Straw buyers are real buyers
gents with the Secret Service and the Department of Homeland Security, who questioned whether these small export companies were violating federal law by usingstraw buyers -- people paid small sums to buy cars -- to conceal that the vehicles were being bought by people who had no intention of keeping them and were using cash from other people to make the acquisitions. Federal authorities have argued that using straw buyers is a deceptive practice that potentially deprives American consumers of a chance to buy the luxury cars and limits the ability of automakers to keep tight control over sales to domestic dealers and to foreign countries.
But the Justice Department recently advised its prosecutors to be more judicious in pursuing civil forfeiture actions -- and even criminal cases -- against car export companies and their owners.
"Over the past year, we have been engaged in a comprehensive review of the asset forfeiture program, including straw-buyer luxury export cases and other aspects of the program," said Peter Carr, a Justice Department spokesman, in an emailed statement. "As a result of this ongoing review, the department is encouraging prosecutors to pursue civil and criminal sanctions for straw-buyer fraud cases that lead to other criminal violations, such as tax fraud, identity theft fraud and the submission of false export documents."