Keuylian, owner of Lamborghini of Orange County and Lamborghini of Calabasas — both now closed.
Last month, he pleaded guilty to bilking Volkswagen Credit Inc. of at least $6 million in floorplan loans in a scheme that began in the fall of 2007. He failed to report the sale of inventory to the captive, according to the plea agreement. Instead, Keuylian used the proceeds to pay down debt on his Southern California vineyard, a commercial building in nearby Newport Beach and a Lotus dealership in Beverly Hills.
In a desperate move to stay afloat last October, Keuylian sold much of his supercar inventory for ludicrously low prices, including a $300,000-plus Lamborghini LP640 that went for $60,430.
The scheme escalated last October, when he sold 54 vehicles during a two-week sale, mostly to other dealers and auto auctions. He steeply discounted most of the vehicles, which included 45 Lamborghinis, four Bentleys, two Mercedes, a Ferrari, a Jaguar and a Dodge Sprinter van.
For instance, Volkswagen Credit had loaned him $336,320 to buy a 2008 Lamborghini Murcielago. He sold it for $90,000. He had a $387,720 floorplan loan for a 2009 Lamborghini LP640, which he sold for $60,430. Seventeen other vehicles had discounts of at least $100,000, and Keuylian sold all but five for tens of thousands of dollars less than their floorplan loans.
wow… but the thing i dont understand if he had a loan out on the vehicle through vw on a lambo for 387,720 and sold it for $60,430 the new owner wont get a title from vw until the lean is paid off…
I assume the guy that bought the LP640 for 60k is fucked though since it’s basically stolen property. It will be repo’d and he’ll get the stand in line with other creditors trying to squeeze blood from a stone. Being an individual he’ll be last in line too.
^^ how would that be true, he bought the car with the title etc, i would imagine all the blame and the remainder of the money would be owed by the dealership
it will get sticky… since it isnt actually stolen, unlike those stories of people who buy stolen title washed vehicles only to have them taken back years later…
The guy was within his rights to take a loss on the vehicle… it just so happened that he had a loan out on it for more…
and all of the cars that were sold at those rock bottom prices were sold to other dealerships who should have known better, and there were some kickbacks involved…
he did that so nobody would run around screaming about how they bought a lambo for 60k… and then he would have lines at his door demanding the same deal
Most of the cars found their way into the hands of other auto dealers and auctions, and currently 14 of the cars have been impounded by the FBI pending further investigation.
EDIT: Little more from another article:
The FBI has impounded 14 of the vehicles sold in connection with the scheme. The cars will either be returned to their new owners or be given to Volkswagen Credit, Stolper said, depending on the circumstances surrounding each car’s sale.
Most of the cars found their way into the hands of other auto dealers and auctions, and currently 14 of the cars have been impounded by the FBI pending further investigation.
Maybe an investigation for fraud, but if the sales were legitimate I don’t see any reason why the buyers would lose their property. If the dealers conspired to defraud the creditors of the original dealership, then the property will probably be taken back. If not, tough luck.
If you sold me a car that had a pre-existing debt, then I would be responsible for that debt. Yes. A car that you buy from a dealership doesn’t have the title of all their cars levied with debt; otherwise you could never register and title that car in your name. Not every car sold by your local Ford dealership is free and clear in the eyes of that dealerships creditors.
There are regulations for registering cars in NYS that I’m sure we’re all familiar with. You cannot register a car with a lien on the title unless you receive a letter from the creditor bank stating either A. the title is free and clear, B. you agree to take title with the preexisting lien and are responsible for the remaining debt.
The cars that are “impounded” are cars that were sold to other dealerships and do not yet have a personal owner… not individuals… at least from what ive read on other sources.
The guys was smart enough not to sell the cars at those UB3R rock bottom prices to an individual who would have called attention to the dealings
The way I read the article was unless they can prove that they were in on it, they would have the car returned to them.
The article did say:
“You can draw your own conclusions about whether someone getting a Lamborghini at $60,000 would get suspicious or not,” said Andrew Stolper, the assistant U.S. attorney handling the case.
this happens often to car dealers. Where it gets sticky is the floor plan does not finance the car but the dealer. It is illegal for them to go after the cars if the customers bought them on good faith. I’ve picked up numerous titles from floor plan co’s for cars that were sold to customers. I often deal with this when a car dealer goes oob and leaves customers in possession of vehicles with no ownership documents.
-the dealers who bought the cars for next to nothing are screwed…
-the individuals who paid 60K and have a clean title in hand with no evidence of fraud… own the car. Lambo can’t do shit about it. (I don’t want to get into details about floorplan)
-the guy who owned the dealerships… he better have purchased some lube with that money because he’s fucked.
So how many of these people will be selling these lambo’s and making a 250k profit? or will they keep them you think
i would assume since they bought a lambo they’re pretty well off, but that would be pretty awesome if you were regular joe with 70k and bought a brand new lambo
