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.

“Because an unlicensed person cannot legally register a vehicle, sales personnel at the dealerships would direct the customers to Pitts and Palencia, who would charge the customers hundreds of dollars to register the vehicles under their corporation names,” the HCSO statement continued. “In addition, they would urge the drivers to obtain insurance through America Insurance Agency, a company the women owned.”

The investigation determined that the pair had been conducting this scheme since 2018. Doing so allowed them to illegally obtain more than $1 million.

One of the alleged victims of the title fraud scheme speaks out

Arturo Soto, a victim who says he bought a car from some of the suspects, spoke with WSB News about the scam. He said he recognized the “lady who worked the front desk,” to whom he would pay. He also said some of the people arrested helped him buy his previous car.

“I would never think that they would try to scam people,” Soto said. He also said he has a legal driver’s license and purchased his car insurance elsewhere, not through the company the women owned.

Despite not being directly affected by the scheme, he said, “I think they should get locked up. It’s crazy to steal money from people.”