California Dealer Pleads Guilty to Federal Fraud Charges
An Orange County, Calif., man who owned two Lamborghini dealerships that sold up to 5 percent of all Lamborghinis sold in the world has agreed to plead guilty in a scheme to bilk his floorplanning provider out of millions of dollars.
SANTA ANA, Calif. – An Orange County man who
owned two Lamborghini dealerships that sold up to 5 percent of all
Lamborghinis sold in the world has agreed to plead guilty in a scheme
to bilk his floorplanning provider out of millions of dollars.
Viken Keuylian, 45, of Laguna Hills, was charged with wire fraud in a criminal information filed this morning in United States District Court. In a plea agreement also filed this morning, Keuylian agreed to plead guilty to the charge, which carries a statutory maximum penalty of 30 years in federal prison.
Keuylian was the owner of two recently closed automobile dealerships: Platinum Motors LLC (d.b.a. Lamborghini of Orange County) and Calabasas EuroAutoGroup LLC (d.b.a Lamborghini of Calabasas). Most of the Lamborghinis at Keuylian's dealerships were purchased using money borrowed from Volkswagen Credit Inc. (VCI). Under the loan agreement with VCI, Keuylian's dealerships borrowed money from VCI to purchase cars, and, as each car was sold, Keuylian was obligated to pay back the money loaned to purchase that specific vehicle. While the cars were at the dealerships, VCI maintained a security interest in the unsold cars.
As part of the scheme, Keuylian and others deceived VCI into believing that certain cars remained on his lots, when in fact the vehicles had been sold and the proceeds had been misappropriated to pay Keuylian's other business debts, including debts associated with his vineyard, a commercial building on Pacific Coast Highway in Newport Beach, Calif. and his Lotus dealership in Beverly Hills, Calif.
In October 2008, Keuylian sold at least 54 vehicles – mostly Lamborghinis, but also several Bentleys and other high-end cars – for less than he owed VCI for each car. Keuylian used the proceeds from these sales to make some payments to VCI to pay back money he had already misappropriated. In relation to the 54 cars that Keuylian sold in October 2008, VCI had loaned him $12,560,314 to purchase the vehicles, but Keuylian received only $8,163,275 from the sales of these cars. None of the funds paid for the 54 cars were used to pay back VCI for the money it had loaned to purchase those cars.
In connection with this investigation, the FBI has taken into custody 13 Lamborghinis and an Audi that Keuylian had sold to end-users in relation to the scheme.
Keuylian is expected to make his initial court appearance in federal court in Santa Ana on March 16.
The case against Keuylian is a product of an investigation by the Federal Bureau of Investigation.
More Compliance

Line 1 Is Not a Junk Drawer
Rolling products into the cash price — even if the bank told you to — misrepresents the vehicle’s value and runs afoul of four federal laws.
Read More →
Dueling Banjos in the Car Biz
Reports and accounts at variance show auto dealers’ trust profiles have risen in many consumers’ minds but that there remains a need for greater transparency by some.
Read More →
NADA and the Miracle on 34th Street
Automotive dealers should follow the National Automobile Dealers Association's consumer-friendly guidelines in order to minimize their legal risks.
Read More →
Another Look at a Recent Data Breach
Get caught up on the most pressing legal and regulatory matters facing dealers and F&I professionals, including data security, shotgun purchases, and inconsistent payment quotes.
Read More →

The Best Thing a Dealer Can Do to Avoid Legal Problems
Citing the issue is a strategy borrowed from the legal field itself.
Read More →
Fines of the Times
Civil penalties for noncompliance with federal auto retail and finance rules and regulations can add up quickly. Use this checklist to cover your bases.
Read More →
Goodwill and Car Dealers
A dealer goodwill tale is a cautionary tale worth paying attention to.
Read More →
The Regulatory Empire Is Striking Back
President Trump - entropist and corporate disruptor in consumer law
Read More →
