Fred Golestani – Theft, Embezzlement and Fraud
Fred Golestani is the owner and Vice President of Qualified West and Qualified Mortgage Services.
He is now a defendant in a multi-million dollar theft. According to the case, Fred conspired with David Sajasi to steal funds from Beverly Hills Rent A Car.
The plaintiffs filed the case in the Los Angeles County Superior Court. They filed the case in 2018.
According to the complaint, Fred Golestani took part in a shady scheme and moved all of the firm’s business assets to Luxury Line LLC. Fred is the owner of this firm and he moved those assets without paying for them.
In sworn statements and testimony of his former employees, Fred Golestani started Luxury Line LLC in 2018. He sent its documentation to David Sajasi of Beverly Hills Rent A Car within a month of forming this new firm.
Court documents show that David was a minority owner and manager at Beverly Hills Rent A Car at the time.
In October 2018, David told the staff that they would now become the employees of Luxury Line LLC.
Afterwards, Fred started running the various Beverly Hills Rent A Car locations. He didn’t even change the furniture or the office equipment. Then, Fred installed new banners at every location which featured the name of Luxury Line LLC.
His firm has been running under the trade name Beverly Hills Car Rental since 2018. David claims that he is only a manager, not an owner. However, evidence shows otherwise.
$500,000+ PPP Loans for Luxury Line LLC:
SBA gave out PPP loans during the pandemic to help small businesses pay their employees. Luxury Line LLC used this opportunity to take out 2 loans, each of around $249,000 during this period.
Furthermore, both of their loans are forgiven. In other words, they didn’t have to pay back some or all of the amount they had borrowed.
According to the loan documents, Fred Golestani spent all of the money he received from the loan on paying his employees. However, I highly suspect he only paid his employees with that money.
Seeing the history of Fred Golestani and the legal debacle he is in, it wouldn’t surprise anyone if we later find out that he diverted some of the money to his own bank account.
It has been a common trend among shady PPP beneficiaries. However, if he really didn’t spend all of the $500,000+ PPP funds on payroll, as he mentions in his SBA application, then he would have committed PPP fraud.
Committing PPP fraud can cause a person to face charges of bank fraud, wire fraud, and face a multi-year prison sentence. I believe the authorities should review the finances of Luxury Line LLC to determine whether Fred Golestani paid his employees in full or not.
“They Don’t Pay Bonus” – Employee Reviews on Fred Golestani
Fred took over Beverly Hills Rent A Car in 2018 and made a lot of money as a result. However, it seems his staff members haven’t earned much compensation since the alleged illegal takeover.
According to employee reviews, Fred promises but never pays bonuses. Moreover, he forced the employees to change their compensation contract before completing his deal.
One reviewer complains that the new management has destroyed the company’s work culture.
Certainly, these employee reviews put Fred’s management skills in question. Especially when his other companies, Qualified West and Qualified Mortgage Services have no reviews online.
What if the Court Finds Fred Golestani Guilty?
If the court finds Fred Golestani guilty of stealing assets from the Beverly Hills Rent A Car, he could face some serious charges.
First, he would need to pay for all the assets he has stolen. Then, he would also need to pay damages which might be significantly higher than $10 million. On top of that, you have to account for punitive damages which could be a lot.
Moreover, when a company transfers the assets of another assets to itself illegally, the owners of the former must account for all the unpaid debts of the latter.
In other words, Fred Golestani would have to pay the creditors of Beverly Hills Rent A Car.
Certainly, that would put a damper on his finances.
Note that the court hasn’t found him guilty yet. Hence, I can’t say more on this subject.
What’s surprising is that Fred Golestani doesn’t highlight anywhere that he is the owner of Luxury Line LLC. He only markets himself as the VP and owner of Qualified West and Qualified Mortgage Services, a company with no online presence whatsoever.
Fred Golestani is facing a lawsuit for stealing the assets of Bevery Hills Rent A Car. His employees complain that he doesn’t pay them properly. Furthermore, he has taken out over $500,000 in PPP loans but it’s unclear whether he used those funds to pay his staff or himself.
- Facing a lawsuit for fraud
- Doesn’t pay his employees properly
- Suspected of committing PPP fraud