By on April 24, 2020

Former millionaire and ex-owner/CEO of Interlogic Outsourcing Najeeb Khan has been forced to sell off his entire car collection after declaring bankruptcy last year. Accusations of fraud from former clients and businesses partners really put Mr. Khan through the financial wringer. Multiple lawsuits claim the company failed to hand clients’ tax money over to the Internal Revenue Service — encouraging Khan to sell his business to Pennsylvania-based payroll firm PrimePay. While that certainly sounds suspicious, any determinations on his guilt are best left to the professionals.

Since Khan’s company has little to do with the automotive sphere, we’re not overly concerned with the details of the alleged monetary malfeasance, anyway. The important issue, from our perspective, is he now has to sell off his remaining assets. That includes investments made into various businesses, multi-million-dollar homes, and 281 vehicles — many of which are highly valuable and incredibly rare. 

Referenced in an article from the the South Bend Tribune in November of 2019, Khan reportedly got into contact with RM Sotheby’s and other auction houses to begin plotting the sale of a collection valued around $31 million. That arrangement has been finalized for a while; however, complications stemming from the global pandemic stalled their entry onto Sotheby’s website up until recently.

Known as the Elkhart Collection, the sale encompasses 230 cars, 30 motorcycles, some trucks, excavation equipment, a few military vehicles, and more collectible automotive paraphernalia than any single person could ever truly enjoy. Even the spare parts list is mind boggling. Want a brand new Dodge Demon hood? How about an engine for a Jaguar D-Type? Interested in some loose Ferrari components? Fresh Jaguar XJ220 Pirelli P Zero tires piquing your interest?

They’re all up for grabs, sans reserve, and but a paltry sampling of the automotive buffet Sotheby’s named after the town where Mr. Khan ran his business and stored his collection.

Speaking of cars, that’s the best part of the Elkhart Collection. Khan’s taste definitely favored a specific era (’50s to ’60s) and skews European, though there’s no shortage of magnificent models from all periods and continents. The group ranges from a 1903 Clément 12/16 HP Rear-Entrance Tonneau to a 2011 Tesla Roadster Sport R80.

Your author is particularly enamored with an adorable little 1993 Suzuki Carry imported from Japan. Enthusiast will probably gravitate toward the more flashy inclusions, like Khan’s Jaguar XJ220 hailing from the same year. Too modern? Don’t worry, five seconds of browsing through the throng of vehicles is all it takes to find something that’ll scratch you under the chin. Here’s a not-so random sampling:

1969 Alfa Romeo 1750 GT Veloce
1974 Alpine-Renault A110 1600 VD
1966 Amphicar 770
1964 Aston Martin DB5
1935 Auburn Eight Supercharged Speedster
1924 Bentley 3-Litre (converted to 4½)
1954 Buick Roadmaster Convertible
1957 Chevrolet Bel Air Convertible
1959 Cadillac Eldorado
1958 Chevrolet Corvette
1966 Citroën DS21 Décapotable
1937 Cord 812 Supercharged Cabriolet
1981 DeLorean DMC-12
1949 DeSoto Custom Convertible
2018 Dodge Challenger SRT Demon
1972 Ferrari 365 GTB/4 Daytona Spider
1998 Ferrari 550 Maranello
1967 Ford Bronco
1966 Honda S600
1969 Honda S800
1968 Iso Grifo GL Series I

Despite skipping over everything that won’t elicit involuntarily, positive sounds from our readers, we’re not even halfway through the alphabet and I’ve already realized I’m going to have to tell you about the insane number of continuation and original Jaguar models Mr. Khan had in storage. It also feels wrong to skip the “lesser” models included in the Elkhart Collection. Among the ultra-desirable cars (a lot of which have twins and individual lots for all their spare parts) were four Ford Coritina Lotus Mk1s, tons of vintage Fiats, several Hudson Hornets, Lotus products galore, and a bunch of Austin-era Minis.

But if you want to hear about the 1958 Zündapp Janus 250 or 1945 Willys MB, you’ll have to check the collection for yourself. It’s massive and is beset on all sides by vintage items you can either use to maintain these vehicles or spruce up the garage. A lot of that stuff should be pretty reasonable, but you might even snag yourself a new car, as almost everything is available without reserve. Fortunately, Sotheby’s doesn’t plan on auctioning anything off until October 23rd (10:00 AM GMT), all thanks to the coronavirus — giving you plenty of time to browse.

[Images: RM Sotheby’s]

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36 Comments on “CEO Accused of Fraud Forced to Auction Exquisite Car Collection...”


  • avatar
    Ol Shel

    Maybe he was just being SARCASTIC in his dealings.

    It’s worth a shot.

  • avatar
    Lou_BC

    “forced to sell off his entire car collection after declaring bankruptcy”

    I’m no lawyer but if you are declaring bankruptcy, retaining a multi-million dollar car collect would indicate that you aren’t quite bankrupt.

    • 0 avatar
      ravenuer

      No lawyer either, but I thought declaring bankruptcy doesn’t actually mean anything until the court settles it. So, maybe the sale of his cars is part of the court procedure.
      Any lawyers out there?

      • 0 avatar
        Scoutdude

        Well the whole forced thing indicates that yeah the bankruptcy court has ordered the sale of his assets and give that money to his creditors/people he ripped off.

    • 0 avatar
      JimZ

      it depends. first if this is a corporate or personal bankruptcy. if you have a hope of paying your debts over time you can file Ch. 11 (corporate restructuring) or Ch. 13 (personal, basically re-financing.) But you have to have an income level or prospects which show you can actually pay it off, even with extended terms. if you have no income sources which would reasonably allow you to pay down your debt, in either corporate or personal cases you’re pretty much stuck filing Ch. 7 which means you have to liquidate and hope your creditors settle for what they can squeeze out of your assets.

    • 0 avatar
      96red

      “Bankrupt” means that you are unable to pay your debts and keep current with your debt payments. Personal bankruptcy means, generally, that you are absolved from paying some or all of your debt and results in a Court Order prohibiting your creditors from coming after you and/or suing you.

    • 0 avatar
      Lorenzo

      Bankruptcy is a legal process. It can mean you have more liabilities than assets, or it can mean you actually have more assets than liabilities, but no means to pay the liabilities in a reasonable amount of time and the people/entities you owe to can attach or seize your assets.

      Declaring bankruptcy prevents asset seizure while a court works out how much is owed and to whom (the creditors are ranked by who is entitled to be paid first) and how assets may be retained or sold to pay creditors. This is likely a personal bankruptcy, so he’ll keep the clothes on his back and family keepsakes among other personal effects, and not much more.

      • 0 avatar
        96red

        In Florida, there is an unlimited homestead exemption. That means you can keep your home in a Chapter 7, or claim a 100% exemption in a Chapter 13, even if your home is worth millions of dollars. That’s why Burt Reynolds and OJ Simpson (and presumably Mr. Khan) relocated to Florida to file there…

        • 0 avatar
          Lorenzo

          It’s likely just one home. This guy owns several homes, just like he owns several classic cars.

          The homestead exemption, and especially the lack of personal income tax, are the reasons lots of athletes and actors own homes in Florida that are their official homes of record, though they spend most of their time elsewhere.

      • 0 avatar
        96red

        In Florida, there is an unlimited homestead exemption. That means you can keep your home in a Chapter 7, or claim a 100% exemption in a Chapter 13, even if your home is worth millions of dollars. That’s why Burt Reynolds and OJ Simpson (and presumably Mr. Khan) relocated to Florida to file there…

  • avatar
    zipper69

    A glance through the listing – which seems endless and is in every way a gearheads dream shows the man had excellent taste and deep pockets almost all the stuff is in A1 condition.
    I lusted for the 1937 Brough Superior CAR (based on Hudson Terraplane frame and engine) incredibly rare and simply gorgeous to look at.

  • avatar
    SCE to AUX

    That 1903 Clement is exquisite.

    What an amazing collection – this has to hurt.

  • avatar
    thelaine

    I’m really disappointed in you, Najeeb.

  • avatar
    Lie2me

    Those are all beautiful cars, I’d have trouble picking just one

  • avatar
    subuclayton

    Had a really cute ’58 Corvette ragtop that I had to sell in 1966 when I left US to do a junior year overseas. $1000. (But it was a 283 3-speed). Maybe this is my chance to pick up another one, although it might cost more than I got for the first one.

  • avatar
    Stanley Steamer

    I’m all in for the decapitatable Citroen. Ultra cool!

  • avatar

    Look at all these Rare Rides!!

    • 0 avatar
      Lie2me

      I love the big ’59 Caddy convertible all the way in the back. It’s so massive it’s hard to believe there was a time when you could walk into a showroom and just buy it and drive it around like, you know, a normal car

  • avatar
    Jeff S

    I wouldn’t be surprised if Jay Leno attends this auction and buys something.

    • 0 avatar
      JimZ

      whether or not you care for Leno’s schtick, you have to give him a lot of credit for actually driving the cars he buys, no matter how rare. He’s even given rides in his Chrysler Turbine Car.

      • 0 avatar
        Lie2me

        I respect Jay Leno’s collection, but if I ever met him the first question I would ask him is why he converted a classic, front drive, 1966 Toronado to rear drive. Why would he do that?

        • 0 avatar
          JimZ

          because it’s his.

          • 0 avatar
            Lie2me

            I know, but I still want to know why

          • 0 avatar
            JimZ

            from what I’ve found the donor car was practically a basket case, and Toronados aren’t desirable enough to have put it through a complete concours restoration. They *looked* good but underneath there wasn’t really anything to brag about. So that one keeps the style but gets rid of everything else that sucked about the car.

      • 0 avatar
        Art Vandelay

        Jay came over to Afghanistan my last tour. He was getting off the plane and we took incoming. Still showed up with Al Roker and some others and did his schtick and hung around afterward for a good while just shooting the breeze with people even though he was obviously really tired at that point. I asked him about his Mercedes 600 and he talked for a few minutes about how the supercharger really woke it up and how it was just a great car. He came across as a stand up dude. His act was raunchy though which I for one appreciated. It was just as funny watching all the brass look around wondering if it was OK for them to laugh.

  • avatar
    threeer

    Of all the super expensive exotics and rare cars, I just stopped at the lowly Opel GT. My late father always drove an Opel (admittedly used Rekord), but that would be a super tribute to him.

  • avatar
    87 Morgan

    This fella seems to have a thing for Her Majesty’s finest…more so than other collectors at least. Obviously the Aero 8 caught my attention, along with the Aston Martin db5 next to it. I think one the continuation builders needs to come up with a db5 kit.

  • avatar
    NeilM

    Well the guy may (or may not) be a crook, but he sure had some quirky good taste. And a particular interest in microcars.

    Me, I lust after the 1969 Alfa 1750 GTV in gorgeous red over tan, and the very rare 1974 Alpine-Renault A110 rally car with a factory 1.8 race engine (and scary harness installation…). Nothing wrong with that 1969 Miura, either.

    And hey, you never know when you’ll need a spare Renault Gordini race engine! (Former racer Amédée Gordini was Renault’s tuner counterpart to Mini’s John Cooper.)

  • avatar
    96red

    It appears that Khan filed a personal Chapter 13 bankruptcy in Florida last year. In a Chapter 13, you are required to submit a 3-5 year payment plan to repay your creditors a specified percentage of what you owe. (Your plan can be anywhere from 2% to 100%).

    This percentage is based upon the value of your disposable income (taking into account certain allowable expenses) and the value of your assets. (Depending on state exempt-property law, you are allowed to keep specific items – one home and one car, for example).

    Your extra income goes to the creditors. Your extra assets can be seized by the bankruptcy trustee assigned to your case and sold – with the proceeds distributed to creditors. The trustee gets a percentage of the sales as his commission. (I believe it’s actually the trustee selling these cars, and not Khan).

  • avatar
    96red

    “Bankrupt” means that you are unable to pay your debts and keep current with your debt payments. Personal bankruptcy means, generally, that you are absolved from paying some or all of your debt and results in a Court Order prohibiting your creditors from coming after you and/or suing you.

  • avatar
    johnnyz

    Ok, I will take the bait.

    I want the Lamborghini miura.

    Last I heard a very mint example is worth just shy of 1M.

    Fire sale 500k?

  • avatar
    Erikstrawn

    I have a weird fascination with the Alpine-Renault A110. They were never imported to the US, but apparently were built in Brazil for a while. I think there’s less than a dozen here. When I was in France twenty years ago, they were everywhere, cheap. Kinda like third-gen Camaros here.

    I’m just worried that if I actually got one I wouldn’t be able to get maintenance parts.

  • avatar
    dukeisduke

    A pretty nice, eclectic collection. I like the Fiat 8V up front.

  • avatar
    Pete Zaitcev

    I thought Seattle were subbier than Denver.

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