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The
thought of unwittingly purchasing a stolen boat does not occur to
most boat buyers. When it happens it doesn't make the morning paper
or the evening TV news. Yet the number of small boats that are stolen
each year has been steadily increasing for several decades, to the
point where it involves several hundred thousand boats annually
across the nation. The odds of running across one of these has become
uncomfortably high.
The risk of the stolen boat being discovered is
also increasing. All over the nation, the legions of bounty hunters
roaming the docks and marinas are also increasing. Thus, the chance
of someone who unwittingly purchases one of these boats of loosing
it is fairly high.
In the state of Florida alone, which has about
one million registered boats, based on insurance records, I estimate
that up to 5,000 boats are reported as stolen annually. Some are
stripped and destroyed, others are shipped out to foreign countries,
but the vast majority of stolen boats end up being altered in various
ways and resold in other areas or states.
Stolen boat cases are often involved in insurance
fraud. Unscrupulous owners who get in financial trouble rather frequently
will sell the boat for whatever he can get for it and, at the same
time, report it stolen and try to collect the insurance. Its a quick
way to make a lot of money if they can get away with it. This scam
has become so widespread that both insurance companies and state
agencies are very much on the alert. Many state agencies have stepped
up their review procedures of title and registration changes so
that more and more of these frauds are being discovered. The problem
for the boat buyer here is that this greatly increases the chance
of his unwitting purchase of a stolen boat being discovered. When
that happens, he may find himself involved in costly litigation.
Most people who purchase a stolen boat are never
aware of the fact that they own one unless its discovered by a state
title agency, or the small army of bounty hunters commissioned by
insurance companies that are searching for them. The bad news is
that even though one may have no knowledge of having purchased a
stolen boat, when it is discovered the new owner has to forfeit
the boat, usually with no recourse for recovery of his loss. Even
worse, he may even find himself trying to fend off criminal charges
of conspiracy or being in possession of stolen property.
As many as a half-dozen times per year I run across
boats that have anomalies in either the hull or registration numbers.
In fact, most stolen boats that are resold have only a minor change
in the H.I.N. or Hull Identification Number. Because these numbers
are only molded into the plastic of the hull, it is a very simply
matter to alter it. Hull numbers can be completely changed, or it
may only have one or a few digits altered. Either way, its a process
that a thief can accomplish in less than an hour.
One of the above hull numbers
was fraudulently altered. Can you tell which one? The center number
was altered by the builder. It is legitimate despite the ragged
appearance of the impression. the right number is unaltered. The
number at left is not a bad picture, but a number on a stolen boat.
The tip-off is the indistinctness of the numbers that showed obvious
signs of alteration.
But what about other identification numbers such
as engine serial numbers, you may ask? How do thieves alter these
numbers? Ah, there's the problem for the poor soul who purchases
a stolen boat. It is a very rare instance when insurance surveyors
or bounty hunters find boats on which the engine numbers have been
changed or removed. That means that the engine numbers remain as
a means of positively identifying a stolen boat. And if its discovered,
the owner will surely loose it.
Fortunately, its a fairly simple matter to follow
certain procedures to make sure that the boat you are contemplating
purchasing is legitimately owned by the seller. Consider the following
important points.
Be extremely wary of a hull number that appears
to be obscured in any way. When older boats have been repainted,
often the numbers are painted over so that they're difficult or
even impossible to read. On the other hand, this may have been an
intentional act to make the number impossible to read. Most of my
clients don't even think twice about missing or obscured numbers,
and that can be a big mistake. Regard any hull number that is not
perfectly clear with great suspicion. If a number is completely
or even partially obscured, do not accept the explanation that this
happened during repainting. Assume the worst until proven otherwise.
Be wary of any hull number that shows any sign
of having been altered. Hull numbers can be changed by grinding
out the old and molding a new number in place with new gelcoat.
Because gelcoat material fades and changes color with time, this
operation may make the presence of new gelcoat rather obvious if
one is looking closely. There should be no ripples or waviness around
the numbers. Be suspicious if the molding surface is not smooth
and the numbers very clear and distinct.
Check closely for signs that any number has been
altered. Examples are turning a 1 into a seven, a 5 into an 8, and
so on. Alterations on smaller boats are sometimes laughably crude.
It happens rather frequently that builders change
the numbers on their own boats. Many state laws allow a builder
to change a number of a boat that has been in their own stock from
one model year to another so long as it has not been sold. Frequently,
these number changes look very suspicious. Often they're perfectly
legitimate, but its foolhardy not to check. Call the builder and
ask about it. They are usually very cooperative in this regard.
Many states have a provision in their titling law
that allows for the reassignment of a hull and registration number.
This is called the "homemade boat" provision which provides
the opportunity for a great deal of mischief. Let's say, for example,
that I acquired a 1976, 29' Seabird hull and completely rebuilt
it with new deck, interior and engines, etc. I could apply for a
new title under the homemade boat provision and be assigned an entirely
new hull number and title. In Florida, the new number assigned would
have an FLZ prefix that indicates a homemade boat. The problem here
is that stolen boat artists can do the same thing with any stolen
boat. Therefore, any boat with an FLZ prefix should be viewed with
great caution.
The problem with this registration
number is painfully obvious - its got one too many digits. But not
really. The "1" between the L and 4 is not a stick-on
number but the residue from a number that was removed. Here, the
adhesive was blackened with crushed pencil lead to make the missing
number show up. The original number was 1438 but had been altered
to 4387.
Another tip off may come from evidence that stick-on
lettering for state registration numbers have been changed. Sometimes
the hull finish will have faded and the old numbers can be seen.
In other cases, the remaining gum residue of the old letters may
be apparent, or can be shown up by rubbing a little dirt over them.
The dirt will stick to the nearly invisible adhesive and be shown
up more clearly. Because a number is supposed to remain for the
life of the boat, unless its been moved from another state, there
is not likely any good reason for the change. I have discovered
several boats this way.
More stolen boats are discovered through inconsistencies
in the paper work than any other means. Federal law requires that
when state registration numbers are assigned, that number remains
with the boat unless its reregistered in another state. And herein
lies yet another means for thieves to try to legitimize a stolen
boat. Transference of registrations and titles from one state to
another provide a much easier means for the thief to provide false
proof of ownership. The reason being that its harder, if not impossible,
for the state bureaucracy to make a thorough check of another state's
records. And bureaucrats, being what they are, usually won't make
that effort. Buyers should be extra cautious when looking at an
out-of-state boat in their home state.
Also be wary when "things just don't seem
right." I know that's a rather vague statement, but here are
some examples. The owner is a person who never appears and is always
represented by a "friend". Used boats normally have a
lot of the owner's cast-offs on board. Beware of a boat that is
totally devoid of the little things like useless junk in drawers
and so on. The boat appears to be economically beyond the means
of the seller. While its not nice to stereotype people, sometimes
there's just cause for suspicion. If the boat and the owner somehow
just don't see to "fit," don't ignore the disparity.
A boat buyer can perform his own investigation
by following this procedure:
- Immediately be suspicious of any hull number that shows the
slightest sign of not being exactly right.
- Obtain from the owner as much paper work as possible. Find
out how long he has owned the boat and get copies of all prior
registrations. Examine all official documents for any sign that
they have been altered. You would be amazed at how many thieves
simply alter numbers on titles and registrations.
- Be wary of any seller who has owned the boat for less than
a year.
- Be wary of freshly painted or refurbished boats.
- Owners that can't provide any records such as repair invoices
and so on should be cause for suspicion. Most boat owners keep
good records and there's no reason why they should not at least
let you see them.
- Contact the state titling agency and verify the hull and registration
number against the seller's name and address. Be wary of any
inconsistencies. This can be done by phone in most states.
- Ask to see the title and registration before signing
a purchase agreement or giving a deposit. If there is more than
one owner, such as a husband and wife, ask to speak to the other
party. Don't get caught in a divorce situation where one party
completes the sale by means of theft from the other.
- For federally documented vessels, use a professional documentation
service and make sure that they obtain and provide you with
a copy of the document abstract. Do not complete the
purchase until you have thoroughly reviewed this document. Make
sure that all liens have been settled.
- Approach any boat with great caution that is being sold by
a dealer which does not have it's own registration numbers,
but instead has dealer numbers on it that the dealer
will remove. The odds are high that there is a problem.
- Watch out for boats that have been recently brought to your
state from another.
- Examine all official documents carefully for evidence of alteration.
Accept only originals and not photocopies.
- Don't purchase a vessel that came from a non-titling state
such as Alabama. The odds are extremely high that the boat is
not legitimate.
- Examine the hull sides on the bow for evidence that registration
numbers have been removed or altered. Frequently changes will
be visible by gum residue or the outline of numbers against
faded gelcoat or paint.
- Another means of checking are the variety of registration
stickers provided by many states. These stickers usually have
a decal number that can be followed up on with the state.
Crooks frequently overlook this subtle point. The decal numbers
must match the registration.
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