. The prosecution will also request the court to freeze all their assets.

The alleged racket began in 2019 and saw high-mileage cars bought cheaply in Japan and imported to Malta where their gauges were tampered with to fool drivers into thinking they were buying lesser-used cars.

The cars were sold after false information was inserted in local systems and forged Japan Export Vehicle Inspection Centre (JEVIC) certificates were printed in Malta. JEVIC has a publicly available online system where mileage and other vehicle details are logged, but the data was not checked thoroughly by Maltese authorities. Some cars had discrepancies of bet­ween 30,000km and 130,000km.

The alleged racket began in 2019 and saw high-mileage cars bought cheaply in Japan and imported to Malta where their gauges were tampered with to fool drivers

The consumer protection authority had also conducted its own investigation into the matter. When the case first made headlines, car owners whose vehicles were tampered with were asked to formally complain to the Malta Competition and Consumer Affairs Authority. The authority had said it would investigate the claim and coordinate compensation.

After Times of Malta published a guide to help people verify the true mileage of their imported cars, a number of angry customers confirmed they had tens of thousands of kilometres wiped off their second-hand Mazdas and Toyotas.

In June last year, a media investigation exposed how they were allegedly tampering with the mileage gauges of cars imported from Japan. At the time, Malta Today had reported that as many as 300 cars may have been affected.

The Used Vehicles Importers Association immediately suspended the two dealerships. Since the rigged odometer scam was exposed, victims have received either a partial refund, a full refund or had their car transferred back to the dealer.

Both Spiteri and the Vella couple were arrested in October 2022 on suspicion of tampering with the mileage counts of imported cars. They were questioned and released on police bail.

Earlier this month, the three directors challenged a court order they say has practically bought their businesses to a standstill, with their assets frozen and their families in dire straits.

Through their lawyers Franco Debono, Francesca Zarb and Marion Camilleri, Spiteri and the Vellas argued that the police investigation and the blanket attachment orders issued by the Criminal Court were in violation of their fundamental rights.

They are so far deemed innocent, but the orders still stand, having been renewed six months after they were issued. On account of those orders, both Spiteri and the Vellas cannot pursue their business and can no longer lead a decent life, they argue.

They have filed separate applications before the First Hall, Civil Court in its constitutional jurisdiction, laying out the hardships they have faced since targeted by such a “draconian” legal measure.