Lawsuits, Investigations After 90 Luxury Cars Go Missing from Bankrupt Dealership

Lawsuits and criminal charges erupted after a luxury car dealer in South Florida filed for bankruptcy and as many as 90 Lamborghini, Ferrari and other expensive cars disappeared from the dealership.

At least nine people have filed lawsuits in Broward and Palm Beach counties, claiming they bought the vehicles but never delivered them, or that the titles are missing and the property is in dispute, the South Florida Sun Sentinel reported.

Boca Raton police have also launched at least 26 investigations into alleged car fraud after Excell Auto Group declared bankruptcy in April. The business and others were owned by Scott and Kristen Zankl, the newspaper said.

Derek Stevens, who is suing two businesses involved in the case, said he lost a 2013 Ferrari 458 Spider that he left for shipment to one of Zankles’ businesses, Karma of Palm Beach, according to Sun Sentinel. Karma reportedly told Stevens that the car was taken from the company’s landlord in a dispute over outstanding loans. Karma has agreed to pay Stevens $ 230,000 if she sells the vehicle, according to Stevens’ case.

“Some people don’t regret having such a car,” said Stevens lawyer Darin Melinger. “Even so, the situation is sad.”

Plaintiffs will likely have to wait months or years before disputes are settled while the insolvency court screens out all creditors who may be owed money from the dealership and related businesses.

The Excell Auto Group’s bankruptcy petition estimates that it owes $ 10 million to $ 50 million to 49 creditors. Assets available for distribution to unsecured creditors range from $ 0 to $ 50,000, the file said. The court asked the owners of the car dealership to provide a list of all places for missing cars.

Topics
Litigation

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