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Stephen Phelps, the proprietor of the now-defunct FSD Hot Rod Ranch, confronted a legion of creditors to whom he is indebted following the company’s declaration of bankruptcy. The saga, which unfolded during a recent Zoom session, shed light on Phelps’ financial quagmire, with liabilities exceeding $4 million and close to a hundred creditors on the list. Phelps filed for Chapter 7 bankruptcy in December 2023, attributing the demise of his business to insurmountable challenges rather than malfeasance.
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A Business Gone Bust
In his address to creditors, Phelps expressed remorse for their financial losses, citing the failure of his business model as the primary cause. However, the veracity of his claims faced skepticism from aggrieved customers who felt otherwise.
Disgruntled Customers Speak Out
FSD Hot Rod Ranch specialized in the trading of hot rods and classic cars, yet numerous customers found themselves either deprived of their purchases or embroiled in legal quandaries. Reports emerged of transactions gone awry, with some customers failing to receive payment for sold vehicles, while others never obtained the necessary legal documentation, such as titles, for their acquisitions.
Breach of Trust
Among the disgruntled clientele was Brett Pace, owed $28,000 for the sale of his 1972 GMC Sierra to Phelps, a transaction that never reached fruition despite assurances of payment within 90 days. Similarly, Debra Meyers lamented the absence of a title for her purchased 1931 Ford Model A Phaeton replica, leaving her saddled with debt and a car she couldn’t legally drive.
Legal Entanglements and Regulatory Scrutiny
The situation escalated with revelations that Phelps had sold vehicles without possessing the requisite titles, contravening Florida state law. Jim McMillan, another creditor, interjected during the session, disclosing that Phelps still owed him $17,000 for a vehicle while retaining its title.
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Mounting Complaints and Investigations
With 27 grievances lodged with the Better Business Bureau mirroring similar tales of financial loss and contractual breaches, the plight of FSD Hot Rod Ranch’s customers underscores a pattern of malpractice. Concurrently, ongoing criminal investigations by both the Eustis police department and the FBI aim to unravel the full extent of potential fraud and misconduct.
A Troubled Legacy
As FSD’s website languishes in shutdown, Phelps’s assets, including a 10-acre residential property, have been leveraged to mitigate the financial fallout. However, even his attempts to generate income through leasing the property to an events company, Pegasus Manor, have been fraught with complications, compounded by personal entanglements and delayed payments.
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