Van Nuys Lot Investigated in Sale of Seized Vehicles

A Van Nuys garage that warehouses vehicles seized by police is under investigation for alleged improper sale and handling of impounded cars and motorcycles, including at least three held as evidence in murder cases, authorities said Friday.

The Los Angeles police investigation of Fox Motors, a city-permitted Official Police Garage, began last year when a woman complained that the Mercedes-Benz her ex-husband was found slain in had been sold by the garage without her knowledge or consent, authorities said.

Detective Wayne Wealer said the investigation has been presented to the district attorney’s office for possible criminal charges, such as embezzlement or car theft.

Operators of the garage, in the 15100 block of Erwin Street, denied any wrongdoing. The Los Angeles Police Commission has ordered an administrative hearing at which Fox Motors’ police garage permit could be revoked. A hearing date has not been set.

Police said Friday that the loss of vehicles has not compromised any criminal prosecutions, though in one murder case a defense attorney attempted unsuccessfully to have the charge dropped because a car involved in the killing had been sold by Fox Motors and crushed.

Authorities declined to describe alleged improprieties in detail. But in seeking the hearing, Police Commission detectives filed a 71-count report that details how several vehicles were allegedly sold without legally required notification to their owners, the public or police.

According to the state Civil Code, when police complete investigations and release impounded cars, the garage is required to try to find the owner. If the owner cannot be located, then the garage must sell the car at a public auction. The garage deducts storage and other expenses from the proceeds and turns over the remainder to the state Department of Motor Vehicles.

Police said the owner of Fox Motors is Henry F. Fox. Police Commission allegations state that several cars were sold by Fox Motors through other car dealerships managed by members of the Fox family.

Fox Motors “failed to conduct their business in an ethical and orderly manner so as to maintain public confidence,” the accusation report reads in part.

Henry F. Fox could not be reached for comment Friday but his son, William Fox, who is general manager of the garage, denied any wrongdoing by the company.

“The allegations are untrue,” William Fox said. “Our witnesses and documentation refutes their claims. We have conducted our business as an OPG in a legal manner for over 37 years and it is our opinion that the police investigators have misinterpreted and misconstrued their evidence.”

According to the Police Commission report, a 1971 Pontiac impounded as evidence in a Sepulveda-area murder was sold for an undisclosed amount Jan. 4, 1988, by Fox Motors and crushed at a junkyard the next day. Police had not been notified and the garage did not follow public notification procedures.

On Jan. 19, 1988, a 1968 Mercedes-Benz was impounded as evidence in a murder. The report says it was sold four months later without police knowledge for $1,000 by Fox Motors to Foxy Wheels, a Palm Springs car dealership operated by members of the Fox family. On Sept. 22, 1988, it was sold to a customer at the dealership for $5,695, police said.

Police began their investigation of Fox Motors when an Idaho woman who had been married to the man killed in the Mercedes complained that the car had been sold. The woman, Irene Wilson, told United Press International that she had not been notified of the sale.

“I wasn’t going to do anything but turn around and sell it,” she said. “My ex-husband had paid $10,000 for it and I figured I could use the money to help our daughters through college.”

The Police Commission investigation also found that in early 1988 a motorcycle held as evidence in a Van Nuys murder was being used by a manager at Fox Motors, the commission report said. The motorcycle was found by investigators at the manager’s home.

The report also said investigators found that a stolen Porsche impounded by police had been improperly sold. Fox Motors itself bought the car for $900. It was later sold by Car Connection, a Van Nuys car lot operated by members of the Fox family, for $4,100, the report said.

The commission report details several other violations of police garage regulations, such as misusing dealer license plates and allowing truck drivers to work without police permits.

Police said Friday that cars impounded as evidence in criminal cases are no longer taken to Fox Motors.