There are expensive ways to build a car collection, and then there are ways that come with a federal prison sentence. A Texas businessman who accumulated more than 90 exotic and collector vehicles is learning that distinction, with cars being forfeited to help repay the people whose money financed his automotive shopping spree.
According to the U.S. Attorney’s Office for the Northern District of Texas, Clayton Lloyd Iley, 41, of Stephenville, was sentenced Oct. 1 to 160 months in federal prison for wire fraud and aggravated identity theft. That works out to 13 years and four months, which is considerably longer than most people keep a car. He pleaded guilty June 17.
The vehicles identified in the Justice Department’s October announcement include Lamborghini Aventadors and Huracans, Ferrari 488s, three Maserati MC20s, a Dodge SRT Viper and a Porsche Taycan. There is also a Jeep Gladiator and a 2013 Toyota Tundra, presumably for those occasions when a Lamborghini just won’t accommodate the shopping list. Federal authorities said the seized vehicles will be sold to fund restitution for victims.
Fans of older American iron have something to look at, too. An earlier Justice Department release identified a 1968 Pontiac Firebird, 1969 and 1974 Chevrolet Camaros, a 1979 Pontiac Trans Am and a 1982 Camaro among the seized vehicles. Military vehicles also appeared on that list. Apparently, choosing one particular collecting theme was never a priority.
Unfortunately, prosecutors described a much uglier story behind the garage doors. Iley operated Clayton Texas Legacy Insurance Group in Cross Plains, Texas. According to the Justice Department, he collected more than $2 million by promoting a fictitious “Bonded Note” loan program he claimed was provided by the Defense Department to private military contractors. The program did not exist, and the money went toward personal expenses and other parts of his scheme.
Prosecutors also said he accepted insurance premiums without obtaining the requested policies. Separately, he used victims’ personal information to obtain credit cards without their permission, then used those accounts to move money into a business he controlled and pay personal expenses, including vehicle purchases. In other words, some people were financing his lifestyle without even knowing they had become his lenders.
Before anyone starts clearing garage space, there is an important distinction: The agreement to forfeit more than 90 vehicles does not establish that all of them will appear in one auction. The Justice Department’s announcements identify seized vehicles and their intended sale, but do not provide a collection-specific auction date.
Anyone browsing government auctions should also bring more than enthusiasm. Apple Auctioneering, which handles seized vehicles for federal agencies, states that its assets are sold as-is and where-is, without warranties or guarantees. Buyers are responsible for inspecting the merchandise and deciding what it is worth, and all purchases are final. Its general registration guidance says first-time bidder approval can take 24 to 48 hours.
My advice would be to approach any such purchase with the same discipline you would use buying another expensive used vehicle: Verify the paperwork, investigate its condition and leave room in the budget for surprises. A Ferrari can look like a bargain right up until it needs something.
The cars make this story interesting, but the victims are the reason those sales matter. Hopefully, the collection’s next chapter puts money back where it belonged in the first place.