Kenneth James Grindrod facing jail over $90k classic car scam
A former licensed motor dealer pocketed $90,000 from the sale of a classic Mercedes-Benz that was meant to be returned to a deceased estate.
NSW
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A former licensed motor dealer pocketed $90,000 from the sale of a classic Mercedes-Benz that was meant to be returned to the estate of a dead man.
Kenneth James Grindrod, 80, faced Wyong Local Court on Wednesday after pleading guilty to procuring the commission of an offence.
The charge relates to the sale of a 1964 Mercedes-Benz 230SL belonging to the deceased estate of Brian Francis Kearns.
According to agreed police facts, Grindrod, who operated under the business name M1 Garage, was licensed as a motor dealer from 2018 until his licence expired in October 2022.
He ran his dealership from Somersby and Gosford through his other company, Mulsanne Motor Corporation Pty Ltd, despite that company never being licensed as a motor dealer, the facts state.
Kenneth Kearns, Brian’s brother, wanted to sell three vintage Mercedes-Benz vehicles from the estate.
After being recommended to Grindrod by members of the local vintage car club, Mr Kearns entered into agreements for the sale of two of the vehicles which were successfully sold, and the proceeds were returned to the estate.
Encouraged by these transactions, Mr Kearns agreed to allow Grindrod to sell the third car, a grey 1964 Mercedes-Benz 230SL, with an expected return of $135,000.
However, no written contract was produced, with Grindrod blaming technical issues and promising to email the paperwork.
On 22 November 2021, without informing Mr Kearns, Grindrod sold the grey Mercedes to Prestige Auto Traders Australia Pty Ltd for $105,000, keeping the funds for himself.
Over the following months, Grindrod misled Mr Kearns with false updates, claiming a buyer had found rust in the vehicle and that it had been sent for repairs.
Later, he suggested a buyer had chosen another car instead and offered to purchase the vehicle himself for $125,000, an offer that never materialised.
Between February 10 and March 28, 2022, Mr Kearns contacted Grindrod a number of times inquiring about the amount owed to the estate.
According to court documents, On April 7, 2022, Grindrod paid the estate $35,000, leaving an unpaid balance of $90,000.
After multiple unsuccessful attempts to recover the money, Mr Kearns took legal action.
In September 2022, the NSW District Court ordered Grindrod and his company to pay $103,419.24, including costs.
However, the order went unpaid, as Grindrod declared bankruptcy in November 2022, and Mulsanne Motor Corporation was liquidated the following year.
Grindrod’s Legal Aid solicitor Ian Le Breton told the court his client was now 80 years old and suffered from a multitude of ailments that saw him taking 9 different tablets a day.
He said it was not Grindrod’s fault that he was deemed unsuitable to perform community service but rather his age ailing health.
However Magistrate Justin Peach said Grindrod’s “breach of trust” which landed him before court, rather than his age or ill-health.
He said the initial fraud was valued at more than $100,000 but this could not be recovered in civil proceedings after he went bankrupt.
Mr Peach said Grindrod was sentenced to three years and six months jail and served a non-parole period of one year and six months for a previous, unrelated fraud offence and that “personal deterrence” loomed large.
He said he intended to sentence Grindrod to a minimum of 15 months jail but adjourned him to undergo a home detention assessment to see whether he could serve it as an intensive correction order or in full time custody.
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Originally published as Kenneth James Grindrod facing jail over $90k classic car scam
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