Police have arrested and charged nine suspects with operating a multi-year title fraud scheme that extended across northern Georgia. Their arrests come after a six-month investigation revealed the scheme generated more than $1 million over several years.
The scam involved local car dealers who would sell older, high-mileage cars at inflated prices to unlicensed drivers who could not legally register them. The Hall County Sheriff’s Office (HCSO) said hundreds of vehicles were registered using this fraudulent scheme.
How did the title fraud scheme work?
After selling the cars, two of the suspects allegedly registered the vehicles under corporate names they controlled and then sold the unlicensed drivers insurance through a company they owned. These two suspects operated multiple limited liability companies out of office space in Gainesville. They allegedly worked with multiple local auto dealerships to facilitate these fraudulent vehicle registrations.
The scheme essentially allowed them to operate as unlicensed car dealers while avoiding paying the required taxes and fees. A grand jury indicted all nine suspects on charges including violations of Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) Act.
The suspects now face numerous charges
“In June 2025, HCSO learned of ongoing title fraud being committed by Brandy Marie Pitts, 46, of Lavonia, and Susan Faye Palencia, 61, of Homer. Both women owned multiple LLCs operating out of office space in Gainesville. Multiple auto dealerships in Hall County, including K&M Auto Sales, In House Auto Finance, and Go Auto Sales, colluded with Pitts and Palencia to commit the crimes,” the Hall County Sheriff’s Office wrote in a statement…