Announcing Online Auctions! Rare classic and collector cars vetted by our dealer network.
 Click here to bid now.

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

By Calum Brown Feb 11, 2019
news
Shop Classics
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.

View in gallery
View 4+
["JD Classics lawsuit"]
View
["JD Classics lawsuit"]
View
["JD Classics lawsuit"]
View
["JD Classics lawsuit"]
View
["JD Classics lawsuit"]
View 4+

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.


Related articles

Father And Son Reflect On 1971 Alfa Romeo Spider 1300 Junior

Even through the language barrier, the love of cars translates. Everyone seems to have their own idea of what const...
By Steven Symes Feb 14, 2020

Hit The Dunes In This 1970 Baja Bronco Tribute

This high-quality tribute build pays homage to the rarest Bronco ever made. If you're looking for a super-rare vers...
By Jeffrey N. Ross Feb 14, 2020

Mil-Spec Mercedes G-Wagen Transformed Into Bespoke Off-Roader

Forget Broncos and Humvees, these restored, former military G-Wagens are the ultimate classic off-road vehicles. Bre...
By Jeffrey N. Ross Feb 13, 2020

Are These Consecutive-VIN '55 Corvettes The Perfect Package Deal?

These Corvettes twins were separated at birth, reunited nine months later and they've been together ever since! When...
By Jeffrey N. Ross Feb 13, 2020
Show Me More

URL copied to clipboard

Powered by Speed Digital