Special Report: Florida Couple Gets Probation in Massive JDM Fraud Case
The husband-and-wife team faced years in prison. Yesterday's plea avoids a trial.
A husband-and-wife team pleaded guilty on Thursday to one felony count each in a Miami-Dade County courtroom, after being accused of forging hundreds of documents to title and register illegally imported Japanese sports cars to then sell to unwitting customers as legal vehicles.
According to a copy of both agreements obtained exclusively by Race Day, the plea bargain whittled down more than 200 felony charges including fraud, theft and racketeering to a single felony count for each defendant.
Both documents describe the charge using the same language:
The defendant shall plead guilty to the sole count of the amended information, organized scheme to defraud in an amount over $20,000.00 but less than $50,000.00, a second degree felony.
Andres D. Diaz pleaded guilty and Nicole G. Chiong pleaded no contest in court, though both agreements provided to Race Day outline the requirement of a guilty plea. A circuit court judge accepted both pleas, helping Diaz and Chiong avoid a trial and potential prison time. Each defendant received a sentence of five years probation, with the opportunity to withdraw their plea after two and-a-half years to which the prosecution will announce a nolle prosse, or “decline to prosecute.” Both defendants are prohibited from working in titling automobiles again.
After more than 20 months of deliberation, the agreement comes just five days before trial was scheduled to begin.
Based on similar cases involving illegally imported vehicles in the past, the announcement of a plea agreement is no surprise. Such charges rarely reach trial. However in this instance, the gap between the harshest possible penalty and the terms of the final resolution is stark.
The couple faked government forms, signatures and stamps for an estimated 348 Japanese Domestic Market (JDM) vehicles over a nearly 10-year span through their Miami area companies Soho Imports and J-Spec Garage. Specific details of the scheme are outlined in my new book ‘Cult of GT-R: A True Story of Crime, Obsession and the World’s Most Coveted Car,’ with information gleaned from arrest affidavits I obtained via public records request.
The case made headlines when Diaz and Chiong were first arrested in March of 2022, largely due to the cars involved.
The list includes rare finds such as the Honda Civic Type R, Toyota Supra and Nissan Skyline GT-R — often valued at over $100,000 each. Experts say demand for JDM cars has increased sharply in recent years.
Fervent demand has long pushed importers and sellers to adopt risky tactics. The Skyline GT-R, in particular, was known through the halls of federal regulators as a “dirty word,” one former official told me.
Eighty-eight of the 348 cars worked on by Diaz and Chiong were Skylines, or more than one quarter. Forty-six were high-performance Skyline GT-R models.
Some of the most infamous Skyline importing scandals include:
Hiro Nanahoshi, owner of MotoRex, accused by customers of knowingly importing incorrect versions of the car that were not federally approved.
Daryl Alison of Kaizo Industries, charged with smuggling, conspiracy and money laundering who accepted a reduced sentence of 24 months probation and a $1,000 fine.
Black Ops Performance, a Florida company that mysteriously closed after police seized an R34 Skyline GT-R from the floor of a Daytona Beach car show.
Skyline enthusiasts can now add Soho Imports to the list.
Soho Imports and the Skyline Conundrum
Nissan never intended to sell the R32, R33 and R34 Skyline GT-R, produced from 1989 to 2002, in the United States. As a result the trio is subject to the Imported Vehicle Safety Compliance Act of 1988, commonly known as the “25-year law.” It states that a vehicle not originally sold in the U.S. cannot enter the country legally for road use until 25 years after its production date (with rare exceptions).
But that hasn’t stopped people from bringing them across the border.
The plan carried out by Diaz and Chiong via Soho Imports intended to present the Skylines and other JDM vehicles as legally titled to own and use. Instead, the high profile nature of the charges has likely made it more difficult for JDM owners across the country.
Shortly after their arrest, a letter issued from Florida Highway Safety and Motor Vehicles indicated that the legal Florida titles for all 348 vehicles involved had been revoked. Not only that, but the Department of Homeland Security prohibited them from ever receiving a legal title in any state.
That irked JDM enthusiasts. The move essentially forced several rare and historically important vehicles off U.S. roads forever. Some of the Skyline GT-R models included in the Soho ring are equipped with coveted N1 engines, S-Tune suspensions or Nismo aerodynamic parts that are difficult to find anywhere in the world.
The pressure could also increase on Skyline owners with no connection to the Soho case. In the past, owners reported an increased frequency of being pulled over and asked to prove proper documentation following the respective falls of MotoRex in 2006 and Kaizo Industries in 2009. In some instances, authorities have specifically sought out Skylines in the wake of those cases, forcing many owners into hiding.
The fervor surrounding Skylines and other JDM vehicles is outsized considering their modest origins. In Japan, these models were often relatively affordable when new. They offered exciting, yet comfortable driving dynamics suited for everyday use.
Now, Japan-only models like the Skyline, Supra and Civic Type R are among the most coveted vehicles in the world. To some, the risk of being caught with an illegal import is no match for the reward of owning and enjoying their dream car.
Of course, the risk won’t be around forever.
Both the R32 and R33 Skyline GT-R are now fully legal to import after reaching 25 years from their original production dates. Some models of the R34 Skyline GT-R will hit 25 years after production in January 2024. Owners will take possession of legal R34 GT-Rs just weeks after Diaz and Chiong closed their case.
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