What to Know
A black Ferrari F40 is just one of the cars forfeited as part of a plea agreement in a federal fraud case
The car and other seized items will be auctioned through Feb. 11
Other cars up for auction include Corvettes, a 1970 Plymouth Roadrunner coupe and several vintage Chevys
A Ferrari F40, one of the most coveted supercars ever built, is the one of the high-end cars seized in a federal fraud investigation that will be up for auction this week.
The menacing black 1991 Ferrari, a few 1960s Corvettes, vintage Chevys, and a 1970 Plymouth Roadrunner coupe are some of the items that were forfeited as part of a long-running investigation into a Los Angeles parking lot operator. The operator pleaded guilty in 2018 to defrauding the U.S. Department of Veterans Affairs out of more than $13 million.
Wealth acquired from the scheme allowed for the purchase of condos in Santa Monica with an estimated value of $7 million, a Cigarette racing boat and cars, eight of which will be part of the auction. As part of a plea agreement, all assets acquired through the scheme were forfeited and the operator was required to pay about $12.6 million in restitution.
Bidding began Jan. 28 and continues through Feb. 11.
Bids for the Ferrari, which represents a defining moment in the storied automakers’ history, was up to $503,000 on Tuesday morning. With five days to go in the auction, it’s likely to go much higher. A F40 topped $1.7 million a 2018 auction in Monterey.
The seized Ferrari was restored on the Discovery show “Fast N’ Loud.”
At the time of his arrest, investigators seized more than $213,000 from the parking lot operator’s residence, cash that the U.S. Marshals office said was skimmed from VA parking lots. Bank and brokerage accounts had more money, according to investigators.
As part of the 15-year scheme, the Department of Veteran’s Affairs was defrauded out of money that should have been used to pay for parking lot operations on the agency’s Los Angeles medical campuses. The scam also resulted in $300,000 in bribes to a VA contracting officer.
The majority of the illegal activity occurred at the West Los Angeles VA Medical Center near Westwood. It included parking for UCLA baseball games, the Wadsworth and Brentwood theaters, and the PGA golf tournament at the nearby Riviera Country Club.
It’s estimated the operator under-reported about $4.6 million in revenue and an unknown amount of cash collected at parking lots during the scheme.