DEARBORN, Mich. – An alleged auto scam that spans multiple southeast Michigan cities and counties, and reaches into another state, has left more than 25 people out hundreds of thousands of dollars, according to police.
Victims said the man behind it is Marcelo Cipriano Alvarado. This is a man the Investigators at Local 4 have been investigating since September of 2025.
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Alvarado, 31, of Dearborn is now charged with 10 felonies out of Wayne County including running a criminal enterprise, using a computer to commit a crime, and eight counts of false pretenses.
“It is alleged that the defendant took advantage of honest, hardworking people by taking their money to repair cars and in some instances purchase a car on their behalf,” Wayne County Prosecutor Kym Worthy told the Investigators at Local 4. “He took their money and took advantage of them.”
Alvarado is accused of taking payments for cars that never arrived, of taking cars to repair and never returning them and of issuing bad checks. Multiple victims Local 4 spoke to said Alvarado gave them excuses like two family members died or their parts were “on the way.” They said eventually, Alvarado would stop answering the phone to buy time.
The Investigators at Local 4, went through hundreds of pages of police reports, complaints and documentation gathered by the Metro Detroit Auto-theft Recovery Team (MDART) -- a task force investigating Alvarado, along with dozens of criminal and civil cases from other agencies. Local 4 also spoke to two alleged victims in depth about their experiences with the man they call a “slick swindler” and “crooked as f---.”
“The victims are shocked that someone they trusted would do something so cruel,” Prosecutor Worthy added. “I would urge these victims not to beat themselves up over placing their trust in this man. He is an alleged practiced and heartless grifter. They have done the right thing coming forward to seek justice.”
If you need something investigated you can reach out to the Investigators at Local 4 through the ClickOnDetroit Help Desk or by emailing us directly at Local4Investigators@wdiv.com.
You can contact Investigator Erika Erickson directly at eerickson@wdiv.com, and Kayla Clarke at kclarke@wdiv.com.
James Balina’s story
James Balina is listed as a victim in the 10-count case against Marcelo.
Balina said he first noticed cars displayed at a storefront in Allen Park in 2021 under the name AP Service Center 1. He said Alvarado convinced him he was buying a Chrysler 300 Hellcat. Balina said his father and brother also bought cars after learning about the pricing, calling Alvarado “very convincing.”
“He’s a slick swindler, and he’s a snake in the grass -- he’s a crook,” Balina said.
Balina said he and his family gave Alvarado money and parts they had already purchased to build one of the cars. At first, Balina said, Alvarado sent photos and texts showing cars “on the way” or “in the shop.” Then, Balina said, the more colorful excuses began. So many, that later, Balina said Alvarado appeared to lose track of his lies.
“He’ll give you the world, and he’ll snag it right under ya and take it and run,” Balina told Local 4. “He has told me his mom has died multiple times. He’s told me brother has died . . . I mean, how many times can you have the same family member die?”
Balina said his calls eventually went unanswered. Months later, he said, the storefront was empty and his family was out a total of nearly $80,000. Balina said they hired an attorney who tried to serve him with a demand letter, but it went nowhere.
“He ran in the house… (Alvarado’s) hiding in the house, so we call the police. We’re just like, ‘we just want our stuff,’” Balina said.
Balina then filed a report with Allen Park Police. His family said they remain without their money or cars years later.
Marvin Morris’ story
Marvin Morris, of Detroit, is also listed as a victim in the 10-count case against Marcelo.
Morris said he “hasn’t seen a dime” -- even after confronting Alvarado and recording him on his cell phone.
He told Local 4 he first met Alvarado at his storefront called Drive Dreams LLC, in Lincoln Park in early June of 2025.
Morris said he dropped his car off for enhancements, adding that his car was in working order. Morris said Alvarado told him that he inspected his engine and told him it required “a full engine teardown.”
After discussing it, Morris said he paid $5,000 up front, and later another $3,500 after being told the engine was being worked on. But Morris said he never saw his original motor or the new motor ever again.
Morris said he was told the motor was at a shop and that another man dealt with “the motor man.” When Morris asked to call the “motor man” directly, he said he was given a slew of excuses -- like he was “an hour away,” and the “shop was closed.”
Then, Morris said he pressed again and began showing up at Alvarado’s shop “every day” asking about his car. In September of 2025, Morris decided to take his car back, after noticing other parts slowly disappearing from it. He was able to retrieve his car, which was still missing “dozens of parts.” Morris said Alvarado then called him to give him excuses.
“(Alvarado) called me on the phone saying his mother died . . . he ain’t got the money. He’s got to pay for funeral arrangements,” said Morris.
Morris said he even captured Alvarado on video admitting to owing him about $12,000 because parts were removed from the car and the “entire motor disappeared.”
Morris confronts Alvarado on video on September 25, 2025:
Morris: “All right, this is recording. So, you’re going to give Marvin Morris how much money tomorrow?
Alvarado: “12 grand. That’s what we’re supposed to do.”
Morris: “$12,000 tomorrow.”
Alvarado: “Correct.”
Morris: “All right.”
Known cases against Alvarado
The Investigators on Local 4 found reports of alleged fraud, embezzlement and larceny dating back to 2017.
In 2025, police in Trenton received two reports alleging fraud and larceny tied to Alvarado: one woman said she paid $6,500 and never received a car; another couple said they were scammed out of $3,500. Records show the couple also took Alvarado to civil court.
In Warren, records obtained by the Investigators on Local 4 showed Alvarado was arrested in October of 2023 on allegations that he swindled a woman out of more than $15,000 -- allegedly taking cash and then giving a bad check in return. In Clinton Township, a man told police in March of 2025 that he was “defrauded out approximately $18,000” by Alvarado. Records also show there is an active warrant for Alvarado’s arrest in Toledo, Ohio, for felony theft by deception; Toledo authorities said he issued more than $8,000 in fake checks to buy car engines.
Documents obtained by Local 4 from Michigan State Police and other agencies show Alvarado being investigated by Plymouth Township Police, Lincoln Park Police, Grosse Pointe Woods, Allen Park, Lincoln Park, Wyandotte, Dearborn, Dearborn Heights, Southgate, Warren, Trenton, Toledo, and Clinton Township -- with a note that some may be missing.
Records also said members of the MDART task force have documented “25+ victims” and “12 more complainants regarding Marcelo that have not been investigated yet.”
Civil cases, licensing records, wife’s financials under investigation
Alvarado has also been the subject of multiple civil lawsuits and is associated with at least two limited liability companies.
In Michigan State Police records, for example, one civil case against Alvarado described a couple being scammed out of $24,000. The Investigators on Local 4 contacted the attorney on that case, Steven Hickey, who said they still “haven’t gotten a penny.”
“This guy is an incredible scammer,” Hickey told Local 4. “I’d love to see someone expose this guy.”
“Not licensed mechanic” and “failed in every category multiple times,” were statements included regarding Alvarado in the hundreds of pages of documents obtained by Local 4.
Members of MDART, according to records, said they are also looking into the accounts of Alvarado’s wife, because “Alvarado has instructed some victims/customers to make checks payable to his wife.”
Attempts to contact Alvarado, his “deceased” mother and attorneys
Alvarado is currently incarcerated on a $10,000 bond out of Wayne County.
When Local 4 went to an address in Dearborn back in October of 2025, where multiple sources said and records show Alvarado had previously resided, we were told he no longer lived there.
When Local 4 went to his home again the week of November 3, 2025, someone who said they were related to Alvarado came outside. We asked if we could speak to Alvarado’s mother, because Alvarado had allegedly been telling multiple people that she was dead.
The family member confirmed that Marcelo Alvarado is related to them and that his mother was “not deceased.” They said his mother was working on cleaning out the garage during our conversation that day.
“She is very much alive,” the family member said, before asking us to leave.
Local 4 was eventually able to catch up with Alvarado before he went into court in December of 2025. After introducing ourselves and telling Alvarado why were there, he got on his cell phone and told us to leave:
- Alvarado: “If you could please leave, I’d appreciate it. Do I need to go get a court officer?”
- Reporter: “They said that you told them your mom died . . .”
- Alvarado (on the phone): “Hey, I have a reporter here. She’s not leaving me alone.”
We left and asked to speak to his now former attorney, Edward Ewald, who is also named as a co-defendant in a civil case against Alvarado. Here’s part of our conversation outside of court after multiple attempts to contact him, previously:
- Ewald: “The police department and Wayne County have decided to turn civil cases into criminal cases.”
- Reporter: “You were named as a defendant also in one of the civil cases. Do you have a comment on that?”
- Ewald: “No. That’s foolish.”
Ewald left the courthouse, but we caught up with him again outside. Here’s part of that conversation:
- Ewald: “You’re only getting part of the story and I’m not here to give you the rest of the story.”
- Reporter: Why?
- Ewald: “Because he’s been charged criminally and I’m not going to try the case in the public. We’re going to court. We’re going to try all these cases.”
Since Alvarado was charged with 10 counts -- including conducting a criminal enterprise, records show his new attorney is Ben M. Gonek of the Law Office of Ben Gonek, PLLC.
Ewald told Local 4 this week: “A decision was made that Ben was going to take over -- it was becoming too overwhelming for me.”
Ewald added that he “is not representing (Alvarado) on any other cases anymore.”
“They’ve got me roped in this lawsuit that I’m still trying to get out of,” Ewald added. He declined to comment any further.
Local 4 reached out to Ben M. Gonek, but he declined to comment on this case at this time.
Impact has been more than financial
Multiple people and their families told The Investigators on Local 4 that Alvarado’s alleged scam has taken a heavy emotional toll in addition to the hefty financial loss.
Balina said his family is “beyond fed up.” Many of Alvarado’s alleged victims have also said they do not believe the abuse and scamming will stop unless Alvarado stays in jail. Others said they don’t believe jail will stop him -- “it will just delay him.”
“How can you steal . . . from multiple people and be OK with it? Sleep?” said Balina.
“I just think everybody just needs to get together and speak up,” Morris said.
Investigators from multiple agencies urge anyone who believes they may be a victim of Marcelo Cipriano Alvarado, who some say also goes by “Celly,” or “Chelly,” to call police and file a report.
Alvarado is scheduled for a Probable Cause Conference regarding the 25th District Court case (Criminal Enterprise) at 9 a.m. on June 16, 2026.
If you need something investigated you can reach out to the Investigators at Local 4 through the ClickOnDetroit Help Desk or by emailing us directly at Local4Investigators@wdiv.com.
You can contact Investigator Erika Erickson directly at eerickson@wdiv.com, and Kayla Clarke at kclarke@wdiv.com.