Top News

Calif. Dealer Sentenced to 13 Years for Embezzlement

June 30, 2015

SANTA ANA, Calif. — The former owner and operator of Costa Mesa Bellagio Motors, a car dealership that specialized in buying and selling high-end luxury vehicles, was sentenced on June 29 to 13 years in state prison for embezzling over $2 million from unsuspecting customers.

Farhad Ebadat of Huntington Beach, Calif., pleaded guilty to 16 felony counts of embezzlement by fiduciary of trust, 13 felony counts of money laundering, and 11 felony counts of grand theft by false pretenses with sentencing enhancements and allegations for aggravated white collar crime over $500,000 and $1.3 million. He was also ordered to pay $2,078,167.48 in restitution.

From 2009 to 2012, Ebadat owned and operated Costa Mesa Bellagio Motors, a car dealership that specialized in buying and selling high-end luxury vehicles from Audi, BMW, Ferrari, Lamborghini, Lexus, Lotus, Maserati, Porsche and Rolls Royce. During this time, Ebadat defrauded victims who wanted to sell their high-end vehicles by falsely claiming he would sell their cars on consignment, pay the owners and transfer the car titles to the purchasers. The defendant sold cars worth $25,000 to $225,000 on consignment and then diverted the payments he received to his own personal accounts.

Ebadat defrauded buyers who paid for the vehicles in full but were unable to obtain legal car titles because the owners holding the titles had not been paid. Ebadat did not deliver some of the purchased vehicles to customers.

Costa Mesa Police Department began investigating the case and turned it over to Orange County Auto Theft Task Force (OCATT), a multi-jurisdictional law enforcement program that investigates, arrests, and prosecutes professional and career criminals responsible for Orange County vehicle thefts.

After the investigation of Bellagio Motors began in 2012, the defendant abruptly closed his business, vacated the premises, and moved from his home in Huntington Beach to a rental home in Bermuda Dunes. Ebadat then emptied his bank accounts by transferring his funds to various other bank accounts.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  



J.D. Power Forecasts Strongest June Sales in a Decade

New-vehicle retail sales and the retail seasonally adjusted annualized selling rate are expected to be at their highest levels for the month of June since 2005, according to a monthly sales forecast by J.D. Power and LMC Automotive.