Specialty Sales Classics, the esteemed classic car dealer and restoration shop has been compelled to halt all operations, following orders from the California Department of Motor Vehicles. The compulsory closure is attributed to an expired business bond, emphasizing the importance of up-to-date business compliance.
The dealership owner, Ken Mattson, is currently under scrutiny for allegations of murky transactions across his myriad business ventures. The warning flags were raised following an investigation revealing suspected improprieties in his dealership. Further investigations uncovered links to questionable real estate and investment operations.
In light of these concerns, the Department of Justice started investigating Mattson’s businesses on May 24, after longstanding friend and business associate, Tim LeFever, raised suspicion on potential irregularities within the firms. The probe’s focus is to ensure transparency and legality across all business activities.
According to investigations, financial and legal inconsistencies appeared within Specialty Sales Classics before the dissolution of the business partnership between Mattson and LeFever.
Classic car dealership closure: a scrutiny
Over recent years, the dealership has been inundated with customer grievances regarding delayed or non-existent payments.
Mattson, solely responsible for the car funds, is alleged to be the primary reason behind these issues, often delaying payments and misplacing crucial documentation. The problems have significantly tarnished the company’s reputation among its clientele. Management is now taking steps to resolve these issues by implementing stricter control and more efficient payment systems.
It has been reported that Mattson frequently diverted transaction proceeds to his private entity, KS Mattson Partners, instead of using them for vehicle payments. This alleged misuse of funds has led to approximately $500,000 in unpaid client debt from undelivered cars. Furthermore, the California DMV and Better Business Bureau have recorded 31 complaints against Specialty Sales Classics concerning overdue payments, substandard customer service, and outstanding debts totaling around $95,000.
