A $700,000 Italian sports car that originally was brought into the United States in 2001 for maintenance was seized today in Orange County as part of a federal investigation into violations of environmental and transportation safety regulations.
Agents with the U.S. Immigration and Customs Enforcement found the 1994 Cizeta V16 sports car at the Family Classic Cars showroom in San Juan Capistrano, eight years after an agreement specified that the car would be sent back to where it came following repairs.
The car is one of fewer than a dozen such vehicles produced by automotive engineer Claudio Zampoli in a joint venture with music composer Giorgio Moroder, said Immigration and Customs Enforcement spokeswoman Virginia Kice.
The government alleges that Zampoli and his agent violated U.S. customs and environmental laws, Kice said They allegedly claimed the vehicle was worth $125,000, even though the car originally sold new for approximately $600,000.
In addition, Zampoli and his representative failed to export the vehicle within a reasonable period of time, according to the allegation.
“Make no mistake, the illegal importation of gray market vehicles like this is not just a technical violation,” said Miguel Unzueta, special agent in charge for the customs agency's Office of Investigations in Los Angeles. “Cars that don’t meet U.S. standards are outlawed for a reason. These vehicles can pose a real threat to public health and safety.”
The car was loaded onto a flatbed truck and taken to a secure government storage facility, Kice said.
The Cizeta will remain in storage while authorities seek to have it forfeited to the federal government. If the vehicle is forfeited, it will be offered for sale at a public auction. Since the vehicle does not meet U.S. environmental and safety standards, any domestic buyer would have to export the car following its purchase.
Source
Thursday, January 28, 2010
Friday, January 15, 2010
Car buyer alleges fraud in Kruse-run phone sale
A Virginia man has sued the Auburn Cord Duesenberg Museum and an embattled board member over the September sale of a multimillion-dollar 1930 Duesenberg automobile.
James Scott alleges in the federal lawsuit that museum board member Timothy S. Durham and others who had a financial interest in the sale of the car drove up the price during bidding and then split the profits of the sale. Scott, who filed the suit last week in U.S. District Court in Fort Wayne, won the car with a bid of $2.9 million
Durham is an Indianapolis financial adviser whose offices were raided by FBI agents two days before Thanksgiving.
Also named as defendants in the lawsuit are Missouri collector car dealer Mark Hyman; Donald D. Lyons, of Dowagiac, Mich.; Kruse International and the Auburn museum.
Before the Sept. 3 auction, Scott visited the museum and previewed the 1930 Duesenberg put up for consignment by a group of sellers: Durham, Hyman, Lyons and the Lyons Family Trust. Scott participated in the auction by telephone.
The auctioneer for the museum’s auction used Kruse’s license to conduct the auction, Scott’s attorney said.
An employee of the museum stayed on the telephone with Scott and transmitted bids to and from him.
Hyman opened the bidding with an offer of about $500,000, according to court documents.
As the auction moved past $850,000, the remaining bids were between Scott and Hyman. Scott alleges that Hyman conferred about bids often with Lyons, who was seated next to him.
Scott said no one disclosed that the group of sellers reserved the right to bid or that they were in fact offering bids on the car. That meant that the price of the car was artificially inflated by those who had a financial interest in getting more money for the car, according to court documents.
After Scott transferred more than $3.1 million to the museum’s bank account a few days later, the money was divided up and distributed to Hyman, Lyons and the museum, with Durham’s knowledge.
Scott has yet to receive the title for the vehicle, according to court documents.
In his civil lawsuit alleging violation of Indiana law, fraud, criminal conversion and negligence, Scott is seeking $3.1 million, interest and the right to retain the automobile, according to court documents.
Source
James Scott alleges in the federal lawsuit that museum board member Timothy S. Durham and others who had a financial interest in the sale of the car drove up the price during bidding and then split the profits of the sale. Scott, who filed the suit last week in U.S. District Court in Fort Wayne, won the car with a bid of $2.9 million
Durham is an Indianapolis financial adviser whose offices were raided by FBI agents two days before Thanksgiving.
Also named as defendants in the lawsuit are Missouri collector car dealer Mark Hyman; Donald D. Lyons, of Dowagiac, Mich.; Kruse International and the Auburn museum.
Before the Sept. 3 auction, Scott visited the museum and previewed the 1930 Duesenberg put up for consignment by a group of sellers: Durham, Hyman, Lyons and the Lyons Family Trust. Scott participated in the auction by telephone.
The auctioneer for the museum’s auction used Kruse’s license to conduct the auction, Scott’s attorney said.
An employee of the museum stayed on the telephone with Scott and transmitted bids to and from him.
Hyman opened the bidding with an offer of about $500,000, according to court documents.
As the auction moved past $850,000, the remaining bids were between Scott and Hyman. Scott alleges that Hyman conferred about bids often with Lyons, who was seated next to him.
Scott said no one disclosed that the group of sellers reserved the right to bid or that they were in fact offering bids on the car. That meant that the price of the car was artificially inflated by those who had a financial interest in getting more money for the car, according to court documents.
After Scott transferred more than $3.1 million to the museum’s bank account a few days later, the money was divided up and distributed to Hyman, Lyons and the museum, with Durham’s knowledge.
Scott has yet to receive the title for the vehicle, according to court documents.
In his civil lawsuit alleging violation of Indiana law, fraud, criminal conversion and negligence, Scott is seeking $3.1 million, interest and the right to retain the automobile, according to court documents.
Source
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