Los Angeles District Attorney arrests Victim of Loan-Shark

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 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 have 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 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 neighbors 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 was not legally licensed as a lender in CCalifornia 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.

California Department of Motor Vehicles

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.