Man gets 13-year sentence for $2-million embezzlement scheme at luxury-car business

A Huntington Beach man who owned and managed a Costa Mesa luxury-car dealership was sentenced Monday to 13 years in state prison for embezzling about $2 million in a scheme involving Ferraris, Lamborghinis and Rolls-Royces.

Farhad Ebadat, 39, pleaded guilty to 16 counts of embezzlement, 13 counts of money laundering and 11 counts of grand theft, with sentencing enhancements for aggravated white-collar crime over $500,000 and $1.3 million. He also was ordered to pay nearly $2.1 million in restitution, according to the Orange County district attorney’s office.

From 2009 to 2012, Ebadat owned Costa Mesa Bellagio Motors, which specialized in buying and selling luxury vehicles, according to the district attorney’s office.

Ebadat told his victims that he would sell their vehicles on consignment, pay them and transfer the titles to the buyers. He sold cars worth $25,000 to $225,000 on consignment and diverted the payments to his own accounts. Buyers also were defrauded because they could not obtain legal title.

In some cases, Ebadat did not deliver vehicles to his customers, according to the district attorney’s office.

The Costa Mesa Police Department and the Orange County Auto Theft Task Force opened an investigation of the business in 2012. During that time, Ebadat closed the business, vacated the building and moved from his home in Huntington Beach to a rental in Bermuda Dunes in Riverside County. He also emptied his bank accounts into other accounts, according to the district attorney’s office.

—Anthony Clark Carpio

Twitter: @acocarpio