Equinox receiver challenges sale of $300,000 Ferrari

Tuesday, Aug. 15, 2000 | 10:26 a.m.

The court-appointed receiver of Equinox International Corp. of Las Vegas is seeking an order to rescind what he calls a "fraudulent transfer" of a Ferrari F40 by Platinum Motors of Irvine, Calif., to an undisclosed third party for allegedly less than the fair value of the race car.

Equinox, founded by Bill Gouldd, was ordered into receivership by U.S. District Court Judge Johnnie Rawlinson on April 20. The move followed a settlement between the company and the Federal Trade Commission midway through a trial to determine if the business was an illegal pyramid scheme.

Receiver Robb Evans, who said in a U.S. District Court lawsuit he is seeking to either repossess the car or recover its fair value to repay Equinox's debts, alleged an Equinox affiliate bought the Ferrari from Ogner Motorcars Inc. for $303,000 in 1996 and allegedly pledged the car and its title documents on March 30, 2000, as collateral for a $200,000 loan from Platinum Motors.

The suit said the Equinox affiliate was "induced by (Platinum) to deliver title documents and possession of the Ferrari to (Platinum) ostensibly ... to perfect (Platinum's) security interest in the Ferrari and to enable (its) banker to inspect the Ferrari and verify its value."

The suit alleged Platinum Motors, which allegedly claimed the transaction was a sale rather than a loan, allegedly sold the car on April 7 to a third party for around $280,000.

Gerald Waite, one of the receiver's attorneys, said the deal could be rescinded if the court determines the note is unenforceable because the Equinox affiliate violated the Uniform Fraudulent Conveyances Act when it allegedly sold the car without getting fair compensation to prevent the receiver from recovering assets to satisfy the company's debt.

Platinum Motors officials could not be reached for comment on the lawsuit.