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Derek Hood Of JD Classics Sued for £64m Over Classic Car Fraud

By Calum Brown Feb 11, 2019
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By Calum Brown Feb 11, 2019
Derek Hood is being sued for £64 million worth of damages by JD Classics' administrators over 'financial irregularities'

Former Essex dentist Derek Hood, 58, and his wife Sarah are facing a £64 million ($82million/€73million) lawsuit in regards to ‘financial irregularities’ discovered prior to the collapse of JD Classics – the world’s leading classic car dealership.

Mr. Hood sold a majority stake in JD Classics, a brand he spent 30 years establishing through classic car restoration, racing, and trading activities back in 2016. Celebrated as the driving force behind a £3 billion international market for classic motor vehicles, it has previously been revealed that Hood was branded a ‘serial fraudster’ by one high-end client.

Per company account statements, the market value of cars on the books reached £106 million. Except, the unveiling of ‘financial irregularities’ in 2018 forced a large write-down of inventory by JD Classics’ new owners – Charme Capital, a private equity firm.

JD Classics fell into administration in September last year, with administrators now suing Mr and Mrs Hood for £64 million ($82 million/€73 million).

Derek Hood is accused of ‘inflating profits and turnover through dishonest transactions and creating false statements about the value of some of the vehicles,’ according to The Times.

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Further evidence has been submitted that Hood marked up the price on a number of classic Jaguars to ‘create the false appearance of a vibrant market’. This also inflated the vehicle values for potential buyers. Administrators put forward the claim via legal documentation last week.

A Jaguar D-type, worth £650k according to RM Sotheby’s, was apparently bought and sold no less than eight times, resulting in recorded ‘sales’ of more than £24 million. Almost £7.25 million was then claimed as company profit.

As a direct result, JD Classics charged £11.5 million for a rare Jaguar XKSS, which administrators claim ‘substantially exceeded its real worth’.

Further allegations have emerged surrounding a replica Ford GT40 MkI. Hood overstated company assets by claiming the racing Ford was a genuine example, listed with a worth of £5.5 million. The administrator’s legal documents state, "It is believed by the administrators to be closer to £2.52 million based on a valuation."

With tensions rising, a legal advisor to Mr and Mrs Hood has stated that the company collapse was the fault of Charme Capital; apparently loading the firm with unsustainable levels of debt. The Hoods strong deny any wrong doing.

JD Classics had showrooms in Mayfair, London and Maldon, Essex. A Californian showroom in Newport Beach had not long opened. The company also boasted leading sponsorship deals to Le Mans Classic and the [Goodwood Revival](https://www.autoclassics.com/posts/news/jd-classics-announced-as-goodwood-members-meeting-partner).

When Mr. hood sold JD Classics, the firm had recorded an annual turnover close to the £125 million mark, with more than £17 million profits.

This is not the first lawsuit to befall Derek Hood and JD Classics, however. A judge passed comment that Mr Hood acted with ‘deliberate and dishonest conduct’ after Mike Tuke, 71, sought legal action over a Jaguar Lister Knobbly last year.

It was during this time that Charme Capital unearthed various disputes and declared ‘financial irregularities’ had been found. The lawsuit continues.


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