California Attorney General Rob Bonta announced charges against 14 individuals accused of participating in a scheme to evade over $1.8 million in taxes by failing to report more than $20 million in luxury vehicle purchases. The case, developed with the California Department of Motor Vehicles (DMV) and the California Department of Tax and Fee Administration (CDTFA), involves allegations of conspiracy, filing false sales tax returns, failing to file tax returns, perjury, and money laundering.
According to authorities, the defendants allegedly submitted false documents indicating that high-value vehicles—including a $1.8 million McLaren Elva, a $1.5 million Porsche 918 Spyder, and a $1.26 million Ferrari F12TDF—were purchased for use outside California. Investigators found that these vehicles were actually delivered and used within the state.
“When bad actors abuse legal loopholes and submit fraudulent documents to evade their obligations, the California Department of Justice will not stand idly by,” said Attorney General Rob Bonta. “Every dollar of unpaid taxes is a dollar taken from California’s roads, schools, and the vital services our communities rely on. Schemes that defraud the government of millions in taxpayer money will not be tolerated. Today’s announcement should serve as a reminder: If you break the law and engage in fraud and theft, my office will hold you accountable.”
Trista Gonzalez, Director of CDTFA, commented: “CDTFA is committed to investigating and taking action against people who are avoiding their tax responsibilities, as exemplified by the filing of this case. California’s scenic roads are maintained by the tax dollars these motorists and their accomplices are trying to avoid. Today’s filing will hopefully discourage others from participating in this scheme.”
DMV Director Steve Gordon added: “This indictment demonstrates DMV’s commitment to investigate and prosecute individuals and entities that are defrauding our state out of critical vehicle registration dollars. Since 2023, the DMV has launched over 80 investigations and recovered $2.3 million and we’ll continue this work ensuring that Californians who purchase and operate cars in California comply with state laws.”
The investigation began in 2024 through collaboration between DMV, CDTFA, and the California Department of Justice (DOJ). The DOJ task force involved is known as TRUE (Tax Recovery in the Underground Economy Task Force), which brings together attorneys, investigators from multiple agencies including DOJ’s Special Prosecutions Section, Franchise Tax Board, Employee Development Department, Homeland Security Investigations, Internal Revenue Service as well as DMV and CDTFA.
TRUE works to address underground economic crimes through multi-agency cooperation across California.
Authorities emphasized that all charges remain allegations at this stage; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Rob Bonta leads the California Attorney General’s office, which serves as the state’s chief law enforcement authority responsible for enforcing laws throughout California. The office also promotes transparency using tools like OpenJustice for criminal justice data publication (official website). Its mission includes protecting public rights as well as advancing policies related to civil rights, consumer protection,economic security, environmental justice (official website), operating under constitutional authority within the executive branch.
A copy of the complaint has been made available.
