EUSTICE, FL – As law enforcement expands their investigation into fraud at a car dealer that specializes in hot rods and classic cars, the business owner has filed for bankruptcy protection.
At the same time, the Lake County car dealership’s sprawling property is becoming an event venue for weddings and other special occasions.
FSD Hot Rod Ranch bought and sold vintage vehicles until it suddenly closed last fall. FSD stands for “Father, Son, Daughter,” according to an archived copy of the now-defunct company’s website.
Federal authorities and the Eustis Police Department are investigating FSD Hot Rod Ranch for potential fraud and financial crimes, News 6 first reported last year.
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Classic car owners who arranged for the dealer to consign their vehicles were never paid, according to multiple lawsuits, while customers who bought antique cars from the dealer claim they never received ownership of the vehicles .
Steven Phelps, the owner of FSD Hot Rod Ranch, filed for Chapter 7 bankruptcy protection last month.
Phelps lists nearly 100 creditors and more than $4 million in liabilities in bankruptcy filings.
At least 60 of those creditors appear to be former customers of FSD Hot Rod Ranch, records show.
The car dealer claims he has very few assets other than his 4,800-square-foot house and 10-acre property near Eustis, which Phelps valued at roughly $1 million in his bankruptcy filings.
This property is now home to Pegasus Manor, a special event venue for weddings and corporate retreats.
Pegasus Manor celebrated its grand opening Sunday with “champagne tours” of the Phelps Ranch on County Road 439, according to the company’s website.
Garages that once housed classic cars are being transformed into furnished banquet rooms with tables, drapes and chandeliers, images on Pegasus Manor’s website show.
“I have nothing to do with FSD Hot Rod Ranch,” Pegasus Manor owner Beth Sobol told News 6.
Sobol, who also uses the name Betty Ferrero, is the sole employee of Pegasus Manor, according to business records filed with the Florida Department of Corporations.
Sobol did not respond to News 6’s questions about whether Phelps is involved in her new event venue business. Sobol indicated on social media that he was in a personal relationship with Phelps.
Phelps took part in Pegasus Manor’s grand opening festivities Sunday afternoon, videos posted on the wedding venue’s Facebook page show.
“This is our first event and we are so excited,” Phelps told a group of brides-to-be and grooms who toured a garage previously used by the FSD Hot Rod Ranch.
Phelps and his attorneys did not respond to multiple emails from News 6 seeking comment.
In written responses to lawsuits, the car dealer denied defrauding vehicle owners or engaging in deceptive and unfair business practices.
Phelps has not been charged with any crimes.
Under federal bankruptcy law, debts incurred through fraud are not dischargeable.
“I hope the FBI finds out where his money is,” said Kevin Lynch, a retired lieutenant with the Sarasota County Sheriff’s Office who now restores antique emergency vehicles.
Lynch said he arranged for FSD Hot Rod Ranch to sell his 1953 Chevrolet ambulance on consignment last spring.
Under a “deferred payment agreement,” Lynch said FSD Hot Rod Ranch agreed to pay him $22,000 within 90 days of receiving the car unless the dealer sold it sooner.
Lynch, who sent his ambulance from his home in South Carolina to Florida, contacted the Eustis Police Department after saying Phelps repeatedly missed payment deadlines.
“I’m very thankful that the authorities took care of this,” said Lynch, who learned his car had been sold to someone in Florida. “I told the police department several times that if there was a grand jury, I wanted to be the first.”
Susan DiNardi, another former customer, filed a lawsuit against FSD Hot Rod Ranch in October.
DiNardi, who lives in Virginia, claims the dealer failed to pay $50,000 after transporting her 1956 Chevrolet to Eustis.
DiNardi’s daughter, Amy Varela, believes FSD Hot Rod Ranch sold her mother’s vintage car less than four months later.
“I know this because there was a complaint [Phelps’s] A Google page from a guy talking about buying a ’56 Chevy Bel Air 210 and describing our vehicle,” Varela said. “This is our car.”
That Google review, which DiNardi entered as evidence in his lawsuit, shows that the buyer never received ownership of the vehicle.
“I have the title,” Varela said. “Phelps asked us to send the title. But we didn’t send the title because we never got our money.”
DiNardi and Lynch are among the 96 creditors Phelps lists in bankruptcy filings.
More than a dozen of those creditors met with Phelps and a bankruptcy court trustee during a Zoom video conference last week as they began the process of identifying funds that might be available.
Phelps did not speak during the brief meeting.
Two representatives of the US Department of Justice Trustee Program also joined the video conference. In addition to ensuring compliance with bankruptcy laws and procedures, the federal program also helps investigate bankruptcy fraud and abuse.
Phelps is now unemployed, with no money in savings and no other sources of income, according to his bankruptcy filings.
“Where’s the money?” Varela asked. “Where did he spend that money?”
Besides his Eustis ranch, one of Phelps’ only other major assets is a 2011 Jaguar XJL valued at $7,500 that Sobol co-owns.
In a brief phone call with News 6, Sobol denied having anything to do with the classic car dealership.
“I have nothing to do with FSD Hot Rod Ranch,” Sobol said. “I have no knowledge of this business.”
In an August 2022 photo posted on Sobol’s publicly viewable Facebook page, Sobol can be seen wearing a T-shirt with the FSD Hot Rod Ranch logo.
“I’m now the Director of National Promotions & Merchandising and I have to organize all these shows we have planned in the US for 2023 and build a line of branded merchandise,” the photo’s caption reads.
Sobol and her attorney did not respond to email messages from News 6 asking about this Facebook post.
In a promotional video on Pegasus Manor’s website, Sobol describes her previous work as an international fashion model and founder of Miami Fashion Week before opening the wedding venue.
“And with my partner and the love of my life, I’m embarking on my next entrepreneurial venture as the venue owner and director of what is the most magnificent and new venue Central Florida has ever seen,” said Sobol as images of Phelps The video shows the home and an unidentified couple riding in a vintage Ford Mercury.
In a brief phone call with News 6, Sobol talked about her company’s use of the Phelps ranch.
“I’m renting the property,” Sobol said.
When a News 6 reporter asked Sobol if he was paying rent to Phelps, the phone call abruptly ended. Sobol and her attorney did not respond to follow-up emails from News 6.
Phelps indicated in bankruptcy filings that he received no income from rental properties.
“If [Sobol] is leasing the space, that’s great,” Varela said. “Because then that’s income he can pay his creditors.”
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