The FBI is investigating a Florida classic car dealer accused of a massive fraud scheme
Stephen Phelps, owner of the now-bankrupt FSD Hot Rod Ranch, recently faced creditors to whom he owes money. After filing for Chapter 7 bankruptcy in December 2023, Phelps listed nearly 100 creditors and owed more than $4 million in liabilities. Although the Eustis Police Department and the FBI are investigating Phelps for fraud, he told his creditors during a recent Zoom session that his business simply failed.
“I’m very sorry you lost money,” Phelps said, according to Mike DeForest. Click WKMGOrlando. “It was just a business plan that I couldn’t implement.” However, many of Philip’s clients would argue otherwise.
FSD (Father, Son and Daughter) Hot Rod Ranch bought and sold Hot rods and classic cars but many of its customers either failed to get their money or did not receive the car they purchased. At least one customer obtained a fraudulent title, leaving him owing the bank for the car but unable to legally register it and drive it.
During the Zoom session, Brett Pace, a Utah native, asked Phelps how much $28,000 he was owed. In 2022, Pace agreed to sell Phelps his 1972 car GMC Sierra The truck was shipped to FSD in Florida. Phelps was supposed to pay Pace $28,000 within 90 days, under a deferred payment agreement, but he never did.
“I sincerely apologize for that,” Phelps said. “Nonsense,” replied Bess, apparently not accepting the apology.
Debra Myers claimed she bought a car in 1931 stronghold A replica model of Phaeton with her late fiancé from FSD for $25,000. After her fiancé died, she realized she didn’t get the car title. She now owes the bank but cannot drive it legally. It appears that Phelps never gave Myers the title because he doesn’t have it. Another creditor, Jim McMillan, interrupted to tell Myers that he still had the title to the ’31 Ford because Phelps still owed him $17,000 for the car. according to Florida lawIt is illegal to sell a vehicle without taking ownership of it.
There are currently 27 complaints to The best office work About FSD, all with similar stories of either not receiving payment, not receiving legal titles, or simply not receiving the cars they bought.
The electrician even asked Phelps if he would get the $8,300 he was owed for the work he did at FSD. “I don’t think so,” Phelps said.
According to Phelps, there are no more vehicles in FSD’s possession, and the last ones have returned to their owners or buyers. Since declaring bankruptcy and closing the doors of FSD, Phelps has mortgaged his $1 million, 10-acre residential property and rented it out to an event planning company, Pegasus Manor, to hold weddings and other venues there. However, Pegasus Manor is owned by former model Beth Sabol, who social media suggests is in a personal relationship with Phelps. Phelps told creditors that he had not yet received payment from Pagasus Manor for the rental of his property.
FSD’s website is now closed but you can still check out Archived version. Criminal investigations by the Eustis Police Department and the FBI are currently ongoing.
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(tags for translation) Stephen Phelps (R) Eustis Police Department