Two Arrested in Newcastle Used Car “Oil-In-the-Engine” Scam

NEWCASTLE — The Placer County Sheriff’s Office (PCSO) says it has arrested two suspects in an “oil-in-the-engine” scam, which took place in Newcastle. The Sheriff’s Office alleges that, during the sale of the scam victim’s vehicle, the suspects introduced oil into the engine, causing the car to smoke during a test drive.

The “oil-in-the-engine” scam typically works by tricking someone selling a used vehicle into believing a catastrophic engine failure has taken place. In general, a group of more than one scammer will pose as potential buyers. While one or more members of the group distract the seller, a scammer secretly pours engine oil or a similar substance into the coolant reservoir, radiator, or engine bay. When the car exhibits false signs of failure, like smoking, the scammers attempt to haggle for a steeply reduced price.

In the Newcastle incident, the victim became suspicious of engine tampering and instructed the suspects to return another day. The victim then contacted deputies, after which a follow-up meeting was arranged. When the suspects arrived for the follow-up, PCSO deputies and detectives arrested them instead.

Inside the suspects’ vehicle, the PCSO says it found counterfeit documents and evidence of identity theft. Their vehicle was also connected to a similar scam in the Bay Area, in which the original owner was tricked into selling the car for less than 25% of its value.

Both arrested suspects, 19-year-old Iulian Mihai and 36-year-old Decebal Mihai, both from Fremont, were charged with theft by false pretenses, conspiracy, possession of counterfeit registration materials, and identity theft. The PCSO reminds potential car sellers and buyers to take precautions, and the parking lot of any Placer County Sheriff’s Office location can be used for an exchange.