Streetbeasts fraud controversy

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[[Image:Streetbeasts_fraud_plea.jpg|right|thumb|400px|[[Media:Streetbeasts_judgement.pdf|Court documents]] show a guilty plea for wire fraud in a 1999 sentencing against Classic Motor Carriages, now operating as "StreetBeasts".]]
 
[[Image:Streetbeasts_fraud_plea.jpg|right|thumb|400px|[[Media:Streetbeasts_judgement.pdf|Court documents]] show a guilty plea for wire fraud in a 1999 sentencing against Classic Motor Carriages, now operating as "StreetBeasts".]]
StreetBeasts is a notorious manufacturer of street rod kit cars with a lengthy history of defrauding its customers. In June of 1999, the owner of StreetBeasts (at the time, operating under the name "Classic Motor Carriages") pleaded guilty to wire fraud, and was ordered to pay $2.5 million in restitution.
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StreetBeasts is a notorious manufacturer of street rod kit cars with an extremely poor reputation among the online automotive enthusiast community. In June of 1999, Streetbeasts's previous incarnation ("Classic Motor Carriages") pleaded guilty to wire fraud, and was ordered to pay $2.5 million in restitution.
  
Besides "Classic Motor Carriages", StreetBeasts has previously operated under the names "Auto Resolutions", "Classic Auto Replicas", "Fiberfab", and "Innovative Street Machines".
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Besides "Classic Motor Carriages", StreetBeasts (or companies run by Streetbeasts's ownership) has previously operated under the names "Auto Resolutions", "Classic Auto Replicas", "Fiberfab", and "Innovative Street Machines".
  
Recently, representatives from StreetBeasts have been making the rounds of automotive forums, attempting to conceal their history of fraud, and threatening those who inform the public of their deception with frivolous legal action and financial ruin.
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Recently, representatives from StreetBeasts have been making the rounds of automotive forums, attempting to spin their checkered past, and threatening those who inform the public of their history with frivolous legal action and financial ruin.
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After this wiki page was published, StreetBeasts and its owner [http://www.hotrodders.com/forum/streetbeasts-attacks-our-free-speech-frivolous-lawsuit-against-me-147173.html filed three frivolous lawsuits against the administrator of Hotrodders.com], across two states, over two years. All lawsuits were [http://www.hotrodders.com/forum/hotrodders-com-defeats-streetbeasts-all-lawsuits-dropped-189082.html eventually dismissed], Streetbeasts went out of business, and its assets were [http://static.auctionservices.com/documents/31629/3308-Fly.pdf sold at auction]. The lawsuits were classic examples of [http://en.wikipedia.org/wiki/SLAPP SLAPP suits] -- frivolous suits intended to silence criticism by burdening the defendant with the cost of legal defense. Hotrodders.com forum members banded together to raise funds to defend against the suits, and ultimately succeeded in preserving their free speech.
  
 
==Wire fraud case against Classic Motor Carriages, AKA "StreetBeasts"==
 
==Wire fraud case against Classic Motor Carriages, AKA "StreetBeasts"==
In 1994, the Florida Attorney General's office filed suit against Classic Motor Carriages, on behalf of hundreds of defrauded customers, in ''USA v. GGL d/b/a Classic Motor Carriages''. ("GGL" stands for George G. Levin, the owner of Classic Motor Carriages). For the relevant court documents, see: [[Media:Streetbeasts_fraud_charges.pdf|Streetbeasts_fraud_charges.pdf]] and [[Media:Streetbeasts_judgement.pdf|Streetbeasts_judgement.pdf]].
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In 1994, the Florida Attorney General's office filed suit against Classic Motor Carriages, on behalf of hundreds of defrauded customers, in ''USA v. GGL d/b/a Classic Motor Carriages''. ("GGL" are the initials of George G. Levin, the owner of Classic Motor Carriages). For the relevant court documents, see: [[Media:Streetbeasts_fraud_charges.pdf|Streetbeasts_fraud_charges.pdf]] and [[Media:Streetbeasts_judgement.pdf|Streetbeasts_judgement.pdf]].
  
 
The case stated that, over a period of eleven years, Classic Motor Carriages defrauded people by "knowingly and willfully" making "false and misleading statements, representations, and promises" in regard to the "quality of the kit car purchased, the delivery time to the customer and the required assembly time." In addition, "false and fraudulent representations" were made to obtain deposits from prospective customers. Finally, the case stated that Classic Motor Carriages induced its customers to pay for kit cars, and then "failed to provide the automotive parts necessary for complete assembly."
 
The case stated that, over a period of eleven years, Classic Motor Carriages defrauded people by "knowingly and willfully" making "false and misleading statements, representations, and promises" in regard to the "quality of the kit car purchased, the delivery time to the customer and the required assembly time." In addition, "false and fraudulent representations" were made to obtain deposits from prospective customers. Finally, the case stated that Classic Motor Carriages induced its customers to pay for kit cars, and then "failed to provide the automotive parts necessary for complete assembly."
  
George G. Levin eventually pleaded guilty in the case in summer of 1999, and was ordered to pay $2.5 million in restitution. Shortly thereafter, sales plummeted, and Classic Motor Carriages was evicted from its headquarters. Around the same time, Levin re-opened the kit car business under a new name: "Auto Resolutions" (later changed to "StreetBeasts").
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Classic Motor Carriages eventually pleaded guilty to the charges in summer of 1999, and was ordered to pay $2.5 million in restitution. Shortly thereafter, sales plummeted, and Classic Motor Carriages was evicted from its headquarters. Around the same time, the owner of Classic Motor Carriages, George G. Levin, re-opened the kit car business under a new name: "Auto Resolutions" (later changed to "StreetBeasts").
  
 
==StreetBeasts attempts to silence criticism==
 
==StreetBeasts attempts to silence criticism==
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</blockquote>
 
</blockquote>
  
These forum posts were an attempt at producing what is known as a [http://en.wikipedia.org/wiki/Chilling_effect_(term) Chilling effect], the suppression of free speech with fear tactics.
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These forum posts were an attempt at producing what is known as a "[http://en.wikipedia.org/wiki/Chilling_effect_(term) chilling effect]", the suppression of free speech with fear tactics.
  
 
===Use of aggressive spin tactics to deny wire fraud guilty plea===
 
===Use of aggressive spin tactics to deny wire fraud guilty plea===
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Referencing [http://www.miaminewtimes.com/2006-03-02/news/a-beastly-background an article in the Miami New Times exposing StreetBeasts], in [http://www.hotrodders.com/forum/streetbeast-rod-kits-13109-29.html#post1006382 this post], a StreetBeasts representative said: "What this article doesn't say is that anyone in particular was found guilty".
 
Referencing [http://www.miaminewtimes.com/2006-03-02/news/a-beastly-background an article in the Miami New Times exposing StreetBeasts], in [http://www.hotrodders.com/forum/streetbeast-rod-kits-13109-29.html#post1006382 this post], a StreetBeasts representative said: "What this article doesn't say is that anyone in particular was found guilty".
  
In [http://www.hotrodders.com/forum/streetbeast-rod-kits-13109-42.html#post1012355 this post], a StreetBeasts representative said: "after the investigation they concluded that no economic fraud was committed so no indictment was made".
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In [http://www.hotrodders.com/forum/streetbeast-rod-kits-13109-42.html#post1012355 this post on the Hotrodders Bulletin Board], a StreetBeasts representative said: "after the investigation they concluded that no economic fraud was committed so no indictment was made".
  
 
====Fudging the connection between StreetBeasts and Classic Motor Carriages====
 
====Fudging the connection between StreetBeasts and Classic Motor Carriages====
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===Alteration and deletion of this wiki article===
 
===Alteration and deletion of this wiki article===
After being notified of the creation of this wiki article to document StreetBeasts's history of fraud, StreetBeasts representatives edited this article in a blatant attempt to cover-up the exposure of their ethically questionable actions.
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After being notified of the creation of this wiki article to document StreetBeasts's history, Streetbeasts representatives edited this article in a blatant attempt to cover-up the exposure of their ethically questionable actions.
  
 
First, StreetBeasts representatives edited the article to include "customer testimonials" of extremely questionable authenticity, including [http://www.crankshaftcoalition.com/wiki/index.php?title=Streetbeasts_fraud_controversy&diff=8106&oldid=8099 one edit] that hilariously included the following text:
 
First, StreetBeasts representatives edited the article to include "customer testimonials" of extremely questionable authenticity, including [http://www.crankshaftcoalition.com/wiki/index.php?title=Streetbeasts_fraud_controversy&diff=8106&oldid=8099 one edit] that hilariously included the following text:
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==Specific problems with StreetBeasts kit cars==
 
==Specific problems with StreetBeasts kit cars==
 
===Aesthetically incorrect body design===
 
===Aesthetically incorrect body design===
Below are photographs of a Street Beast on the left and steel 1934 Ford on the right.  Although some may say that the differences in the two are subtle they actually are substantial.  Perhaps the first noticeable difference is the grill.  The Street Beast grill does not even try to emulate the original.  Another major difference is the roofline. The Street Beast is chopped but has the front lower than the rear which creates a very mis-shaped window.  Also the hood sides are stylized and not even close to the original.  Finally the biggest difference is that the Street Beast is a one-piece body compared to the original steel version on the left.  This means that none of the major parts made for the original car such as hood, fenders, doors, trunk lid, running boards, grill, glass, or windshield frame will fit the Street Beast. None of these parts made by any of the aftermarket manufacturers will fit either.  The customer is "LOCKED" into returning to Street Beast for any repair parts and is therefore at the mercy of the company for not only price but delivery time for their needed parts.  Also, because the body is one piece a damaged fender can't be simply unbolted from the car and replaced with a new one.  The surgery involved is much more complicated and expensive.
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Below are photographs of a Street Beast on the left and steel 1934 Ford on the right.  Although some may say that the differences in the two are subtle they actually are substantial.  Perhaps the first noticeable difference is the grill.  The Street Beast grill does not even try to emulate the original.  Another major difference is the roofline. The Street Beast is chopped but has the front lower than the rear which creates a very mis-shaped window.  Although, any chopped top, roof modification, etc is going to create "mis-shaped" glass and window openings.  Also the hood sides are stylized and not even close to the original.  Finally the biggest difference is that the Street Beast is a one-piece body compared to the original steel version on the left.  This means that none of the major parts made for the original car such as hood, fenders, doors, trunk lid, running boards, grill, glass, or windshield frame will fit the Street Beast. None of these parts made by any of the aftermarket manufacturers will fit either.  The customer is "LOCKED" into returning to Street Beast for any body repair parts and is therefore at the mercy of the company for not only price but delivery time for their needed parts.  Even though, most builders normally return to their vehicles manufacturer for major components.  Also, because the body is one piece a damaged fender can't be simply unbolted from the car and replaced with a new one.  The surgery involved is much more complicated and expensive.
  
 
'''Side-by-side comparison photos go here. If you have these photos, please [[Special:Upload|upload them to the wiki]].'''
 
'''Side-by-side comparison photos go here. If you have these photos, please [[Special:Upload|upload them to the wiki]].'''
  
===Poor resale value===
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===Resale value===
 
Streetbeasts are reputed to have a poor resale value when compared to other kit cars, and to other fiberglass-bodied street rods.
 
Streetbeasts are reputed to have a poor resale value when compared to other kit cars, and to other fiberglass-bodied street rods.
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However, the opposing opinion states that there is no hard proof. Kit cars are frequently sold unfinished by novice builders, and that could impact the overall perception of "lower resale value".  Various eBay sales constitute anecdotal evidence, and can't be used to credibly demonstrate the lower resale value of StreetBeast vehicles.
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Numerous factors go into deciding the resale value of a vehicle, including proper assembly, "right" looks, details, overall appearance, and many other deciding factors.
  
 
===Lack of parts interchangeability===
 
===Lack of parts interchangeability===
On their website, StreetBeasts claims that their bodies are "pretty close" to the originals, but then goes on to state that "Street Beasts parts generally do not interchange with parts on original steel bodied cars".
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In [http://www.streetbeasts.com/subquestion.php?hsk=13 the FAQ on their website], StreetBeasts claims that their bodies are "pretty close" to the originals, but then goes on to state that "Street Beasts parts generally do not interchange with parts on original steel bodied cars".
  
 
Most aftermarket or original parts will not interchange with StreetBeast vehicles. This compels StreetBeast kit car owners to order replacement parts directly from Streetbeasts.
 
Most aftermarket or original parts will not interchange with StreetBeast vehicles. This compels StreetBeast kit car owners to order replacement parts directly from Streetbeasts.
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===Mainstream news media coverage===
 
===Mainstream news media coverage===
*http://www.miaminewtimes.com/2006-03-02/news/a-beastly-background/
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====Miami New Times====
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*[http://www.miaminewtimes.com/2006-03-02/news/a-beastly-background/ A Beastly Background]
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====Miami Herald====
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*[http://www.crankshaftcoalition.com/wiki/Image:Suestwoofitscritics.pdf State Attorney General Sues Local Car-Kit Firm]
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*[http://www.crankshaftcoalition.com/wiki/Image:Evictedfirm.pdf Classic Motor Carriages Closes, Evicted Firm Vows to Reopen]
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*[http://www.crankshaftcoalition.com/wiki/Image:Facinglawsuit.pdf Facing Lawsuit, Classic Motor Carriages Agrees to Close]
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*[http://www.crankshaftcoalition.com/wiki/Image:Lotsoffingerpointing.pdf A Classic Collision -- There's Lost of Finger-Pointing as Car Company Flounders]
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*[http://www.crankshaftcoalition.com/wiki/Image:Mailingsfuelcomplaints.pdf Mailings Fuel Complaints about Car-Kit Company]
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*[http://www.crankshaftcoalition.com/wiki/Image:Suesconsumeradvocate.pdf Classic Motor Carriages Sues Consumer Advocate over Letters]
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*[http://www.crankshaftcoalition.com/wiki/Image:Suestwoofitscritics.pdf Classic Motor Carriages Sues Two of its Critics]
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====Broward Palm Beach New Times====
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*[http://blogs.browardpalmbeach.com/pulp/2009/11/george_levin_streetbeasts_rothstein_banyon.php Rothstein Feeder George Levin's Ugly Past]
  
 
===Web articles===
 
===Web articles===
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===Forum discussions===
 
===Forum discussions===
*http://www.hotrodders.com/forum/streetbeast-rod-kits-13109.html
 
 
*http://autos.groups.yahoo.com/group/Fiberfab_CMC/message/22
 
*http://autos.groups.yahoo.com/group/Fiberfab_CMC/message/22
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*http://www.hotrodders.com/forum/streetbeast-rod-kits-13109.html
 
*http://www.jalopyjournal.com/forum/showthread.php?t=72255
 
*http://www.jalopyjournal.com/forum/showthread.php?t=72255
*http://www.speedstershop.com/viewtopic.php?t=360
 
 
*http://www.speedstershop.com/viewtopic.php?t=156
 
*http://www.speedstershop.com/viewtopic.php?t=156
*http://www.streetrodstuff.com/Roundtable/Archives/Year_2002/February/121.php
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*http://www.speedstershop.com/viewtopic.php?t=360
 
*http://www.streetrodding.com/index.cfm/f/forums.getThread/id/3215
 
*http://www.streetrodding.com/index.cfm/f/forums.getThread/id/3215
 
*http://www.streetrodding.com/index.cfm/f/forums.getThread/id/6527
 
*http://www.streetrodding.com/index.cfm/f/forums.getThread/id/6527
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*http://www.streetrodstuff.com/Roundtable/Archives/Year_2002/February/121.php
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[[Category:Hotrodders.com]]

Latest revision as of 18:04, 23 February 2011

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