Insurer sues FBI for crashing Ferrari

[ErVikingo]

Our tax dollars at work...


Robert Snell / The Detroit News

Detroit— The FBI broke a $750,000 Ferrari, but didn't buy it.

Now, the feds won't produce records that could shed light on the costly crash, according to a lawsuit filed today in U.S. District Court in Detroit.

A Michigan insurance company sued the FBI and U.S. Department of Justice today to compel production of records sought under the Freedom of Information Act.

The lawsuit stems from the May 2009 crash of a Ferrari F50 in Lexington, Ky. The exotic sports car was being driven by an FBI special agent who lost control and crashed into a tree, significantly damaging the car, according to the lawsuit.

The lawsuit chronicles the mysterious case of a stolen Ferrari that later ended up in the FBI's custody.

The sports car was stolen from a Ferrari dealership in Rosemont, Penn., in September 2003. The dealer submitted a claim to Southfield-based Motors Insurance Corp., which had insured the Ferrari.

Motors Insurance paid the claim and assumed ownership of the Ferrari.

Almost five years later, in August 2008, the FBI and local law-enforcement authorities found the Ferrari in Kentucky.

The FBI stored the Ferrari during an investigation and eventual prosecution of the thief, according to the lawsuit.

Then, the FBI took it for an ill-fated spin, according to the lawsuit.

Following the crash, Motors Insurance submitted a claim to the FBI and Justice Department for $750,000.

The federal agencies rejected the claim last March, arguing the crash happened while the Ferrari was being detained by the FBI, according to the lawsuit. The insurance company tried again, but the claim was rejected a second time in September.

In October, the insurer submitted FOIA requests for documents relating to the use, custody, possession, storage or transportation of the Ferrari. Motors Insurance also asked for documents relating to the accident.

Two requests were either denied — citing federal exemptions — or went unanswered. In one response, the Justice Department produced an e-mail from Assistant U.S. Attorney J. Hamilton Thompson from May 27, 2009, the day of the crash.

The e-mail indicated Thompson took a "short ride" in the Ferrari with FBI Special Agent Frederick C. Kingston, who lost control and crashed into a curb, bushes and a small tree.

The Ferrari vehicle "fishtailed and slid sideways" within only a few seconds of leaving the warehouse where the vehicle was being stored," according to the lawsuit.

"Needless to say we need to see the suit and make a determination on how we'd respond in court," Justice Department spokesman Charles Miller said in an interview today.

rsnell@detnews.com

(313) 222-2028

[masraum]

Ouch, thats not good. Joyriding and wrecking a high end ferraricant be good for your career.

[lubo50]

FBI agent needs first to learn how to drive.

[kaisen]

If you'd like to learn more from firsthand sources:

Remember the stolen F50 from Algar? - FerrariChat.com

FBI wrecks an F50 in Lexington Ky - FerrariChat.com

[legion]

No nothing will happen to the agent. No investigation will happen. The insurance company will be left holding the bag.

A few years ago, a friend of mine got t-boned by a Normal cop as he drove through an intersection. The cop claimed that he had his lights on and got t-boned by my friend and wrote him a ticket. Basically the cop ran a red light and covered it up.

My friend finally got a hold of the video from the intersection. It showed him entering the intersection, then went black for 30 seconds, then showed the results of the accident. At least he got out of being "at fault" for the accident, but his insurer declined to go after the police department.

Sadly, at all levels of law enforcement, there is an attitude that they are above the law. (Not everyone has it, but it is not uncommon.) Because LE controls what is known about these incidents, they often get away with it.

[ckissick]

[stomachmonkey]

Originally Posted by legion

A few years ago, a friend of mine got t-boned by a Normal cop as he drove through an intersection. The cop claimed that he had his lights on and got t-boned by my friend and wrote him a ticket. Basically the cop ran a red light and covered it up.

Hah, same thing happened to a friend of mine but with a Paramedic. He said after the hit they were looking at each other and then the driver reached out and flipped on the lights.

[Tobra]

That happened to my wife with the son of a constable. There was a wreck, and the firemen were having people go around on the shoulder. My wife, in a Fiero which was a new car at the time because she was only 16, got hit by a guy driving a dually pickup who was going the other direction, trying to go around all the traffic backed up by the accident.

Almost killed her, nothing happened to the guy who did it, his dad fixed for him. My wife's parents happened to be out of town at the time, drove back from Florida quick as they could.

[lowyder993s]

From the former owner and how he nearly lost a bunch of money! Interesting read!

Back in 2003, I attended a party thrown by my wife's colleagues from her residency training program (she's a radiologist). During that party, one of her colleagues introduced me to her husband, an airline pilot, and we quickly hit it off due to a mutual passion for cars. I asked him what he had and he mentioned a testarossa and an F50. Needless to say, this got my attention and I thought maybe I misheard, and asked again to which he replied "yeah, its parked outside, you want to see it ?"

So, about 10 minutes after meeting this fellow, I am out riding in his F50 thinking this is wonderful ! The car was plated in KY, current tags, and of course being driven openly. I asked him where he obtained it and he told me it was from an old guy out west who tracked it and he bought it from him "at a good price" since he was getting old.

Over the subsequent years, I saw the F50 out and about, met the owner and his wife several times at local concours and shows, and jokingly asked them for first right of refusal should he ever decide to sell it. Fast forward to 2008, and the couple was in the middle of a divorce. The owner comes to me and says he might have an interest in selling the car if I was interested. Well, of course I was !

A deal was struck, monies and title exchanged (title was clear and current, clean carfax...I know, worthless ! and the car needed a major and fuel tank so I negotiated a price that took into account at least 30-50k worth of anticipated work.) Admittedly, I did not do enough due diligence at this point. The car was being driven openly, current plates, and it was with someone who "I knew". I could never have dreamed the saga about to unfold.

Several weeks later, I contacted Ferrari Spa via their website with the cars details in order to register myself as the new owner as I had done with the other ferraris. I knew something was up when they asked me to fax a copy of the title to them. I found the engine number on the car and sent them a photo...and to my utter dismay, they confirmed that this was the engine number on the car stolen from Algar Ferrari.

I cannot tell you how that moment felt...utter disbelief, shock...a knee bending moment that left me stunned. I knew I had let my guard down and done a deal in a way that I never had before...and it stood to cost me several hundred thousand dollars. I contacted the local police and FBI, and they arrived the next day. I showed them the material gathered in the conversation with Ferrari Spa and Ferrari NA, and they obviously knew what they were looking at. The car was taken after that meeting and it was a sinking feeling to see it being driven away on a flatbed.

I later found out how he obtained a clear title and license plate. Well, he had a friend in the nicholasville KY DMV. He was advised to write a letter to the state capitol (I was shown this letter by the FBI). It said that this car was imported to be sold and that the original buyer never took possession. The MSO was lost, and the writer was asking the DMV in Frankfort to issue a title...sworn affidavit etc...and THATS ALL IT TOOK ! I was shocked at how easy in was to be honest. He obviously had helped duplicating the VIN plate, and the result was a legally titled and clear plate that he renewed each year. Oh, and the stated value on the original title paperwork was $22,500

Now, after collecting myself, I had the task of getting my money back. How you may ask ? Well, it turns out that a criminal's greed for money is only exceeded by the desire to remain out of jail and free. I calmly called the seller on a sunday night and proceeded to explain that there was an "irregularity with the VIN and engine number" and that I needed to reverse the deal. The first words out of his mouth were "Do the police know, we can reverse this deal tomorrow" At that point I knew my only chance of getting the money back was to tap into his desire to get the car back and get rid of it. The next day, 80% of the purchase price was wired back into my account. I told him the car was not at my residence (did not want a criminal trying to reclaim it in the middle of the night)....and technically it wasn't

The next two weeks, I methodically called and waited for increments of the remaining 20% to come in. In the meantime, police had discovered that the other two Ferraris in his possession were also stolen. Luckily for me, as the investigation continued they did not move in to arrest him and that gave me some time. I have to say the Lexington PD and the FBI were brilliant to work with, absolutely first class and clearly understanding that we had been duped by supposed "friends". They were elated when the first wire hit and subsequent wires arrived for the full amount. They sent Algar Ferrari a picture of this guy, and the salesman that fateful day it was heisted confirmed it was person. He had presented impeccable ID and a credit check revealed stellar credit. That to me is unbelievable...I could never have imagined this fellow being capable of that...something so brazen...I just didn't see it in him. But I suppose the desire to be something you are not just overwhelmed him. The other cars were identified as stolen from Long Island (testarossa and 328 GTS). I had seen all three cars at a hangar in Lexington Airport where he stored them...in retrospect one of the safest places to stash something stolen since it is so secure.

Anyway, shortly after I received the last wire, the police moved in and arrested him. He was convicted in Federal Court in Lexington for grand theft and I believe served 2 yrs before release and has several years of probation ahead. He made a full confession and this was likely a factor in what I consider a fairly weak sentence.

The sad part of this is what happened to the F50 in FBI hands. The car was being shifted from one location to another and the roads were greasy from a light rainfall. Where the accident happened is a small industrial road but it is at a crest. I think it came over the crest a little hot and the back end got wiggly on the wet surface. He went over a curb, took out the rear wheel and suspension and planted the side of the car firmly around a tree. Unfortunately, this caused terminal damage to the tub. Its sad, because I was in discussions with Algar and the insurance company to buy it back. The terms of Algars insurance policy gave them first right of refusal to buy it back. Once the car had crashed, they sent technicians over to take a look at it...their inspection lasted 5 mins at which point they declared it a total loss.

The latest in this saga is the now publicized dispute between the insurance co and the government/FBI. Sadly, the car sits gathering dust in a warehouse somewhere...a pitiful end to an infamous car that was much loved in its short stay with us. Someday, maybe I'll pursue another F50....but I have to say this whole episode has dampened my zeal for them a bit

[kaisen]

Jas, the man in the story above, has a very impressive collection of exotics, including Porsches