The Lotus Cars Community banner
1 - 15 of 15 Posts

·
Registered
Joined
·
3,449 Posts
Discussion Starter · #1 ·
Looks like he was using money made from OC Lambo to pay off BH Lotus debts:


Orange County Lamborghini dealer to plead guilty to wire fraud
12:34 PM | March 11, 2009

An Orange County man, whose car dealerships accounted for about 5% of all Lamborghinis sold worldwide, has agreed to plead guilty to charges of felony wire fraud and faces a maximum penalty of 30 years in prison, authorities announced today.

Viken Keuylian, 45, of Laguna Hills, allegedly schemed Volkswagen Credit Inc. out of at least $12 million, according to a statement from the U.S. Department of Justice. The financing company gave him loans to purchase the luxury vehicles. He is scheduled to appear in federal court in Santa Ana on Monday.

Keuylian owned Lamborghini of Orange County and Lamborghini of Calabasas, which have now both closed. Under his agreement with VCI, Keuylian was loaned money to purchase cars that he put on his lots and for each car sold he "was obligated to pay back the money loaned to purchase that specific vehicle," authorities said.

Keuylian allegedly deceived VCI by telling them the cars he had already sold remained on his lots. But, in fact, he had misappropriated that money to pay-off other expenses, including business debts connected with a vineyard and a Lotus car dealership in Beverly Hills, authorities said. In one incident, authorities said Keuylian sold about 54 luxury vehicles in October 2008 for less than he owed VCI for each car. VCI loaned him $12,560,314 to purchase those cars, but Keuylian received only $8,163,275 from the sales, and authorities said none of the initial loan was paid back.

-- Ari. B. Bloomekatz

Orange County Lamborghini dealer to plead guilty to wire fraud | L.A. Now | Los Angeles Times


SoCal dealer charged with Lamborghini scam

Published: March 11, 2009 at 3:36 PM
SANTA ANA, Calif., March 11 (UPI) -- A high-end Southern California sports car dealer has been charged with bilking his financing company by not reporting sales, federal prosecutors said Wednesday.

Viken Keuylian, 45, Laguna Hills was charged Wednesday with wire fraud in connection with millions of dollars borrowed to pay for expensive Lamborghini cars that he sold out of his two Orange County lots.

The U.S. Attorney's office in Los Angeles said in a written statement that Keuylian, whose sales accounted for 5 percent of the Lamborghinis sold worldwide, would plead guilty in Santa Ana federal court on Monday.

Prosecutors said Keuylian allegedly borrowed millions of dollars from Volkswagen Credit Inc. to pay for the purchase of the cars he sold out of his dealerships in Orange County and Calabasas. The loan agreement required Keuylian to pay VCI back whenever he sold a car.

Keuylian was accused of selling cars and then failing to report the sale. He allegedly used the money from the loans to pay off unrelated business debts.

The FBI seized some 54 vehicles worth more than $12 million in the investigation, including some Bentleys and other high-end cars.

© 2009 United Press International, Inc. All Rights Reserved.

SoCal dealer charged with Lamborghini scam - UPI.com
 

·
Registered
Joined
·
817 Posts
Man, we got screwed by losing our local dealer...
 

·
Registered
Joined
·
2,414 Posts
Not very good judgement on the part of Lotus to abandoned South Bay Lotus and jump into bed with this guy.

I love Lotus, but that decision really hurt the so cal Lotus fans and proved to be a bad idea.

Don't jerk your good friends that will always support you.
 

·
Registered
Joined
·
35 Posts
Wow, sounds too much like the story that ended up with a wood-chipper.
 

·
Premium Member
Joined
·
29,081 Posts
Not very good judgement on the part of Lotus to abandoned South Bay Lotus and jump into bed with this guy.

I love Lotus, but that decision really hurt the so cal Lotus fans and proved to be a bad idea.

Don't jerk your good friends that will always support you.
But in their defense, this was really about the guy who was picked to run LCU (and was friends with the owner) and he was replaced by Arnie who worked to make things right again. The bad decision was fixed. And it is not that many at Lotus did not know a mistake was made. It just took time to get sorted.
 

·
Registered
Joined
·
3,449 Posts
Discussion Starter · #7 ·
If you scroll down on this plea deal, you'll see the 50 cars sold and what they were sold for. :eek:

http://ocbiz.freedomblogging.com/files/2009/03/lamborghini-scam-plea-agreement.pdf


VIN NUMBER YEAR MANU MODEL SALE DATE PURCHASER CASH RECEIVED VCI BALANCE
SCBCR63W44C 021527 2004 Bentley CONTINENTAL 10/24/2008 AVDAA auction $ 81,000 $ 105,720
SCBBR53W36C 034794 2006 Bentley CONTINENTAL 10/27/2008 Autosports $ 70,000 $ 122,660
SCBBR53W96C 036467 2006 Bentley CONTINENTAL 10/23/2008 RAA $ 89,425 $ 122,660
WDCYR71E68X 170906 2008 Mercedes G55 10/24/2008 Newport Collectibles $ 70,000 $ 88,540
WD8PE845675 189355 2007 Dodge SPRINTER 250 10/27/2008 Sunrise Auto $ 60,000 $ 90,585
ZHWBU16M83L A00676 2003 Lamborghini MURCIELAGO 10/16/2008 Arts Auto $ 105,000 $ 166,080
ZHWBU6S14L A01281 2008 Lamborghini MUR 10/17/2008 Newport Collectibles $ 110,000 $ 184,080
ZHWBU26S36L A01761 2006 Lamborghini MURCIELAGO 10/17/2008 Newport Collectibles $ 150,000 $ 264,480
ZHWBU16S56L A01898 2006 Lamborghini MURCIELAGO 10/18/2008 Arts Auto $ 149,500 $ 223,440
ZHWBU26S36L A01985 2006 Lamborghini MURCIELAGO 10/17/2008 Newport Collectibles $ 175,000 $ 269,040
ZHWBU26516L A02021 2006 Lamborghini MURCIELAGO 10/17/2008 Newport Collectibles $ 175,000 $ 264,480
ZHWBU37MS7L A02062 2007 Lamborghini MURCIELAGO 10/17/2008 Arts Auto $ 170,000 $ 288,960
ZHWBU37S28L A02715 2008 Lamborghini MURCIELAGO 10/23/2008 Arts Auto $ 230,000 $ 395,690
ZHWBU37SX8L A02798 2008 Lamborghini MURCIELAGO 10/24/2008 Lou Gadio $ 369,500 $ 348,572
ZHWBU37S38L A02870 2008 Lamborghini MURCIELAGO 10/20/2008 Allsup $ 344,570 $ 344,570
ZWBU47S08L A02895 2008 Lamborghini MURCIELAGO 10/17/2008 sold Exotic, undisposed $ 550,000 $ 462,305
ZHWBU47S08L A02914 2008 Lamborghini MURCIELAGO 10/23/2008 Autosports $ 110,000 $ 373,290
ZHWBU37598L A03151 2008 Lamborghini MURCIELAGO 10/15/2008 Irani $ 389,000 $ 357,580
ZHWBU37S68L A03222 2008 Lamborghini MURCIELAGO 10/23/2008 Newport Collectibles $ 200,000 $ 355,200
ZHWBU37S29L A03297 2009 Lamborghini MURCIELAGO 10/28/2008 Newport Collectibles $ 200,000 $ 368,350
ZHWGU12T06L A03336 2006 Lamborghini GALLARDO 10/23/2008 Eurocar Inc. $ 90,000 $ 150,480
ZHWGU12T66L A03535 2006 Lamboghini GALLARDO 10/18/2008 Arts Auto $ 105,000 $ 138,708
ZHWGU22T37L A04164 2007 Lamboghini GALLARDO SPY 10/23/2008 sold Kim, 10/23, $145,000 $ 145,000 $ 188,160
ZHWGU22TX7L A04288 2007 Lamboghini GALLARDO SPY 10/24/2008 Hollywood Auto $ 130,000 $ 184,800
ZHWGU22N88L A05796 2008 Lamboghini GALLARDO SPY 10/23/2008 Newport Collectibles $ 120,000 $ 211,060
ZHWGU43T48L A05836 2008 Lamboghini GALLARDO SUP 10/23/2008 Eurocar Inc. $ 140,000 $ 150,000
ZHWGU43T78L A06141 2008 Lamboghini GALLARDO 10/24/2008 AVDAA auction $ 140,000 $ 229,385
ZHWGU22T88L A06512 2008 Lamboghini GALLARDO SPY 10/15/2008 Gugasian $ 185,000 $ 223,235
ZHWGU43T38L A06718 2008 Lamboghini GALLARDO SUP 10/23/2008 Newport Collectibles $ 120,000 $ 231,065
ZHWGU22T88L A07014 2008 Lamboghini GALLARDO SPY 10/22/2008 Arts Auto $ 165,000 $ 219,300
ZHWGU22T68L A07223 2008 Lamboghini GALLARDO SPY 10/23/2008 Newport Collectibles $ 120,000 $ 222,930
ZHWGU22T78L A07537 2008 Lamboghini GALLARDO SPY 10/23/2008 Newport Collectibles $ 120,000 $ 226,060
ZHWGU22T98L A07541 2008 Lamboghini GALLARDO SPY 10/22/2008 Arts Auto $ 165,000 $ 222,795
ZHWGU54T39L A07891 2009 Lamboghini GALLARDO 560 10/23/2008 Newport Collectibles $ 120,000 $ 224,595
VIN NUMBER YEAR MANU MODEL SALE DATE PURCHASER CASH RECEIVED VCI BALANCE
ZHWGU54T89L A08017 2009 Lamboghini GALLARDO 560 10/27/2008 Newport Collectibles $ 120,000 $ 229,519
SCBCR63W95C 024893 2005 Bentley CONTINENTAL 10/27/2008 Autosports $ 70,000 $ 115,060
WDDNG71X67A 098502 2007 Mercedes S550 10/27/2008 Autosports $ 50,000 $ 68,000
ZFFEW59A470 152419 2007 Ferrari 430 F430 SPI 10/17/2008 Newport Collectibles $ 185,000 $ 255,360
ZHWBU16S24L A00978 2004 Lamboghini MURCIELAGO 10/17/2008 Newport Collectibles $ 115,000 $ 187,840
ZHWBU16S16L A01753 2006 Lamboghini MURCIELAGO 10/17/2008 Newport Collectibles $ 130,000 $ 230,720
ZHWBU47S37L A02369 2007 Lamboghini MURCIELAGO 10/17/2008 Newport Collectibles $ 200,000 $ 394,680
ZHWBU47S77L A02388 2007 Lamboghini MURCIELAGO 10/17/2008 Newport Collectibles $ 200,000 $ 340,480
ZHWBU37S68L A02717 2008 Lamboghini MURCIELAGO 10/17/2008 Newport Collectibles $ 200,000 $ 343,505
ZHWBU37S68L A03088 2008 Lamboghini MURCIELAGO 10/23/2008 Levon Gugasian (Newport) $ 90,000 $ 336,320
ZHWBU47S69L A03471 2009 Lamboghini LP640 10/23/2008 Levon Gugasian (Newport) $ 60,430 $ 387,720
ZHWGU12T86L A03665 2006 Lamboghini GALLARDO 10/20/2008 Eurocar Inc. $ 117,000 $ 154,120
ZHWGU22T76L A03677 2006 Lamboghini GALLARDO SPY 10/24/2008 AVDAA auction $ 105,000 $ 182,400
ZHWGU22T06L A04069 2006 Lamboghini GALLARDO SPY 10/17/2008 AVDAA auction $ 126,500 $ 182,400
ZHWGU22T97L A04590 2007 Lamboghini GALLARDO SPY 10/20/2008 AVDAA auction $ 145,000 $ 185,460
ZHWGU22T48L A06538 2008 Lamboghini GALLARDO SPY 10/23/2008 Eurocar Inc. $ 140,000 $ 223,835
ZHWGU22T98L A07409 2008 Lamboghini GALLARDO SPY 10/23/2008 Newport Collectibles $ 120,000 $ 223,100
ZHWGU22T28L A07428 2008 Lamboghini GALLARDO SPY 10/23/2008 Newport Collectibles $ 120,000 $ 223,420
ZHWGU22T18L A07436 2008 Lamboghini GALLARDO SPY 10/22/2008 Arts Auto $ 165,000 $ 223,840
SAJ0A44B275 B03603 2007 Jaguar XK 10/24/2008 AVDAA auction $ 41,350 $ 53,680
Totals $ 8,163,275 $ 1 2,560,314

.
 

·
Registered
Joined
·
1,999 Posts
I think the other dealerships are involved in this scam. Take a look. Newport Collectibles, Art Auto. I guarantee that it gets sold to these dealers, then these dealers sell them to public, and under the table, the profit is split into two...
 

·
Registered
Joined
·
2,414 Posts
But in their defense, this was really about the guy who was picked to run LCU (and was friends with the owner) and he was replaced by Arnie who worked to make things right again. The bad decision was fixed. And it is not that many at Lotus did not know a mistake was made. It just took time to get sorted.

I agree, but in the end Lotus still has to take the heat. It was a bad decision, but whoever put the guy in charge "to run LCU" should be held accountable.

I'm not trying to grind an axe with Lotus, but hasn't poor dealer decisions plagued them for years?

They really had something special in SoCal and it's senior managements job to recognize this and listen to the troops. Lotus has still not recovered from a dealership perspective from the loss of South Bay.

From a customer perspective, everything was working. Good sales force, great location and facility, and the expertise of Qais.
 

·
Premium Member
Joined
·
29,081 Posts
Can't disagree with any of that. But the guy who put the guy in charge is also gone. Mike Kimberly was brought back at Lotus and Arnie was put back at LCU.

I know Arnie really feels bad about the South Bay thing.
 

·
Registered
Joined
·
426 Posts
Can't disagree with any of that. But the guy who put the guy in charge is also gone. Mike Kimberly was brought back at Lotus and Arnie was put back at LCU.

I know Arnie really feels bad about the South Bay thing.
Sorry to have to disagree with you Randy, but Mike Kimberly put the guy in charge who made the deal to bring in Lotus of Beverly Hills. This led directly to South Bay deciding to give up their Lotus franchise.

I'm glad things are starting to work out but the consequences of the decisions taken during those times are still being felt at LCU and by Lotus customers. I'm very glad Arnie is back at LCU and I hope they do well. I just wish I were there to be part of it.
 

·
shay2nak
Joined
·
25,134 Posts
I guess Beverly Hills sounds better than South Bay.
 

·
Premium Member
Joined
·
29,081 Posts
Sorry to have to disagree with you Randy, but Mike Kimberly put the guy in charge who made the deal to bring in Lotus of Beverly Hills. This led directly to South Bay deciding to give up their Lotus franchise.

I'm glad things are starting to work out but the consequences of the decisions taken during those times are still being felt at LCU and by Lotus customers. I'm very glad Arnie is back at LCU and I hope they do well. I just wish I were there to be part of it.
Oh. I thought it happened before Kimberly. But I am losing track of the people. I do remember some of the guys at Hethel saying that they figured that the LCU guy must have compromising pics.
 

·
Registered
Joined
·
426 Posts
Oh. I thought it happened before Kimberly. But I am losing track of the people. I do remember some of the guys at Hethel saying that they figured that the LCU guy must have compromising pics.
Yeah it hard to keep track. There have been a couple, umm ... how do I say this politely, inappropriate leaders at LCU since the Elise came to the U.S. I'm glad the right guy is back running things. I wish I could have held on until he made his return.
 
1 - 15 of 15 Posts
Top