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The latest news reports in America state that the number of fraud cases in car restoration is rising. After COVID, scammers began to target classic car collectors, relying on fake online reviews and fancy websites to lure in their victims. According to Motorious and Yahoo Auto, there is a trend that has car enthusiasts on high alert because restoration schemes are on the rise. Even federal law enforcement is now paying attention to consumer complaints.

“What was once a domain of automotive passion and craftsmanship has morphed into fertile ground for criminals who exploit the emotional and financial investment collectors have in vintage vehicles,” Elizabeth Puckett points out in her Yahoo Auto article.

Famous Cases: Rittersbach and Healey Werks Corp

In 2023, Clark P. Rittersbach, who operated Concours Classic Motor Cars in Macedon, New York, was charged with wire fraud by U.S. Attorney Trini E. Ross. Rittersbach allegedly deceived his clients to the tune of $1.15 million, claiming to restore their vintage cars but either neglecting to complete the work or not doing it at all. These deceptive practices stretched beyond local or even national boundaries, as Rittersbach targeted international clients as well.

But it’s not just Rittersbach; other enterprises are also guilty. Last year in Lawton, Iowa, The Healey Werks Corp faced a $7 million judgment for breaching an agreement related to the restoration and sale of three classic cars.

Defenders Northwest Case: Land Rover Defender 130 Scam

Recently, a Land Rover restoration shop that also purports to sell camping gear, Defenders Northwest, LLC, located in Gig Harbor (Pierce County), Washington, and its owners, husband and wife, Brian Hall and Michele Hall, were sued by customers for running a car restoration scam. The alleged scammers, according to court filings, recorded a fraudulent lien to attempt to conceal the fact that they stole their customers’ 1984 Land Rover Defender 130.

In February 2015, Brian and Michele Hall entered into an Automotive Restoration agreement with out-of-state car collectors and others in connection with the Defender, and the Petitioner delivered a vintage 1984 Land. According to court documents on August 9, 2022, Defenders Northwest and the Halls, with the help of their attorney and partner, Shawn Harju, recorded a document titled Chattel Lien Notice in the Pierce County Auditor’s Office, under recording Number 202208090168. The Chattel Lien claimed that a total of $68,652.55 was for completed restoration work on the car, consisting of interest of $18,717.15, “labor, skill, and material expended upon said vehicle which was completed upon the 3rd day of August 2022,” in the amount of $20,030.24; storage costs of $25,770.00; and sales tax of $4,125.16. On July 10, 2023, Defenders Northwest, LLC recorded an amended lien under recording Number 202307110476.

The problem was that the 8-year restoration project was never completed despite the fact that Brian and Michele Hall’s customers provided them with a donor vehicle and in excess of $200,000 to fully restore the vintage truck. In fact, a court ordered inspection of the vehicle revealed that what was supposed to be a customer’s restored Land Rover Defender was a different car that was missing VINs and was partly disassembled and completely rusted out. According to automotive experts hired by the victims of the alleged fraud, the imposter car was worthless scrap.

The Court in Pierce County, Washington, ruled that the lien must be dismissed, and the customers have requested attorneys’ fees. The Halls and their shop have relied on garage insurance policies to defend what appears to be an indefensible position. Liberty Mutual brought in its go-to insurance defense law firm, Gordon Rees Scully Mansukhani. Despite the missing car and the obvious scam, Gordon Rees and its lawyers, Philip Lo and Sally Kim, are pressing on, wasting money and court resources because they know that their legal bills will always get paid.

Why It Works: Social Media Influence and False Reputation

One of the most disconcerting aspects of car restoration scams is “how skillfully these criminals have integrated themselves into the classic car community,” points out Puckett. Through convincing social media profiles and glowing online reviews, they present a false image of credibility and expertise, lulling car collectors and enthusiasts into a sense of safety. They can host car rallies, cars, coffee, and open houses for collectors.

In reality, crooks have much control once they get physical possession of your car. They can file fake liens or file for bankruptcy, as the Halls have done. They can also simply disappear.

Because the car restoration scams are rising, federal law enforcement authorities are getting involved. The FBI is getting more involved in offering some measure of justice to the many defrauded automotive enthusiasts.