As it's usually the deal when working with the state, everyone wants a piece of the action. Apparently in German authorities are investigating a case of fraud involving their Cash for Clunkers program. The German authority for investigating organized crime are questioning a number of car parks which sold vehicles where to be destroyed as part of the Cash for Clunkers program. Because there have been a number of cases of fraud, the authorities are investigating every company involved in the program.
Sources are reporting that thousands of cars which were meant to be destroyed have been sold illegally, and are used for parts. The German organized crime investigators are says that around 50,000 cars have been sold in this fraud. Most of them ended up in Easter Europe and Africa. The authorities are estimating that the fraud goes up to 125 million Euros.
To avoid the same situation, the Cash for Clunkers program in the USA is destroying the engines of each car.
[Source: Automarket]
