Lawsuits and investigations after the disappearance of 90 luxury cars from a bankrupt dealership
Lawsuits and criminal charges have erupted after a South Florida luxury car dealership filed for bankruptcy and up to 90 Lamborghinis, Ferraris and other high-priced cars disappeared from the dealership.
At least nine people have filed lawsuits in Broward and Palm Beach counties, alleging they purchased the vehicles but they were never delivered, or titles are missing and ownership is in dispute, a reported the South Florida Sun Sentinel.
Boca Raton police also opened at least 26 investigations into car fraud allegations, after Excell Auto Group filed for bankruptcy in April. The business and others were owned by Scott and Kristen Zankl, the newspaper reported.
Derek Stephens, who is suing two companies involved in the case, said he lost a 2013 Ferrari 458 Spider that he left on consignment at one of the Zankls’ businesses, Karma of Palm Beach, according to the Sun Sentinel. . Karma allegedly told Stephens that the car had been taken by the business owner as part of a dispute over unpaid loans. Karma had agreed to pay Stephens $230,000 if he sold the vehicle, Stephens’ lawsuit states.
“Some people don’t feel sorry for him, having that kind of car,” Stephens’ attorney Darin Mellinger said. “Even still, it’s a sad situation.”
Plaintiffs will likely have to wait months or years for disputes to be resolved while the bankruptcy court sifts through all the creditors to whom the dealership and related businesses may owe money.
Excell Auto Group’s bankruptcy petition estimates it owes between $10 million and $50 million to 49 creditors. Assets available for distribution to unsecured creditors range from $0 to $50,000, depending on the record. The court asked the owners of the dealership to produce a list of all the locations of the missing cars.
Was this item valuable?
Here are some other articles you might like.
Interested in Dealers?
Receive automatic alerts for this topic.