CNC Motors Fraud Investigation

[gqchris]

WOW, I always thought this place was a reputable dealer. Here we go again.......its the thing nightmares are made of. Funny thing is I was actually looking ta this exact F430 when it was there!
@ChumpChange any inside scoop?

This sure sounds familiar to some OSM and Tim in the boating world.
This video is worth the watch!

 

[Taboma]

WOW, I always thought this place was a reputable dealer. Here we go again.......its the thing nightmares are made of. Funny thing is I was actually looking ta this exact F430 when it was there!
@ChumpChange any inside scoop?

This sure sounds familiar to some OSM and Tim in the boating world.
This video is worth the watch!

I had my eyes on a vette grand sport they've had for awhile too. Seemed like a classy place.

 

[Done-it-again]

Yikes. See the place all the time on the 210. They sure upgraded from the old location in Ontario.

 

[gqchris]

I had my eyes on a vette grand sport they've had for awhile too. Seemed like a classy place.

Yea in the video it says the dealership owner was blaming Covid for the bounced check.

But the exotic car market has been on FIRE since the pandemic. People are scooping things up for top dollar left and right.

 

[wzuber]

I've always marveled a bit at the vehicles I see there driving by on my way to customers homes. Always wanted to stop in and check it out. I've always wondered a bit how they went from that location in Ontario to building that big facility up there? I guess we have a bit better idea of how they may have accomplished that......fraud....go figure.

 

[monkeyswrench]

Wasn't there a high end place in OC that had some issues in the late 90s early 2000s? I seem to remember there being all kinds of issues with money laundering or something to the effect. If made it a bitch to buy cars from private owners, as they were worried about the banking implications.

As a disclaimer, I wasn't rolling that fat. My employer was, and some of my customers.

 

[gqchris]

Wasn't there a high end place in OC that had some issues in the late 90s early 2000s? I seem to remember there being all kinds of issues with money laundering or something to the effect. If made it a bitch to buy cars from private owners, as they were worried about the banking implications.

As a disclaimer, I wasn't rolling that fat. My employer was, and some of my customers.

MW i think you are remembering the Lamborghini of Newport debacle where he fucked the flooring company. Magic did the same.

Lamborghini Orange County Owner To Plead Guilty On Fraud Charges

We reported in January Lamborghini Orange County's owner, Vik Keuylian, was wanted for defrauding Volkswagen Credit Inc. for $12 Million. He has agreed to plead guilty, potentially landing him in jail for 30 years.

jalopnik.com

 

[monkeyswrench]

MW i think you are remembering the Lamborghini of Newport debacle where he fucked the flooring company. Magic did the same.

Lamborghini Orange County Owner To Plead Guilty On Fraud Charges

We reported in January Lamborghini Orange County's owner, Vik Keuylian, was wanted for defrauding Volkswagen Credit Inc. for $12 Million. He has agreed to plead guilty, potentially landing him in jail for 30 years.

jalopnik.com

Yep, that's it. I remembered it was big money. Way different than my circle. It hit the hot rod world indirectly, because, at the time, they were building lots of 100k+ cars. Guys were gun-shy about cash tranactions, as the banks were really looking hard. Between that and the the new terrorism laws around the same time, stuff got kind of goofy.

 

[Jimmyv]

Just wow! We’re local and have used CNC.

We sold our Mercedes Sprinter moto van through CNC on consignment a year ago. They sold it for what we wanted and in a reasonable timeframe, but they did fail to pay us inside the 20 day contractual agreement. My wife made multiple trips to the dealer in-person to chase down a check, which we did eventually receive.

I’ve noticed their inventory is lower than usual, things must be happening over there...

 

[gqchris]

Just wow! We’re local and have used CNC.

We sold our Mercedes Sprinter moto van through CNC on consignment a year ago. They sold it for what we wanted and in a reasonable timeframe, but they did fail to pay us inside the 20 day contractual agreement. My wife made multiple trips to the dealer in-person to chase down a check, which we did eventually receive.

I’ve noticed their inventory is lower than usual, things must be happening over there...

You should never have to chase a check down. Thats a red flag for sure. When i worked at LBYS, when we got paid, the seller got paid. All thru escrow.

These companies keep comingling customers funds and thats straight bullshit. Hate to hear these stories.

 

[attitude]

I’ve been following a page on Instagram that has been outing CNC over the past week or so, Apparently their building is for sale as well as the owners house. People are saying he is attempting to cash out and flee.

 

[Done-it-again]

I’ve been following a page on Instagram that has been outing CNC over the past week or so, Apparently their building is for sale as well as the owners house. People are saying he is attempting to cash out and flee.

Not good. I would always check their inventory for Porches, always thought they were straight.

sometime wealth/money can cloud your judgment.

 

[caribbean20]

Just love these big shot wannabes. Guy in the video “the way you buy these exotic cars is you use the bank’s money.”

Uh no. Wannabe a big shot, you use your own money and write 1 check, otherwise maybe just stick with that Camry.

 

[rrrr]

Just love these big shot wannabes. Guy in the video “the way you buy these exotic cars is you use the bank’s money.”

Uh no. Wannabe a big shot, you use your own money and write 1 check, otherwise maybe just stick with that Camry.

No. If the guy has investments that return more than the carrying cost of the car note, then he's using that return to pay for the car and pocketing the remainder. It's a common tactic.

 

[Mikes56]

I bought my F430 from them a year ago. The transaction went smooth, with one hiccup because COVID hit the following week. My trade in didn’t get paid off on time, and I had to make an extra payment after I traded it in. They sent me a check to cover that amount.
I hope they are able to make everything right. Apparently the owner worked himself up from being the carwash boy at a car dealership to the owner of CNC.

 

[caribbean20]

No. If the guy has investments that return more than the carrying cost of the car note, then he's using that return to pay for the car and pocketing the remainder. It's a common tactic.

I’m well aware of debt arbitrage. The problem is those investments you are making with your own money (and my point being, he probably didn’t have the scratch to pay for that car in the first place) are not risk free, but that loan will be there come hell or high water.

Borrowing money to buy an exotic car just seems to be a risky proposition to an old school guy like me. To each his own, just blowing some shit on the internet today

 

[bonesfab]

I have always been amazed how these places stay in business. The monthly nut just to keep the doors open is massive. Some serious volume has to go through just to pay the bills let alone make a profit. I drove by that place a few months ago and was impressed with the size but this was the first thing that crossed my mind. Rent, insurance, payroll. Just the rent on that place is big bucks.

 

[Done-it-again]

Not when the city gives them 5 years free lease. Guess who will be gone in 5 years and 1 day?

Really how can that happen? City built it to suit and owns the property?

 

[havasujeeper]

So I've been told.

 

[ChumpChange]

Not when the city gives them 5 years free lease. Guess who will be gone in 5 years and 1 day?

Where do people come up with this stuff? Owner of CNC bought the land, built the building, and pay the mortgage on building. It’s all public record.

 

[ChumpChange]

WOW, I always thought this place was a reputable dealer. Here we go again.......its the thing nightmares are made of. Funny thing is I was actually looking ta this exact F430 when it was there!
@ChumpChange any inside scoop?

This sure sounds familiar to some OSM and Tim in the boating world.
This video is worth the watch!

Looks like this guy has another video coming out this morning interviewing Clay.

 

[Raffit78]

Where do people come up with this stuff? Owner of CNC bought the land, built the building, and pay the mortgage on building. It’s all public record.

Public record also shows Rancho pacific commercial inc as a new owner as of 2018

Sometimes public information isn’t accurate.


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[RitcheyRch]

Sure has a nice inventory

New, Used Cars at CNC Motors Inc. Serving Upland, CA, Inventory

Serving Upland, California (CA), CNC Motors Inc. is the place to purchase your next car. View photos and details of our entire inventory.

www.cncexotics.com

 

[bonesfab]

Where do people come up with this stuff? Owner of CNC bought the land, built the building, and pay the mortgage on building. It’s all public record.

Then it is even worse as he has to pay property taxes on that also. Like I said the monthly nut is staggering.

 

[ChumpChange]

Public record also shows Rancho pacific commercial inc as a new owner as of 2018

Sometimes public information isn’t accurate.


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That was the seller. Sometimes you have to actually request public records instead of looking at free sites. Free sites are not accurate recorded public records.

 

[Done-it-again]

Then it is even worse as he has to pay property taxes on that also. Like I said the monthly nut is staggering.

I cant imagine either the cost of that building. With commerical building at $250+ per sft and leases at .85-.95 pst. It’s a big monthly.

 

[Taboma]

Well, the Yelp reviews are certainly entertaining

 

[Joker]

Looks like this guy has another video coming out this morning interviewing Clay.

Shows it starting in 12 minutes

 

[Brokeboatin221]

There’s nothing to see here, the guy overextended himself with overhead and probably had a bad year with covid and boom bam. Started floating stuff to pay other stuff and now he’s up shit creek without a paddle. I hope he finds a way to make good on it and I hope it works out for all that’s involved. Sucks when stuff like this happens. Im sure he worked hard to get where he is. Car business is tough.

 

[LuauLounge]

I cant imagine either the cost of that building. With commerical building at $250+ per sft and leases at .85-.95 pst. It’s a big monthly.

Building is for sale at 16,500,000

 

[Icky]

Building is for sale at 16,500,000

Where do u see that?

 

[gqchris]

If you guys want to see Clays version.

 

[gqchris]

I’ve been following a page on Instagram that has been outing CNC over the past week or so, Apparently their building is for sale as well as the owners house. People are saying he is attempting to cash out and flee.

Whats that page bro? Curious to read as well.

 

[bonesfab]

Building is for sale at 16,500,000

If my knowledge is correct that’s about 3000. A week in property tax on that building.

 

[grumpy88]

Is it possible the guy is going to sell the building to make good to anybody he owes ? Maybe he just f up and couldnt save it all before it all went viral ?

 

[Jimmyv]

I think he handled that quite well, all things considered. I’m not sure how much COVID could be to blame, but may have been the catalyst event to funding problems after growing big and fast over the past few years. Regardless, I hope he can make all parties whole.

 

[zhandfull]

I think he handled that quite well, all things considered. I’m not sure how much COVID could be to blame, but may have been the catalyst event to funding problems after growing big and fast over the past few years. Regardless, I hope he can make all parties whole.

Agreed for the most part he handled the interview pretty well. But as I tell my kids actions speak louder than words. Seems like a nice enough guy. Hope he’s able to pull a rabbit out of the hat and at least make everyone whole.

 

[ChumpChange]

I’ve been following a page on Instagram that has been outing CNC over the past week or so, Apparently their building is for sale as well as the owners house. People are saying he is attempting to cash out and flee.

Unfortunately BB has also deleted any comment with any semblance of the truth.

Property closed on Friday and people got paid. Paying people off is a poor way to flee the Country. And some of those people were unsecured/consigned creditors.

You know the saying that’s there’s no honor amongst thieves? One of the biggest screamers on that site about CNC is notorious in the boating/yacht world. People just don’t know who The Captain really is.

 

[attitude]

Whats that page bro? Curious to read as well.

It’s called ballerbusters on Instagram, not all the posts are about CNC so you will need to scroll through a little bit.

 

[Done-it-again]

Felt that his interview was genuine. Hope it all works out for all.

 

[JayBreww]

Felt that his interview was genuine. Hope it all works out for all.

Bet those still waiting on checks feel the same way.


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[LuauLounge]

Where do u see that?

Here’s the listing info

Commercial Properties for Sale | Marcus & Millichap

Search Marcus & Millichap's exclusive inventory of commercial real estate investment properties. More than any other firm.

www.marcusmillichap.com

 

[bonesfab]

Even on a deal thats 30-40k a month in rent or payment. Big and impressive but fuck that.

 

[Joker]

After watching the interviews, there’s no way this business survives. It’s a shame as it seems as if this guy originally had good intentions but he got in too deep. I truly hope everyone that got sucked in while he was trying to survive gets their money.

 

[rivermobster]

Even on a deal thats 30-40k a month in rent or payment. Big and impressive but fuck that.

You know you want that building...

 

[Chili Palmer]

I stopped by there one time looking at a BMW M6 they had advertised and was truly amazed at all the Ferraris that were in that building. I made the comment to the guy that he's got the used Ferrari market cornered and he said that they were the largest used Ferrari dealer in the world. After walking in that building I believed it. As we left I told my wife just imagine the cost for all these cars, granted that most were probably consignment, but still. We passed by there on the 210 freeway yesterday and it looked like they were all closed up.

 

[bonesfab]

You know you want that building...

If it was rent and tax free, Yes. Fuck that otherwise. no thank you for that headache.

 

[LuauLounge]

My simple math, it cost him north of $6,000 a day to open the front door every morning.

 

[ChiliPepperGarage]

I had a strange experience with them several years ago, They had a 29' Fountain on consignment that I looked at. It was a nice clean boat at a fair price. I had some questions about it but they were not boat guys and knew really nothing about it but had the owner come down and meet me there. It took probably an hour for him to show up. We discussed things and I decided to think about the purchase.

The price was fair but not a bargain and they were not willing to negotiate so I decided for the money I'd rather have a larger boat. Because it was such a nice boat I posted a thread about it on OSO with lots of photos talking it up. In my description I stated that the dealer weren't boat guys and didn't know anything about it but if anyone was interested I would be willing to help answer questions or take photos. I was contacted by a member that was interested. He called me and we talked about the boat for some time and I gave him my opinion on everything he asked. The guy then contacted the dealer and ended up buying the boat and had it shipped to him on the east coast.

Here's the weird part. The sales guy sends me a text or email (I don't remember which) saying that he didn't appreciate what I said about them. I asked him if he could clarify thinking maybe the buyer told them I said something that I hadn't. He said he didn't like that I had posted that they didn't know anything about boats. My reply was, "Well, do you?". I found a buyer for the boat for you that you knew nothing about and wasn't your normal product. You had no idea how to market the boat and I got a buyer for you within a week of looking at it. You should be thanking me. I never heard back from them but the experience made for a bad opinion of them. It was disappointing because the place was like a candy store for a car guy.

 

[Christopher Lucero]

it was excellent to see both sides of the story. Thank you.
It seems to come down to this: most of the time economists talk about capitalism on a macro scale, as if that is the only place it exists.

BUT...The essence of every transaction is trust. Lose trust and the game is corrupted.

My grandson and I went to see "Avengers:Endgame" a few years back. As we walked out, he asked me (he was 13 at the time) "Grandpa, what is the most powerful force?" I answered "Trust"

He said that he meant forces like gravity or fire or... he seemed frustrated by my philosophical answer, so he then asked "Ok, then what it s the second most powerful force".

I answered "Forgiveness".

To get through this situation, both sides should ponder those key parts of living with each other, and trading with each other.