Restless Media GmbH V. Johnson Et Al

Case Background

Restless Media GmbH (“Plaintiff”) filed a racketeering lawsuit under the RICO Act alleging fraud against Thomas E. “Ted” Johnson, Milestone Motorcars Sales LLC, Milestone Motorcars LLC (the “Johnson Defendants”), Richard Cole and Rick Cole Auctions, Inc. (the “Cole Defendants”), and Donald E. Williams and the Black Hawk Collection (the “Williams Defendants”).

Restless Media GmbH (RMG), is a German corporation managed by Dr. Florian Lechner, with its principal place of business in Grünwald, Germany. RMG is owned by Bradley Birkenfeld, a resident of Malta, and holds luxury cars on his behalf. On December 28, 2021, Mr. Birkenfeld transferred his rights to a Bugatti and Ferrari, including legal claims, to RMG. Previously, he had transferred rights to three other luxury vehicles in 2021.

Defendant Thomas E. “Ted” Johnson is a Florida resident and the owner of Milestone Motorcars LLC and Milestone Motorcars Sales LLC, both of which are involved in vintage car sales and restoration. Defendants Richard Cole and Rick Cole Auctions Incorporated, based in Texas, also deal in vintage cars. Defendant Donald E. Williams and The Blackhawk Collection, based in California, specialize in purchasing and selling vintage cars.

The Plaintiff accused the Defendants of coordinating a scheme to commit fraud through the sale and purchase of vintage cars. The lawsuit alleged that the Defendants committed fraud by misrepresenting the sale price of a Bugatti and a Ferrari, engaging in hidden transactions, and forging invoices.

The lawsuit was filed in the United States District Court, Florida Southern (West Palm Beach). The case was assigned to Magistrate Judge Shaniek Mills Maynard and referred to Magistrate Judge Ryon M. McCabe (Settlement). [Case number: 9:22cv80120]

Cause

The Defendants allegedly misrepresented the sales prices of a 1935 Bugatti Type 57 (owned by the Plaintiff) and a 1973 Ferrari Daytona (purchased on Plaintiff’s behalf). The Defendants engaged in hidden transactions, including undisclosed payments between them, and used forged invoices. They also failed to inform the Plaintiff of key details, actively deceiving the Plaintiff.

In August 2021, the Johnson Defendants sold the Bugatti to the Williams Defendants without informing the Plaintiff or obtaining permission. They used a “dealer-to-dealer” transaction instead of a proper title transfer. Two months later, they notified the Plaintiff of the sale but misrepresented the price. Upon investigation, Plaintiff discovered that the Bugatti was sold for $1.5 million, not the $750,000 represented by the Johnson Defendants.

Meanwhile, the Johnson Defendants were supposed to help the Plaintiff purchase a specific Ferrari but instead bought a different one without approval. They misrepresented the purchase price of the Ferrari as $750,000, while the actual price was $575,000. The Johnson Defendants later admitted that the true price was lower but claimed the difference was covered by “other consideration,” which the Plaintiff was never informed about.

When confronted, the Johnson Defendants dismissed the Plaintiff’s concerns, suggesting that such transactions were common practice and that the actual sales prices were unimportant.

Damages

Restless Media GmbH, the Plaintiff, sought the following relief from the Court: a declaratory judgment that the Defendants’ sale of the Bugatti, and any subsequent sales, were unlawful, void, and invalid and that the Plaintiff was the rightful owner of the Bugatti, which should be returned to them.

The Plaintiff also requested an award of damages, to be determined at trial, but no less than $1,500,000, along with exemplary and punitive damages. Additionally, the Plaintiff sought treble damages, as authorized by statute, interest on the awarded amount at the highest rate allowed by law, attorneys’ fees, and the costs incurred in bringing the lawsuit. Finally, the Plaintiff requested any other relief the Court deemed just and appropriate.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Restless Media GmbH
    • Counsel for Plaintiff(s): Christopher Martin Lomax | Yolanda P. Strader
  • Defendant(s): Thomas E Johnson | Milestone Motorcars Sales LLC | Milestone Motorcars LLC | Richard Cole | Rick Cole Auctions, Inc. | Donald E. Williams | Black Hawk Collection
    • Counsel for Defendant(s): Debra Daumit Klingsberg | George William Kramer | Mitchell Warren Mandler

Claims

Count 1: Fraud

The Plaintiff claimed that the Johnson Defendants committed fraud by selling the Bugatti and purchasing the Cole Ferrari without authorization. The Defendants misrepresented their actions, falsely asserting they acted on the Plaintiff’s behalf. They sold the Bugatti under deceptive circumstances, using a dealer-to-dealer transaction instead of properly transferring the title, and did not inform Plaintiff of the transactions until two months later.

Count 2: Breach of Contract

The Plaintiff argued that the Johnson Defendants breached a written agreement to act as his agent in selling the Bugatti. They failed to notify him of a $1.5 million offer and incurred unauthorized repair costs. As a result, the Plaintiff suffered damages, including lost revenue from the sale of the Bugatti and the Ferrari.

Count 3: Breach of Fiduciary Duty

The Plaintiff contended that the Johnson Defendants breached their fiduciary duty as agents in the sale of the Bugatti and purchase of the Cole Ferrari. They misrepresented both the sale price of the Bugatti and the purchase price of the Ferrari, using a forged invoice. They failed to obtain proper authorization from the Plaintiff and misled him about the Cole Ferrari’s purchase.

Count 4: Aiding and Abetting Breach of Fiduciary Duty

The Plaintiff alleged that the Williams and Cole Defendants aided and abetted the Johnson Defendants in breaching their fiduciary duty. The Cole Defendants induced the breach by accepting the Bugatti without proper title, and the Williams Defendants participated by selling the Bugatti without title.

Count 5: Violation of Florida’s Deceptive and Unfair Trade Practices Act

Plaintiff claimed that the Johnson Defendants engaged in deceptive practices by misrepresenting the prices of the Bugatti and Cole Ferrari, forging invoices, and failing to disclose key information. These actions harmed the Plaintiff, who suffered financial loss.

Count 6: Civil Conspiracy

The Plaintiff asserted that the Cole, Williams, and Johnson Defendants conspired to defraud him through fraudulent transactions involving the Bugatti and Cole Ferrari. They misrepresented prices and engaged in unauthorized sales.

Count 7: Violation of the RICO Act

The Plaintiff alleged that the Defendants violated the RICO Act by engaging in a pattern of racketeering activity, including mail and wire fraud. They used deceit to retain profits from the sale of the Bugatti and the purchase of the Cole Ferrari.

Count 8: Declaratory Judgment

The Plaintiff claimed ownership of the Bugatti and argued that the Defendants sold it without authorization. He sought a declaration that the sale was fraudulent and requested the return of the Bugatti.

Count 9: Unjust Enrichment

The Plaintiff argued that the Johnson Defendants wrongfully benefited from the sale of the Bugatti. The Defendants sold the Bugatti for $1.5 million and used the proceeds for their own gain.

Count 10: Money Had and Received

The Plaintiff alleged that the Johnson Defendants received $1.5 million from the sale of the Bugatti, which should have benefited him. Instead, the Defendants used the funds for their own benefit and failed to return the money.

Defense

The Johnson Defendants, Thomas E. “Ted” Johnson, Milestone Motorcars Sales LLC, and Milestone Motorcars LLC, denied allegations in this fraud lawsuit and argued that Plaintiff Restless Media GmbH failed to provide sufficient facts to hold Thomas Johnson personally liable, citing Florida law on piercing the corporate veil. They also claimed that the unjust enrichment claim was meritless, as Plaintiff’s monetary damages were sufficient. The Defendants maintained they acted in good faith, without fraudulent intent or collusion, and denied causing harm to the other Defendants. They argued that their actions did not support a RICO claim, were not criminal, and did not harm Plaintiff’s business. They also asserted that Plaintiff lacked standing to sue the Cole Defendants.

On September 13, 2024, the Williams Defendants were dismissed from the case. On December 4, 2024, the  Cole Defendants’ Motion for Summary Judgment was granted. The jury trial proceeded solely against the Johnson Defendants.

Jury Verdict

On December 19, 2024, the jury awarded damages to Plaintiff Restless Media GmbH on multiple counts against the Defendants. The verdict was entered in favor of the Plaintiff and against Defendants Thomas E. Johnson, Milestone Motorcars LLC, and Milestone Motorcar Sales, LLC for fraud, with damages totaling $1,170,000.

The Plaintiff was also awarded $175,000 in damages for breach of contract against the same Defendants.

Additionally, the jury found Defendants Thomas E. Johnson and Milestone Motorcar Sales, LLC liable for breach of fiduciary duty and awarded damages of $44,000.

For the violation of the Florida Deceptive and Unfair Trade Practices Act, the jury awarded the Plaintiff $105,000 in damages against Defendants Thomas E. Johnson and Milestone Motorcar Sales, LLC.

Finally, the Plaintiff was entitled to recover $375,000 for money had and received from Defendants Thomas E. Johnson and Milestone Motorcar Sales, LLC, with no recovery from Milestone Motorcars LLC.

The verdict totaled $1,869,000. The execution of these sums was ordered in the final judgment passed on January 6, 2025, by  Shaniek Mills Maynard.

Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com