1 

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

MIAMI DIVISION 

 

In re: 

Austin Brode Howard, 

Debtor. 

_______________________________/ 

Chris M. Carlos, 

as trustee for the Chris M. Carlos Revocable 

Trust dated May 28, 2008, as amended and 

restated, 

Plaintiff, 

v. 

Austin Brode Howard, 

Defendant. 

_______________________________/ 

Chapter 7 

Case No. 22-11866-LMI 

Adv. Pro. No. 22-_________-LMI 

COMPLAINT

Plaintiff, Chris M. Carlos (“Carlos”), as trustee for the Chris M. Carlos Revocable Trust 

dated May 28, 2008, as amended and restated (the “Carlos Trust”) sues Defendant Austin Brode 

Howard (“Howard” or “Debtor”) pursuant to section 523(a) of title 11 of the United States Code, 

11 U.S.C. § 101 et seq. (“Bankruptcy Code”) and Rules 4007 and 7001 of the Federal Rules of 

Bankruptcy Procedure (“Bankruptcy Rules”), seeking to except from discharge certain debts owed 

by Mr. Howard to the Carlos Trust. In support thereof, the Carlos Trust alleges as follows: 

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NATURE OF ACTION, PARTIES, JURISDICTION, AND VENUE

1. This is an action seeking a determination that certain debts owed to the Carlos Trust 

from Mr. Howard are non-dischargeable pursuant to section 523 of the Bankruptcy Code. The 

procedural predicates for the relief sought are Bankruptcy Rules 4003 and 7001. 

2. Mr. Carlos is an individual resident of Georgia. He is the sole trustee of the Carlos 

Trust, and is authorized to sue on the trust’s behalf to protect trust property. See, e.g., Fla. Stat. § 

736.0816(23). 

3. Mr. Howard is an individual resident of Miami-Dade County, Florida, as alleged in 

his bankruptcy petition. 

4. This Court has jurisdiction over this adversary proceeding under 28 U.S.C. § 

1334(b) and 28 U.S.C. § 157(a). 

5. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(I). 

6. Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409. 

GENERAL ALLEGATIONS

I. Debtor Fraudulently Withheld Funds and Property from the Carlos Trust 

7. At all relevant times, Howard owned, and was the sole member, manager and/or 

shareholder of The Motorcar Collection, LLC, a Georgia limited liability company (“Motorcar 

Atlanta”), The Motorcar Collection Miami Corp., a Florida corporation (“Motorcar Miami”), and 

Collection Miami, LLC, a Florida limited liability company (“Collection Miami”) (collectively, 

“Alter Egos”). Motorcar Atlanta and Motorcar Miami operated as licensed motor vehicle dealers 

in Georgia and Florida, respectively; Howard also used Collection Miami to purchase and sell 

motor vehicles, but he never obtained a Florida dealer license for that entity. Howard consciously 

used the Alter Egos interchangeably and as instrumentalities of fraud by withholding vehicle titles 

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and funds due to the Carlos Trust, and secretly used those titles as collateral to illegally obtain 

financing for his businesses. 

8. The Carlos Trust engaged Howard to purchase and sell multiple luxury vehicles on 

behalf of the trust. Howard acting individually and using his various corporate entities, bought and 

sold vehicles for the Carlos Trust and also performed vehicle related services, including but not 

limited to vehicle maintenance, vehicle cleaning, vehicle upgrades and accessories, and vehicle 

title and registration services for the Carlos Trust’s vehicles. 

9. In November 2020, Howard represented that he could locate and sell to the Carlos 

Trust a black Rolls Royce Phantom with a host of unique features. According to Howard, the 

Carlos Trust needed to “act quickly” and wire the full purchase amount to Howard’s company, 

Motorcar Miami, because the specific vehicle was the only one available with all of the options 

the Carlos Trust desired. 

10. On November 20, 2020, at the request and direction of Howard, the Carlos Trust 

wired $563,835.00 to Motorcar Miami’s bank account. See Exhibit 1. Howard represented that this 

amount was the full purchase price for a black 2020 Rolls Royce Phantom (VIN 

SCATT6C06LU201876) (“2020 RR Phantom”), as reflected in the written Bill of Sale between 

the Carlos Trust (buyer) and Motorcar Miami (seller). See Exhibit 2. Howard admits that his 

company received $563,835.00 and never returned any of the funds to the Carlos Trust, but he now 

wrongly claims that the purchase transaction was never completed. 

11. After wiring the full purchase price to Howard’s company, the Carlos Trust took 

possession of the 2020 RR Phantom. Yet Howard never intended to deliver title to the Carlos Trust. 

Soon after the purchase, but unbeknownst to the Carlos Trust, Howard secretly applied to the 

Florida Department of Highway Safety and Motor Vehicles (“FL DMV”) to have the title placed 

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in the name of Collection Miami—one of the companies owned by Howard—in direct conflict 

with Howard’s repeated representations that title would be issued to the Carlos Trust. Collection 

Miami had no affiliation with the transaction, and did not receive or pay any funds in connection 

with the purchase. Nor did Collection Miami pay any consideration in connection with Howard 

illicitly placing title to the 2020 RR Phantom in the name of Collection Miami. Howard never 

delivered title to the 2020 RR Phantom to the Carlos Trust. 

12. The Carlos Trust was forced to sue Howard and his Alter Egos in Florida state court 

in June 2021, as detailed in Section II below. The full scope of Howard’s fraudulent scheme was 

uncovered during discovery in that litigation. Third party discovery revealed that Howard had 

orchestrated an elaborate scheme, involving multiple vehicles, in which he obtained hundreds of 

thousands of dollars in floor plan financing through his Alter Egos and pledged vehicles that did 

not belong to him or his companies as collateral for the loans, while withholding legal title and 

sales proceeds from the Carlos Trust. 

13. As just one example of the fraudulent scheme, the true reason why Howard failed 

and refused to deliver free and clear title to the Carlos Trust was because he had secretly used it as 

collateral to obtain a $250,000 loan from a company called NextGear Capital (“NextGear”) on or 

about March 10, 2021. To obtain the money, Howard falsified documents to depict sham 

transactions and made numerous misrepresentations and omissions involving the 2020 RR 

Phantom to make it appear that his company owned and possessed the vehicle. Howard secretly 

titled the vehicle in his company’s name and used the title to obtain floor plan financing for his 

own benefit. Howard never disclosed to the Carlos Trust that he had floor planned the 2020 RR 

Phantom, or that he had given NextGear a security interest in the vehicle. The Carlos Trust later 

found out that Howard previously used the same scheme for other cars owned by the Carlos Trust. 

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14. Months after the Carlos Trust paid for the 2020 RR Phantom, in early March 2021, 

Howard took possession of the 2020 RR Phantom under false pretenses, claiming that he would 

have a “black out” service performed on the vehicle. Howard never returned the vehicle to the 

Carlos Trust, despite Carlos’s repeated demands, and never returned the $563,835.00 paid by the 

Carlos Trust for the vehicle. 

15. Instead, soon after taking possession of the 2020 RR Phantom, Howard secretly 

provided pictures of the vehicle to NextGear to demonstrate current possession of the vehicle and 

falsely claim that he could rightfully use it as collateral. At the same time, he also secretly signed, 

or arranged for the signing of, the title of the vehicle from Collection Miami to Motorcar Atlanta 

to provide NextGear with fraudulent proof of ownership, to the detriment of the Carlos Trust’s 

ownership interest. Collection Miami and Motorcar Atlanta did not exchange consideration as part 

of this wrongful attempt to transfer title. Howard submitted additional false documents to 

NextGear, including a fake bill of sale to Motorcar Atlanta. In exchange for a security interest in 

the collateral, NextGear loaned Howard’s entity, Motorcar Atlanta, $250,000.00. As of the date of 

the fraudulent collateralization of the Carlos Trust’s car, Howard had never provided any written 

notice to the Carlos Trust that the 2020 RR Phantom purchase transaction was not complete 

because of unpaid taxes. None of the NextGear loan was ever paid to the Carlos Trust, nor was it 

otherwise used for the payment of taxes or for the Carlos Trust’s benefit. 

16. The Carlos Trust continued to demand return of the vehicle and obtained legal 

counsel to assist with these efforts. Howard refused to return the 2020 RR Phantom, despite failing 

to invoke or comply with the requirements of Florida’s Mechanics Lien procedures. Howard never 

offered, nor agreed, to cooperate in arranging for the Carlos Trust to make direct payment to the 

Florida DMV for any sales or title transfer taxes as permitted by Florida law. As the principal of a 

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licensed motor vehicle dealer, Howard was well-aware that a buyer can pay such taxes directly 

(Howard eventually cooperated in facilitating the Carlos Trust’s direct payment of taxes in 

connection with another Carlos Trust car, a Ferrari, pursuant to the Consent Order). Howard 

withheld this information from the Carlos Trust. 

17. Howard then concocted another scheme to sell the 2020 RR Phantom a second time 

in order to obtain funds to pay off the NextGear loan. In May 2021, Howard purportedly sold the 

2020 RR Phantom, listing Motorcar Miami as the seller on the bill of sale, to a third party that paid 

$450,000.00 to Collection Miami’s bank account. Howard has failed to produce any documents 

substantiating transfer of title from Motorcar Atlanta to Motorcar Miami, or explaining Collection 

Miami’s role in the sham transaction. Howard then used the proceeds from the second sale to pay 

off the NextGear loan, without ever returning any of the money taken from the Carlos Trust for 

the exact same vehicle months earlier. Howard admitted to using some of the proceeds to hire 

personal security and to pay for lawyers hired to defend Howard individually and his businesses 

in claims brought by the Carlos Trust. He claimed to be still personally holding some of the sale 

proceeds, as of June 23, 2021. 

18. Specifically as to the 2020 RR Phantom, Howard engaged in the following 

fraudulent conduct: 

a. Howard represented that he could deliver a unique 2020 RR Phantom with all of 

the features desired by the Carlos Trust. Howard took $563,835.00 from the Carlos 

Trust for the purchase of the 2020 RR Phantom, but purposely converted the vehicle 

and the Carlos Trust payment for his own benefit, thereby failing and refusing to 

deliver marketable title to the Carlos Trust. 

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b. Howard secretly titled the 2020 RR Phantom in the name of his entity Collection 

Miami, even though the Carlos Trust had paid Motorcar Miami in full for the 

vehicle. He later secretly transferred the title from Collection Miami to Motorcar 

Atlanta, and created fraudulent sale documents relating to this sham transaction, 

falsely indicating that Collection Miami was paid $399,500.00, even though no 

consideration was exchanged between Collection Miami and Motorcar Atlanta. 

c. Howard falsely represented to the Carlos Trust that he would deliver title, and gave 

fake excuses when confronted with the title issues involving the 2020 RR Phantom. 

d. Howard created sham transaction documents among his Alter Egos to conceal the 

fraudulent title scheme. 

e. The Carlos Trust later learned that the true reason for these sham transactions and 

refusals to deliver title was Howard’s secret floor plan financing arrangement with 

NextGear, using the 2020 RR Phantom as collateral for his own personal benefit. 

f. Howard actively hid the true details of these and other fraudulent transactions from 

the Carlos Trust, and from the Court in the State Court Action, as described below, 

and has never returned the $563,835.00 paid by the Carlos Trust for the 2020 RR 

Phantom. 

g. Howard secretly sold the 2020 RR Phantom to a second buyer for $450,000.00, and 

never paid any of those proceeds to the Carlos Trust, nor used the proceeds for the 

Carlos Trust’s benefit. 

h. Howard directly and personally participated in the fraudulent conduct, and the 

Carlos Trust justifiably relied on Howard’s misrepresentations. 

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19. As reflected in a credit invoice dated February 9, 2021, Howard also owes the 

Carlos Trust $91,910.00 from the sales of two additional luxury vehicles—a 2011 Porsche and a 

2004 Mercedes Benz that Howard was supposed to sell on behalf of the Carlos Trust. See Exhibit 

3. Howard, through his Alter Egos, sold the two vehicles at an auction, received payment (or a 

credit for payment) for both vehicles at some time between November 2020 and January 2021, but 

failed to turn over the sales proceeds due to the Carlos Trust. 

20. The balance owed by Howard to the Carlos Trust in connection with the purchase 

of the 2020 RR Phantom and the sales of the 2011 Porsche and 2004 Mercedes Benz is at least 

$655,745.00, plus interest and attorney’s fees and expenses (the “Vehicle Debt”). 

II. The State Court Proceedings 

21. The Carlos Trust filed a Verified Complaint against Howard and the Alter Egos in 

Florida state court on June 14, 2021. The complaint asserted numerous causes of action, including 

conversion, replevin, breach of contract, quiet title, statutory claims under Florida’s Deceptive and 

Unfair Trade Practices Act and Florida’s Motor Vehicle Repair Act, and declaratory and injunctive 

relief. See Carlos v. Howard et al., Case No. 2021-013915-CA-01, pending in the Circuit Court 

for the Eleventh Judicial Circuit in and for Miami-County, Florida, Complex Business Division 

(“the State Court Action”).1 

22. One week later on June 21, 2021, the state court entered an Agreed Stipulated Final 

Consent Order (“Consent Order”) granting injunctive relief to the Carlos Trust, requiring in part 

that Howard and the Alter Egos provide “any and all title, sale, transfer, or other documentation 

relating to the 2020 RR Phantom,” and to account for the sales proceeds. See Exhibit 4. 

                                                            

1

 After uncovering the extent of Howard’s fraudulent schemes, the Carlos Trust filed an Amended 

Complaint on February 2, 2022, adding claims for fraudulent misrepresentations and omissions, 

and for piercing the corporate veil. 

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23. Despite agreeing to provide documents and information, Howard and his Alter 

Egos continued to obstruct the Carlos Trust’s reasonable attempts to recover the 2020 RR Phantom 

or $563,835.00 paid for the purchase of the vehicle. The Carlos Trust was forced to file a Motion 

for Contempt after Howard and his Alter Egos disregarded the requirements of the Consent Order 

and refused to provide financial records and other critical documents related to the purported 

second sale of the 2020 RR Phantom to a third party buyer. 

24. After multiple hearings, including an evidentiary hearing, the state court held 

Howard, Motorcar Miami, and Collection Miami in civil contempt, finding that they clearly 

violated the Consent Order by refusing to provide access to “readily available information.” 

25. The Amended Contempt Order, entered by the state court on October 22, 2021, 

specifically described a number of examples of Howard intentionally withholding key information. 

See Exhibit 5. It awarded the Carlos Trust attorneys’ fees and costs, in an amount to be determined, 

and ruled that Howard and his entities were jointly and severally liable. In connection with the 

contempt, the Carlos Trust incurred $145,776.50 in fees and $13,943.75 in costs, for a total 

recoverable amount of $159,720.25 (the “Contempt Debt”). 

26. Hours before a hearing to determine the amount of contempt sanctions against 

Howard and his Alter Egos, Howard filed a petition for relief under Chapter 7 of the Bankruptcy 

Code and asked for a stay of all proceedings in the State Court Action. 

III. The Bankruptcy Case 

27. On March 8, 2022, Howard filed a voluntary petition for relief under chapter 7 of 

the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida, 

initiating the plenary bankruptcy case styled In Re Howard, Case No. 22-11866-LMI. 

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28. On March 21, 2022, Howard filed a Summary of Assets and Liabilities, identifying 

the Alter Egos as “codebtors” on Schedule H, noting that he owned 100% of each entity. DE 13-1 

at 13, 31. The summary also claimed that Motorcar Miami “is owed $106,635.00 by Chris M. 

Carlos, as trustee for the Chris M. Carlos Revocable Trust.” Id. This amount is purportedly based 

on a sham invoice only delivered to the Carlos Trust on or about April 12, 2021, even though it 

fraudulently indicates an earlier date, and despite repeated requests, Howard has failed and refused 

to produce a single backup document substantiating any of the items listed in the sham invoice. 

Further, the Debtor’s Summary of Assets and Liabilities failed to mention the $91,910.00 that is 

admittedly due to the Carlos Trust, as an offset, or any additional amounts owed to the Carlos 

Trust. 

IV. Howard’s Wholly Owned and Controlled Companies Were Alter Egos 

29. Motorcar Miami was a Florida corporation licensed in Florida by the Florida 

Department of Highway Safety and Motor Vehicles as a motor vehicle dealer. Howard was the 

only person identified in Florida’s corporate records as an officer or director of the corporation. 

30. Howard established Collection Miami in September 2020 as a Florida limited 

liability company and dissolved the company just one year later. Although the company was not 

licensed as a motor vehicle dealer with the Florida Department of Highway Safety, Howard falsely 

held out Collection Miami as a licensed dealer. Howard testified under oath that he intended to 

“merge and close out The Motorcar Collection Miami Corp. and transfer it all to the Collection 

Miami” because they were basically the same. See 2004 Examination Transcript at p.19. 

31. Motorcar Atlanta was a Georgia limited liability company operating in Georgia and 

Florida. Howard was the Registered Agent and Authorized Person listed on the company’s filings. 

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Motorcar Atlanta engaged in various transactions, including selling vehicles through auctions and 

obtaining floor plan financing on vehicles through NextGear Capital. 

32. Howard’s bankruptcy filings indicate that the Alter Egos were each 100% owned 

by Howard. 

33. Howard exercised unilateral control over the Alter Egos, and in connection with 

each, he repeatedly disregarded and abused the corporate form. 

34. Despite numerous discovery requests in the State Court Action, Howard and the 

Alter Egos failed to produce any corporate records, ledgers, corporate resolutions, corporate 

minutes, recent tax returns, or other documents that would evidence observance of corporate 

formalities. 

35. Howard engaged in sham transactions, without consideration, between the Alter 

Egos. There are numerous examples of pre-petition, substantial cash withdrawals and transfers 

between bank accounts and credit card accounts belonging to the Alter Egos, and/or Howard’s 

personal accounts, none of which was supported by consideration. 

36. Furthermore, in connection with the 2020 RR Phantom, Motorcar Miami is the 

entity that received the $563,835.00 cash payment from the Carlos Trust and is listed on the Bill 

of Sale. Yet Howard wrongly placed title in the name of Collection Miami and later created a fake 

document titled Notice of Sale and/or Bill of Sale falsely indicating a sale of the vehicle from 

Collection Miami to Motorcar Atlanta, even though Howard admits no consideration was 

exchanged between the two entities. A copy of the 2020 RR Phantom title apparently reflected a 

transfer to “the Motorcar Collection,” and Howard used this transfer to obtain financing from 

NextGear. Yet when Howard purported to re-sell the car to a third party, he collected payment 

through Collection Miami’s bank account. 

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37. Howard also co-mingled personal funds with funds of the Alter Egos. He used 

corporate bank and credit card accounts for the Alter Egos to pay for personal, non-business 

expenditures, including but not limited to substantial payments on his American Express account, 

personal travel expenses for Howard and persons unaffiliated with the businesses, personal food 

and beverage, and personal retail shopping. The bank accounts for each of the Alter Egos also 

reflect thousands of dollars in cash withdrawals directly to Howard, as the only authorized 

signatory for the Alter Egos’ accounts. Howard never produced any documentation evidencing 

the actual use of this cash nor substantiating that all the cash was used for valid business purposes 

connected to the particular Alter Ego entity. 

COUNT I 

(EXCEPTION TO DISCHARGE UNDER 11 U.S.C. § 523(a)(2)(A) FOR MONEY OBTAINED BY 

FALSE PRETENSES, FALSE REPRESENTATIONS, OR ACTUAL FRAUD) 

38. The Carlos Trust sues Debtor and seeks a determination that the Vehicle Debt is 

non-dischargeable pursuant to section 523 of the Bankruptcy Code, and for a money judgment, 

and in support thereof, the Carlos Trust incorporates the allegations set forth in paragraphs 1 

through 37. 

39. The total amount of money obtained by Debtor from the Carlos Trust through false 

pretenses, false representations, or actual fraud relating to the Vehicle Debt is at least $ 655,745.00, 

plus interest, attorney’s fees, and expenses. 

40. On multiple occasions, Debtor failed to deliver free and clear title to vehicles 

purchased by the Carlos Trust, despite receiving and failing to return payment for the vehicles. 

Rather than delivering title to the Carlos Trust, Howard improperly used the Carlos Trust’s vehicle 

titles to fraudulently obtain floor plan financing from a third-party lender, without ever disclosing 

those proceeds to the Carlos Trust. The fraudulent financing deals resulted in NextGear obtaining 

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a security interest in vehicles owned by the Carlos Trust, without the knowledge or consent of the 

Carlos Trust and without any benefit accruing to the Carlos Trust, and directly interfered with 

rightful delivery of title to the Carlos Trust. Howard also obtained possession of one of the vehicles 

from the Carlos Trust, a 2020 Rolls Royce Phantom, through false pretenses as part of the 

fraudulent scheme. 

41. Under section 523(a)(2)(A) of the Bankruptcy Code, “[a] discharge . . . does not 

discharge an individual debtor from any debt . . . for money, property, services, or an extension, 

renewal, or refinancing of credit, to the extent obtained by . . . false pretenses, a false 

representation, or actual fraud.” 

42. Debtor injured the Carlos Trust by engaging in an elaborate, fraudulent scheme and 

making false representations to deprive the Carlos Trust of the full use and enjoyment of its 

property and money relating to multiple vehicles. 

43. The Carlos Trust reasonably and justifiably relied on Howard’s misrepresentations 

regarding the status of vehicle titles and reasonably believed it was the lawful owner of vehicles 

purchased through Howard and funds derived from the sales of vehicles sold by Howard on behalf 

of the Carlos Trust. Debtor took detailed, active steps to hide the fraudulent scheme from the Carlos 

Trust. 

44. Debtor’s actions were with full knowledge of the fraudulent scheme and with 

knowledge of the falsity of representations in connection with the scheme, or with reckless 

disregard for the truth or falsity of the representations. 

45. Debtor’s fraud has resulted in the loss of property to the Carlos Trust. 

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46. Therefore, the Vehicle Debt is non-dischargeable pursuant to 11 U.S.C. § 

523(a)(2)(A) because it is a debt for money obtained by false pretenses, false representations, or 

actual fraud. 

Wherefore, the Carlos Trust respectfully requests that this Court enter judgment in its favor 

of and against Defendant determining that the Vehicle Debt is non-dischargeable, and that the 

Carlos Trust is entitled to a money judgment in an amount not less than $655,745.00, plus prejudgment and post-judgment interest and attorneys’ fees and expenses, and any other and further 

relief that this Court deems just and proper. 

COUNT II 

(EXCEPTION TO DISCHARGE UNDER 11 U.S.C. § 523(a)(4) FOR FIDUCIARY DEBTS,

EMBEZZLEMENT, OR LARCENY ) 

47. The Carlos Trust sues Debtor and seeks a determination that the Vehicle Debt is 

non-dischargeable pursuant to section 523 of the Bankruptcy Code, and for a money judgment, 

and in support thereof, the Carlos Trust incorporates the allegations set forth in paragraphs 1 

through 37. 

48. Debtor is indebted to the Carlos Trust in connection with the Vehicle Debt in an 

amount equal to at least $ 655,745.00, plus interest and attorney’s fees and expenses. 

49. Under section 523(a)(4) of the Bankruptcy Code, “[a] discharge . . . does not 

discharge an individual debtor from any debt . . . for fraud or defalcation while acting in a fiduciary 

capacity, embezzlement, or larceny.” 

50. The Carlos Trust purchased a 2020 Rolls Royce Phantom from Debtor through 

Debtor’s entity The Motorcar Collection Miami Corp. in November 2020 for $563,835.00. In 

March 2021, the Carlos Trust entrusted the vehicle to Debtor to obtain services described by 

Debtor as a “black out,” in which the chrome would be coated black. Debtor told Carlos the service 

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would take 10 days, but the Carlos Trust never saw the 2020 RR Phantom again. Instead, Debtor 

sold the 2020 RR Phantom to a third-party dealer for $450,000.00, and never returned any of the 

purchase price previously paid by the Carlos Trust, and never forwarded any of the NextGear loan 

proceeds or the $450,000.00 sales proceeds to the Carlos Trust. 

51. Debtor also received funds in connection with the sale of two cars owned by the 

Carlos Trust. Debtor was required to turn those funds over to the Carlos Trust, but has repeatedly 

refused to do so. 

52. Debtor’s actions constitute embezzlement because Debtor fraudulently 

appropriated property that was entrusted to him by the Carlos Trust for Debtor’s own benefit. 

Alternatively, the actions constitute larceny because Debtor fraudulently and wrongfully took the 

property with the intent to convert it to his own use without consent. 

53. The disputed amounts were deposited into bank accounts accessible only by 

Debtor. 

54. Debtor actively disbursed the funds for his personal benefit, without remitting them 

to the Carlos Trust. 

55. Therefore, the Vehicle Debt is non-dischargeable under 11 U.S.C. § 523(a)(4) 

because it resulted from embezzlement or larceny. 

Wherefore, the Carlos Trust respectfully requests that this Court enter judgment in its favor 

of and against Defendant determining that the Vehicle Debt is non-dischargeable, and that the 

Carlos Trust is entitled to a money judgment in an amount not less than $655,745.00, plus prejudgment and post-judgment interest and attorneys’ fees and expenses, and any other and further 

relief that this Court deems just and proper. 

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COUNT III 

(EXCEPTION TO DISCHARGE UNDER 11 U.S.C. § 523(a)(6) FOR 

WILLFUL AND MALICIOUS INJURY) 

56. The Carlos Trust sues Debtor and seeks a determination that the Vehicle Debt is 

non-dischargeable pursuant to section 523 of the Bankruptcy Code, and for a money judgment, 

and in support thereof, the Carlos Trust incorporates the allegations set forth in paragraphs 1 

through 37. 

57. Debtor is indebted to the Carlos Trust in connection with the Vehicle Debt in an 

amount equal to at least $ 655,745.00, plus interest and attorney’s fees and expenses, for the theft 

of the Carlos Trust cars and/or sales proceeds. 

58. Under section 523(a)(6) of the Bankruptcy Code, “[a] discharge . . . does not 

discharge an individual debtor from any debt . . . for willful and malicious injury by the debtor to 

another entity or to the property of another entity.” 

59. Debtor willfully and maliciously injured the Carlos Trust by, among other things, 

receiving funds from the Carlos Trust in the conduct of business on behalf of the Trust, failing to 

use the funds for their intended purposes, converting Trust property for his own use, and selling 

Trust property without permission. Debtor caused deliberate injury that prevented the Carlos Trust 

from recovering a 2020 Rolls Royce Phantom for which it paid $563,835.00. He purposely sold 

the vehicle to a third-party buyer without legal justification, and actively obstructed the Carlos 

Trust’s efforts to locate and regain possession of the vehicle. 

60. Debtor intended to inflict injury on the Carlos Trust or believed that injury was 

substantially likely to occur because of Debtor’s actions. 

61. Debtor’s conduct was wrongful, intentional, necessarily caused injury to the Carlos 

Trust, and was done without just cause. 

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62. Therefore, the Vehicle Debt is non-dischargeable under 11 U.S.C. § 523(a)(6) 

because it is a debt for willful and malicious injury to another entity or property of another entity. 

Wherefore, the Carlos Trust respectfully requests that this Court enter judgment in its favor 

and against Defendant determining that the Vehicle Debt is non-dischargeable, and that the Carlos 

Trust is entitled to a money judgment in an amount of not less than $655,745.00, plus pre-judgment 

and post-judgment interest and attorney’s fees and expenses, in connection with the Carlos Trust 

vehicles and any other and further relief that this Court deems just and proper. 

COUNT IV 

(EXCEPTION TO DISCHARGE UNDER 11 U.S.C. § 523(a)(6) FOR 

WILLFUL AND MALICIOUS INJURY) 

63. The Carlos Trust sues Debtor and seeks a determination that the award of contempt 

fees and costs in the State Court Action is non-dischargeable pursuant to section 523 of the 

Bankruptcy Code, and for a money judgment, and in support thereof, the Carlos Trust incorporates 

the allegations set forth in paragraphs 1 through 37. 

64. Debtor is indebted to the Carlos Trust in an amount equal to at least $159,720.25 

for the attorneys’ fees and costs authorized under the Amended Contempt Order in the State Court 

Action (the “Contempt Debt”). 

65. On June 21, 2021, the state court entered an Agreed Stipulated Final Consent Order 

(“Consent Order”) granting injunctive relief to the Carlos Trust, requiring in part that Howard and 

the Alter Egos provide “any and all title, sale, transfer or other documentation relating to the 2020 

RR Phantom,” and to account for receipt and transfer, and the current location, or any sales 

proceeds. The Consent Order also mandated that Howard execute a statement under penalty of 

perjury describing, among other things, “the circumstances of any sales or attempted sale of the 

2020 RR Phantom,” and the location/disposition of the proceeds of sale. 

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66. Howard willfully and maliciously refused to comply with the Consent Order and 

other orders entered by the state court over the span of several months. 

67. By way of example, none of the documents or records produced by Howard (and 

none of the statements under oath) describe the truth regarding the use of title to the 2020 RR 

Phantom for obtaining secret and unauthorized financing from NextGear, and that the need to 

repay the loan was the primary reason Howard (a) refused to deliver title upon demand in March 

2021; (b) refused to return possession of the 2020 RR Phantom in March and April of 2021 and 

thereafter; and (c) secretly sold the 2020 RR Phantom to a third party in May 2021, paying off the 

NextGear loan and retaining all of the proceeds of sale. 

68. After multiple hearings, including a multi-day evidentiary hearing, the state court 

held Howard, Motorcar Miami, and Collection Miami in civil contempt, specifically rejecting their 

argument that they did not intend to violate the Consent Order, noting that “[a] mere disclaimer by 

the [Defendants] that [their] conduct was willful or intentional does not deprive the court of the 

power to declare it to be contempt...”, citing In re Weinstein, 518 So. 2d 1370, 1374 (Fla. 4th 

DCA 1988). The Amended Contempt Order, entered October 22, 2021, described a number of 

examples of Howard withholding information during testimony, until confronted with contrary 

evidence, and finding that Howard and his entities clearly violated the Agreed Order by refusing 

to provide “readily available information.” 

69. The Amended Contempt Order awarded the Carlos Trust its attorneys’ fees and 

costs in connection with the contempt motion and securing compliance with the Consent Order, in 

an amount to be determined, plus a daily monetary fine of $500, starting September 14, 2021. 

70. The Carlos Trust submitted detailed affidavits, including from its expert, 

quantifying the fees and costs incurred as a result of Howard’s refusal to comply with the Consent 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 18 of 40
19 

Order. The issues relating to the quantity of fees and costs was fully briefed in the State Court 

Action. 

71. Hours before a March 8, 2022 hearing to quantify the amount of fees and costs to 

awarded, Howard filed a petition for relief under Chapter 7 of the Bankruptcy Code and notified 

the state court of the automatic stay of all proceedings. 

72. The amount of recoverable fees to be awarded to the Carlos Trust is $145,776.50, 

and the amount of recoverable costs incurred is $13,943.75, for a total of $159,720.25. 

73. Under section 523(a)(6) of the Bankruptcy Code, “[a] discharge . . . does not 

discharge an individual debtor from any debt . . . for willful and malicious injury by the debtor to 

another entity or to the property of another entity.” 

74. Debtor willfully and maliciously injured the Carlos Trust by, among other things, 

intentionally refusing to comply with the Consent Order and refusing to provide information about 

the transactions involving the Carlos Trust vehicles, the sales proceeds and loan proceeds, and an 

accounting for the dissipation or location of those funds due to the Carlos Trust. By willfully and 

intentionally withholding information, Debtor caused the Carlos Trust to incur substantial 

attorneys’ fees and costs in connection with the motion for contempt and efforts to secure 

compliance with the state court Consent Order. 

75. Debtor intended to inflict injury on the Carlos Trust or believed that injury was 

substantially likely to occur because of Debtor’s actions. 

76. Debtor’s conduct was wrongful, intentional, necessarily caused injury to the Carlos 

Trust, and was done without just cause. 

77. Therefore, the Contempt Debt is non-dischargeable under 11 U.S.C. § 523(a)(6) 

because it is a debt for willful and malicious injury to another entity or property of another entity. 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 19 of 40
20 

Wherefore, the Carlos Trust respectfully requests that this Court enter judgment in its favor 

and against Defendant determining that the Contempt Debt is non-dischargeable and that the 

Carlos Trust is entitled to a money judgment in an amount of not less than $159,720.25, for the 

fees and costs awarded under the Amended Contempt Order, and other sanctions; and any other 

and further relief that this Court deems just and proper. 

COUNT V 

PIERCING THE CORPORATE VEIL 

78. The Carlos Trust sues Debtor and seeks a determination that the Vehicle Debt and 

Contempt Debt are non-dischargeable pursuant to section 523 of the Bankruptcy Code, and in 

support thereof, the Carlos Trust incorporates the allegations set forth in paragraphs 1 through 37. 

79. At all relevant times, Debtor was the 100% owner, and the sole member or 

shareholder of Motorcar Miami, Motorcar Atlanta,2

 and Collection Miami (collectively, the “Alter 

Egos”). 

80. Debtor dominated and controlled the Alter Egos to such an extent that they 

maintained no meaningful separate existence from Debtor. 

81. Debtor has failed to observe proper corporate formalities in his operation of the 

Alter Egos. He failed to keep or maintain normal financial records, and financial records required 

by law. He has commingled his personal and financial affairs with those of the Alter Egos, such 

that it would be impossible or wasteful to attempt to separate the individual from the corporate 

form. 

                                                            

2

 All references to Motorcar Atlanta are solely for purposes of the alter ego claims against the 

Debtor, individually, and the Carlos Trust disclaims any intent or attempt to assert a claim against 

Motorcar Atlanta and to not comply with the automatic stay provisions relating to Motorcar 

Atlanta’s June 22, 2021 bankruptcy filing (not disclosed until September 17, 2021) in the Northern 

District of Georgia, Case No. 21-24734-JWC. 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 20 of 40
21 

82. Debtor used the corporate form for improper purposes, including transferring funds 

between and among bank accounts in the names of the Alter Egos with no exchange of any 

consideration, falsifying purchases of vehicles by and among the Alter Egos, fraudulently 

obtaining loans in connection with such sales, and falsifying documents in connection with the 

fraud. 

83. Debtor’s fraudulent or improper use of the corporate form caused injury to the 

Carlos Trust because Howard used funds obtained from the Carlos Trust to perpetrate this fraud 

without the Carlos Trust’s knowledge, and dissipated proceeds of sales from cars belonging to the 

Carlos Trust, without accounting for such funds or paying amounts due to the Carlos Trust. 

Wherefore, the Carlos Trust respectfully requests the Court to enter a judgment against 

Debtor Howard, pierce the corporate veil of the Alter Egos, and declare that the Debtor be held 

liable to the Carlos Trust for the Debtor’s and the Alter Egos’ wrongdoing. 

Dated: June 21, 2022 Respectfully submitted, 

STEARNS WEAVER MILLER WEISSLER

ALHADEFF & SITTERSON, P.A. 

Museum Tower, Suite 2200 

150 West Flagler Street 

Miami, Florida 33130 

Telephone: (305) 789-3200 

By: /s/ Jenea M. Reed 

DREW M. DILLWORTH 

ddillworth@stearnsweaver.com 

Florida Bar No. 167835 

DARRELL PAYNE 

dpayne@stearnsweaver.com 

Florida Bar Number 773300 

JENEA M. REED 

jreed@stearnsweaver.com 

Florida Bar No. 84599 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 21 of 40
EXHIBIT 1 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 22 of 40
Account Detail

CLIENT STATEMENT For the Period November 1-30, 2020

Active Assets Account CHRIS M CARLOS TTEE

CHRIS M CARLOS U/A DTD 05/28/2008

Page 7 of 10

CASH FLOW ACTIVITY BY DATE (CONTINUED)

Activity

Date

Settlement

Date Activity Type Description Comments Quantity Price Credits/(Debits)

 

 

)

11/20 Funds Transferred WIRED FUNDS SENT BENE: THE MOTORCAR COLLECTION

ACCT: XXXXXXXX5140

(563,835.00)

 

 

 

 

 

 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 23 of 40
EXHIBIT 2 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 24 of 40
ABH 00052

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 25 of 40
EXHIBIT 3 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 26 of 40
ABH 00019

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 27 of 40
EXHIBIT 4 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 28 of 40
IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL

CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA

CASE NO: 2021-013915-CA-01

SECTION: CA44

JUDGE: William Thomas

CHRIS M. CARLOS, AS TRUSTEE FOR THE CARLOS TRUST

Plaintiff(s)

vs.

AUSTIN B. HOWARD et al

Defendant(s)

____________________________/

AGREED STIPULATED FINAL CONSENT ORDER GRANTING INJUNCTIVE

RELIEF TO PLAINTIFF CARLOS TRUST

THIS MATTER is before the court after hearing on June 21, 2021, upon the stipulation of

the parties, regarding the motion of plaintiff Chris M. Carlos as trustee of the Chris M. Carlos

Revocable Trust (the “Carlos Trust”), pursuant to Florida Rule of Civil Procedure 1.610, for an

ex parte temporary injunction, filed June 14, 2021, against Defendants Austin Howard

(“Howard”), The Motorcar Collection Miami Corp. (“Motorcar Miami”), and the Collection

Miami, LLC (“Collection Miami”). The court has considered the motion, the supporting Carlos

Declaration, the verified complaint filed in this matter, and the parties’ stipulation to the terms of

this final consent order.

It appears that the parties have agreed that the Carlos Trust is the rightful owner of the

personal property described in the motion, verified complaint, and below (“Carlos Property”)

(except as indicated below), and is entitled to immediate turn over and delivery of the Carlos

Property. The defendants have coordinated with the plaintiff for the delivery of the keys/fobs in

the possession of their former attorney, Peter Gonzalez, with that delivery scheduled to have

taken place at 9:30 a.m. on Monday, June 21, 2021. 

Case No: 2021-013915-CA-01 Page 1 of 5

Filing # 129174300 E-Filed 06/21/2021 03:35:27 PM Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 29 of 40
Plaintiff has satisfied each of the four prerequisites for a preliminary injunction, pursuant

to Cosmic Corp. v. Miami-Dade County, 706 So. 2d 347, 348 (Fla. 3d DCA 1998), for the

reasons set forth in detail in the motion, supporting declaration, and the verified complaint, and

pursuant to the parties’ stipulation. The parties also stipulate to this final consent order.

Defendants have actual notice of the motion, have agreed to accept service of process,

and agree that service of process was effective and accomplished on all defendants, deemed

effective as of June 21, 2021. Defendants are represented by counsel, Josh Liszt, Esq.

Public Interest. The public interest will be served because of the importance of

preserving trust assets and protecting the Carlos Trust’s interest in its property.

The court is otherwise fully advised in the premises. Therefore, it is

ORDERED and ADJUDGED that the motion for a preliminary injunction is GRANTED,

as follows, with a final consent order as to the items detailed below. Defendants Austin Howard,

The Motorcar Collection Miami Corp., and Collection Miami, LLC are:

enjoined from selling or transferring title to the Phantom (specifically, a 2020 Rolls

Royce Phantom, VIN Number SCATT6C06LU201876 (“2020 RR Phantom”)) or the

Ferrari (specifically, a 2019 Ferrari Spider, VIN Number: ZFF80AMA6K0242131

(“2019 Ferrari”)), or moving or attempting to transport or move either vehicle, to

any person or entity other than the Carlos Trust;

1.

ordered to immediately deliver to defendants’ counsel, Josh Liszt, Esq., the original

of the title for the 2019 Ferrari, fully executed for transfer of title in the name of

“The Chris M. Carlos Revocable Trust dated May 28, 2008, as amended and

restated,” to be held in escrow by Josh Liszt, pending coordination and payment by

the Carlos Trust of any state sales tax due arising from the Carlos Trust’s purchase

of the 2019 Ferrari, on November 4, 2020, either directly to the Florida Department

of Revenue or through some method agreeable to the Carlos Trust in its sole

discretion. For the avoidance of doubt, the Carlos Trust will not be required to pay

sales tax for the 2019 Ferrari directly to any of the defendants, but may in its sole

discretion agree to make payment through the trust account of Josh Liszt, Esq. 

2.

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Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 30 of 40
The defendants will cooperate in transferring title to the 2019 Ferrari, by executing

any additional documentation or taking such other action to immediately cause

title, tag, and registration to be issued in the name of the Carlos Trust, as set forth

above. The defendants will provide documentation sufficient to satisfy the Carlos

Trust, in its sole discretion, as to the fact that sales taxes are actually due and the

correct computation of same. For the avoidance of doubt, the Carlos Trust is the

rightful owner of the 2019 Ferrari.

ordered to deliver, within three (3) days of this order, to defendants’ counsel Josh

Liszt, Esq., the original title to the 2020 RR Phantom, if such title is in any of the

defendants’ possession, custody, or control. If such title is not in the defendants’

possession, custody, or control, the defendants will make all reasonable efforts to

secure return and possession of the title, including recovering such title from any

purported purchaser of the 2020 RR Phantom, by returning any funds actually

received in connection with any prior attempt to sell the 2020 RR Phantom; and

upon securing possession of the title, the defendants shall immediately deliver it to

defendants’ counsel Josh Liszt, Esq. The 2020 RR Phantom title will be held in

escrow, pending resolution of any issues regarding transfer of title to the Carlos

Trust, including payment of any sales tax actually due pursuant to a procedure

consistent with the procedure for the 2019 Ferrari, described above, and resolution

of any competing claims to title by any purported third party buyer, subject to

further order by this Court, including any agreed order by the parties regarding the

transfer of title; and

3.

ordered to deliver to counsel for the Carlos Trust, within three (3) days of this

order, via email or other mutually agreeable method, the following:

4.

copies of any and all title, sale, transfer or other documentation relating to the 2020

RR Phantom or the 2019 Ferrari, including but not limited all titles received, all

titles transferred, all transfer documentation, all applications for title, all

purchase/sale agreements, all license plates/tag and applications for same, all

registrations and applications for same, all tax payments and evidence of same, all

records regarding the purchase or sale required to be maintained as a registered

motor vehicle dealer in either Florida or Georgia; and all title/transfer

documentation regarding the 12/15/20 title for the 2020 RR Phantom issued in the

name of Collection Miami, LLC;

1.

copies of any and all documents relating to any purported sale of the 2020 RR

Phantom by any of the defendants, including but not limited to purchase/sale

agreements, evidence of receipt of payment, account statements confirming

1.

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receipt of payment, financial records reflecting any transfer of any proceeds of sale

and financial records identifying the current location of any such proceeds of sale,

documentation demonstrating the defendants’ purported right to sell the 2020 RR

Phantom, and documentation demonstrating if the purported buyer is a bona-fide

purchaser for value;

a statement signed by Austin B. Howard, under penalty of perjury, describing the

circumstances of any sale or attempted sale of the 2020 RR Phantom (after

purchase by the Carlos Trust on or about November 20, 2020), including

identifying the current location of the vehicle, the total funds received in connection

with any attempted sale, the current location of the proceeds of sale and/or the

disposition of any proceeds of sale.

1.

Defendant Howard is further: (1) enjoined from using or sharing any keys, fobs, access cards to

the Oceana Condominium owned by the Carlos Trust, and any vehicle keys, whether for the

Ferrari or Phantom; and (2) ordered to deliver, within three (3) days of this order to counsel for

the Carlos Trust (if not already delivered to Counsel for the Carlos Trust before the June 21,

2021 hearing before this Court) any keys, fobs, access cards belonging to the Carlos Trust,

whether related to the Oceana Condo, the 2019 Ferrari, the 2020 RR Phantom, and the Mercedes.

This order is binding on those entities identified above, in accordance with Rule 1.610(c). For

the avoidance of doubt, the Carlos Trust is the rightful owner of the keys, fobs, and access cards

relating to the Oceana Condo, the 2019 Ferrari, and the Mercedes.

 Because the parties have stipulated and agreed to this consent order regarding the items

identified above, and the parties have stipulated and agreed that this final injunction is not

wrongful under Rule 1.610(b), no posting of any bond shall be required. This is a final order as

to possession and ownership of the items so enumerated above, but otherwise does not constitute

a final determination of the other claims asserted in the verified complaint.

This Court may enforce the terms of this stipulated consent order, including through use

of the Court’s inherent authority of contempt, and award attorneys’ fees and costs to any

prevailing party in connection with any efforts to enforce the terms of this stipulated consent

order.

Case No: 2021-013915-CA-01 Page 4 of 5

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 32 of 40
DONE and ORDERED in Chambers at Miami-Dade County, Florida on this 21st day of June,

2021.

2021-013915-CA-01 06-21-2021 3:23 PM

Hon. William Thomas

CIRCUIT COURT JUDGE

Electronically Signed

No Further Judicial Action Required on THIS MOTION

CLERK TO RECLOSE CASE IF POST JUDGMENT

Electronically Served:

Darrell W. Payne, dpayne@stearnsweaver.com

Darrell W. Payne, cveguilla@stearnsweaver.com

Jenea M. Reed, jreed@stearnsweaver.com

Jenea M. Reed, mfigueras@stearnsweaver.com

Joshua M. Liszt, josh@gllaw.center.com

Physically Served:

Case No: 2021-013915-CA-01 Page 5 of 5

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 33 of 40
EXHIBIT 5 

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 34 of 40
IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL

CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA

CASE NO: 2021-013915-CA-01

SECTION: CA44

JUDGE: William Thomas

CHRIS M. CARLOS, AS TRUSTEE FOR THE CARLOS TRUST

Plaintiff(s)

vs.

AUSTIN B. HOWARD et al

Defendant(s)

____________________________/

AMENDED ORDER FINDING DEFENDANTS IN CIVIL CONTEMPT

THIS MATTER is before the Court on plaintiff’s Motion for Contempt and to Enforce

Agreed Stipulated Final Consent Order (“Contempt Motion”), this Court’s Order to Show Cause

Why Defendants Should Not Be Held in Contempt of Court (“Order to Show Cause”), and this

Court’s Order Setting Final Deadline for Defendants to Produce Records and Information.[1]

The Court has reviewed the Contempt Motion and the related briefing and evidence, including

the Interim Report from the Court-appointed Neutral, Stuart I. Grossman, Esq., and heard

arguments of counsel, witness testimony, and comments from the Neutral, and is otherwise fully

advised, and therefore makes the following findings of fact and conclusions of law that support

holding the defendants in civil contempt.

Factual Findings

 This case concerns, among other things, defendants’ alleged attempt to sell a 2020 Rolls

Royce Phantom vehicle (“2020 RR Phantom”) to two different purchasers within a matter of

months. As alleged in Plaintiff’s verified complaint, and confirmed by the testimony of

defendant Austin Howard and the evidence submitted in connection with the Contempt Motion,

Case No: 2021-013915-CA-01 Page 1 of 6

Filing # 137074218 E-Filed 10/22/2021 10:04:56 AM Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 35 of 40
Plaintiff paid Defendant The Motorcar Collection Miami Corp. (“Motorcar Miami”) $563,835.00

for the 2020 RR Phantom on November 20, 2020. In May 2021, Defendants purported to sell the

same 2020 RR Phantom to a third-party entity located in Illinois, and received $450,000.00 from

that transaction, wired to the account of Defendant Collection Miami, LLC (“Collection

Miami”). Defendants’ basis for this alleged sale is disputed, but has no bearing on the Court’s

finding that the Defendants should be held in contempt.

This Court, pursuant to the agreement of the parties, entered an Agreed Stipulated Final

Consent Order Granting Injunctive Relief to Plaintiff Carlos Trust (“the Consent Order”) on June

21, 2021, which required Defendants to deliver documents and information to Plaintiff related to

the two purported sales of the 2020 RR Phantom. The Consent Order specified that, by June 24,

2021, Defendants were required to deliver the following specific documents and information to

Plaintiff’s counsel:

copies of any and all title, sale, transfer or other documentation relating to the 2020

RR Phantom . . . including but not limited all titles received, all titles transferred, all

transfer documentation, all applications for title, all purchase/sale agreements, all

license plates/tag and applications for same, all registrations and applications for

same, all tax payments and evidence of same, all records regarding the purchase

or sale required to be maintained as a registered motor vehicle dealer in either

Florida or Georgia; and all title/transfer documentation regarding the 12/15/20 title

for the 2020 RR Phantom issued in the name of Collection Miami, LLC;

1.

copies of any and all documents relating to any purported sale of the 2020 RR

Phantom by any of the defendants, including but not limited to purchase/sale

agreements, evidence of receipt of payment, account statements confirming

receipt of payment, financial records reflecting any transfer of any proceeds of sale

and financial records identifying the current location of any such proceeds of sale,

documentation demonstrating the defendants’ purported right to sell the 2020 RR

Phantom, and documentation demonstrating if the purported buyer is a bona-fide

purchaser for value; 

1.

a statement signed by Austin B. Howard, under penalty of perjury, describing the

circumstances of any sale or attempted sale of the 2020 RR Phantom (after

purchase by the Carlos Trust on or about November 20, 2020), including

1.

Case No: 2021-013915-CA-01 Page 2 of 6

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 36 of 40
identifying the current location of the vehicle, the total funds received in connection

with any attempted sale, the current location of the proceeds of sale and/or the

disposition of any proceeds of sale.

Defendants failed to fully comply. Although Defendants belatedly provided certain

limited documents and finally provided some information during testimony during the second

day of the contempt hearing, there is specific bank account and other account information that

has not been produced and defendants have failed to adequately describe under oath the

circumstances of each transaction involving the 2020 RR Phantom, and to adequately explain

under oath what happened to the proceeds from the alleged sales of the 2020 RR Phantom.

The Court issued an Order to Show Cause requiring compliance by July 27, 2021,

appointed a Neutral on July 30, 2021 to assist with identifying and turning over the required

information, and issued another Order Setting Final Deadline requiring compliance by August

27, 2021. These efforts were unsuccessful at achieving defendants’ full compliance. The Court

held an evidentiary hearing on September 9 and 10, 2021, at which both Plaintiff and Defendants

presented evidence. The Court also heard testimony from defendant Austin Howard.

The Court finds that Defendants are in violation of the Consent Order, the Order to Show

Cause, and the Order Setting Final Deadline. Defendants have access to documents and

information that they have failed to provide, which clearly violates the Consent Order. Even

during the contempt hearing, defendants’ counsel initially stated that Howard had no knowledge

of two bank accounts about which the Neutral had specifically inquired. Yet, Howard

subsequently provided specific testimony related to those bank accounts, both of which belong to

entities affiliated with Howard that are also defendants in this action. Defendants represented to

the Neutral that Howard maintained no personal bank accounts. It was only after Plaintiff

presented evidence about one of Howard’s bank accounts that Howard now claimed he was

confused about whether personal bank account statements had been requested. Howard’s

testimony is not credible. Defendants also failed to provide readily available information, such

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Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 37 of 40
as American Express statements. The only way to obtain full compliance is to hold the

defendants in contempt and impose sanctions. Sanctions are in no way intended to be punitive,

but rather to compel compliance.

Conclusions of Law

The Court is vested with inherent authority to impose a range of sanctions for civil

contempt, including but not limited to filing of reports, monetary fines, and the delivery of

certain assets. Parisi v. Broward Cnty., 769 So. 2d 359, 365 (Fla. 2000). An award of attorneys’

fees is also appropriate as a compensatory sanction for the contempt. See, e.g., Alpha 2001,

Inc./Omega 2011 LLC v. Bookstein, 933 So. 2d 731, 732 (Fla. 4th DCA 2006). The Consent

Order issued by this Court was clear and unequivocal, and defendants were afforded notice and

an opportunity to be heard before the Court imposed any sanctions. The defendants’ argument

that they did not intend to violate the Consent Order does absolve them from this contempt

finding because “[a] mere disclaimer by the [Defendants] that [their] conduct was not willful or

intentional does not deprive the court of the power to declare it to be contempt . . .” In re

Weinstein, 518 So. 2d 1370, 1374 (Fla. 4th DCA 1988).

Relief

Based on the above findings of fact and conclusions of law, it is hereby ORDERED and

ADJUDGED that:

Defendants Austin B. Howard, The Motorcar Collection Miami Corp., and

Collection Miami, LLC are held in civil contempt for violating the June 21, 2021

Agreed Stipulated Final Consent Order Granting Injunctive Relief to Plaintiff Carlos

Trust, the July 23 Order to Show Cause, and the August 29, 2021 Order Setting

Final Deadline for Defendants to Produce Records and Information.

1.

Defendants, jointly and severally, are assessed a fine of $500 per day as a

sanction for contempt, which may be purged if Defendants produce all the

documents and all the information described in the Consent Order, including but

not limited to a detailed statement, sworn under penalty of perjury, describing the

particular circumstances of each of the sales or transactions involving the 2020 RR

2.

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Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 38 of 40
Phantom, and identifying particularly the disposition of all sales proceeds and the

current location of any remaining proceeds. If defendants fully comply by

September 17, 2021, the Court will not assess any monetary fine. If defendants fail

to comply by September 17, 2021, the daily monetary fine will accrue from Friday,

September 10, 2021, through the date of compliance. Defendants will be jointly

and severally liable for any monetary fine. 

If defendants remain noncompliant after September 17, 2021, the Court will have

another hearing to determine whether or not the defendants’ pleadings should be

stricken. 

3.

The Court finds that a compensatory award of attorney’s fees and costs is

appropriate, consistent with the Consent Order and governing case law, to

compensate Plaintiff for fees and costs expended related to bringing the motion for

contempt and pursuing the enforcement of the Consent Order, at hearing and

otherwise. The Court will schedule a hearing to determine the appropriate amount

of fees and costs to be assessed, based on evidence of the amount expended by

Plaintiff. Defendants will be jointly and severally liable for the amount determined

by the Court. Although the daily fine referenced above can be purged by full

compliance, the award of fees and costs will remain as a compensatory sanction.

4.

The Court will confer with the Neutral to determine whether there has been full

compliance by the defendants.

5.

The Court expressly reserves jurisdiction to enforce the terms of this Order and to

enter such further orders as may be necessary in the future.

6.

[1] This order amends the Court’s contempt order dated September 14, 2021, to remove

Defendant The Motorcar Collection, LLC (“Motorcar Atlanta”) from the finding of contempt. 

The parties had inadvertently reviewed and submitted to the Court an initial order that should not

have included that defendant. As used in this contempt order, “Defendants” refers only to

Defendants Austin Brode Howard (“Howard”), The Motorcar Collection Miami Corp.

(“Motorcar Miami”) Collection Miami, LLC (“Collection Miami”).

DONE and ORDERED in Chambers at Miami-Dade County, Florida on this 22nd day of

October, 2021.

2021-013915-CA-01 10-22-2021 9:54 AM

Hon. William Thomas

CIRCUIT COURT JUDGE

Electronically Signed

Case No: 2021-013915-CA-01 Page 5 of 6

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 39 of 40
No Further Judicial Action Required on THIS MOTION

CLERK TO RECLOSE CASE IF POST JUDGMENT

Electronically Served:

Annabel C. Majewski, annabel@wassonandassociates.com

Annabel C. Majewski, e-Service@wassonandassociates.com

Austin Howard, brode@themotorcarcolllection.com

Collection Miami, LLC, brode@themotorcarcollection.com

Darrell W. Payne, dpayne@stearnsweaver.com

Darrell W. Payne, cveguilla@stearnsweaver.com

Harry A. Payton, payton@payton-law.com

Harry A. Payton, smorejon@payton-law.com

Harry A. Payton, smohorcic@payton-law.com

Jenea M. Reed, jreed@stearnsweaver.com

Jenea M. Reed, mfigueras@stearnsweaver.com

Jenea Reed, jreed@stearnsweaver.com

Jenea Reed, dangel@stearnsweaver.com

Jenea Reed, mfigueras@stearnsweaver.com

Joshua Mark Liszt, Esq., josh@gllawcenter.com

Roy D Wasson, e-service@wassonandassociates.com

Roy D Wasson, roy@wassonandassociates.com

Stuart I. Grossman, sig@lklsg.com

Stuart I. Grossman, acd@lklsg.com

Tajhna Handal, thandal@stearnsweaver.com

The Motor Car Collection Miami Corp., brode@themotorcarcollection.com

The Motor Car Collection, LLC, brode@themotorcarcollection.com

Physically Served:

Case No: 2021-013915-CA-01 Page 6 of 6

Case 22-11866-LMI Doc 63 Filed 06/21/22 Page 40 of 40