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California Charges 14 in Luxury Car Tax Scheme Tied to Montana Registrations

California regulators have launched broad dealer audits following the charges.

Overview

  • Attorney General Rob Bonta announced a 56-count complaint accusing 14 people of conspiracy, filing false sales tax returns, failing to file tax returns, perjury and money laundering.
  • Authorities say the scheme concealed more than $20 million in high‑end vehicle purchases to avoid over $1.8 million in California taxes, involving cars such as a McLaren Elva, a Porsche 918 Spyder and a Ferrari F12TDF.
  • Investigators allege that since 2018 the defendants submitted false CDTFA and DMV paperwork and bills of lading claiming out‑of‑state use while the vehicles were delivered, driven and stored in California.
  • CDTFA and the DMV are auditing nearly 300 dealers and reviewing more than 2,500 sales linked to Montana registrations across roughly 500 California dealerships, with further enforcement actions expected.
  • The DMV reports 80‑plus criminal investigations since 2023, identification of 601 fraudulently registered vehicles and about $2.3 million recovered, with hotspots including 416 suspicious sales in Beverly Hills and 99 in Mill Valley.