These items include "approximately 40-Mustang fastback shells, body parts, tools, lifts." This is going to be another online auction currently scheduled for June 24, 2008 at 10:00 am. We're waiting for full details to be released, but in the meantime check out the auction website for more information. (Thanks Cameron!) [67MustangBlog.com]

From what we have heard from the Dallas County D.A. they would much prefer to have Doug in a nasty state prison somewhere in west Texas in the 100+ degree sun than in some Federal country club where he can get visits from his girlfriend. Plus Governor Perry would surely prefer to have him under his control since he was made to look like an ass on TV by Stephanie Lucerio asking him why they were having his prisoners cutting VIN plates off cars inside the prison.

Just a quick recap for those who haven't been following this, Eleanor-duplicate maker Unique Performance was raided after customer complaints. During the raid police noticed missing VIN numbers on many cars, indicating title washing. The company then filed for bankruptcy so it wouldn't have to pay employees or customers. And they may have also used prison labor illegally. So, yeah, we still think someone is going to jail.

[CBS-11 via 67mustangblog]

We don't have a final tally on how much the lawyers get, or if there are other ways to recoup the money (maybe not). Either way, it doesn't look like those on the wrong end of this are going to get justice from this particular auction. Though, as one former employee told us "I guess we have the memories... and the hope to see [owner Doug] Hasty behind bars!" More when we get additional information.

Employees hope that the sale will cover the back-taxes so that they can get their back-pay. You'll remember one employee told us that Unique Performance lied about paychecks to get people to continue working. Details below:

Unique Performance/Unique Motorcars Auction

Bankruptcy Case No. 07-36211-BJH-7, Vintage Automotive Restoration. Moved for convenience of sale: Bankruptcy Case No.07-31392-BJH-7 Secure Car Armour Corp., armored luxury cars and bankruptcy case no. 07-45584-DML-7, Thomas Estate, 2005 Hummer
DATE:
March 27th, 2008, 10:00 AM
LOCATION:
13950 Senlac Drive, Farmers Branch, TX 75234
INSPECTION:
Tuesday, March 25, 2008 from 9 am until 4 pm (CDT)
STYLE:
Online Only

[Rosen Online Auction]

There have been a lot of claims made back and forth, including the recent news about Unique Performance using prison labor to possibly replace valid VIN numbers. It's unclear what the 25 charges are, but the DA is going to have to determine what is worth taking to a grand jury (though grand juries have a habit of voting in the affirmative) and what's worth starting a case over.

We can debate whether using 13 gallons of Bondo, Taiwanese parts and prison labor is a normal or abnormal practice when building $200,000 cars, but there has to be legal merit to the case. Where this case may have merit is that, in addition to taking people's money and not delivering cars, certain promises or advertisements were likely made about the quality and hand-built nature of the cars. If that's the case, and we assume it is since people forked over all that dough, the DA might have an easy way of proving fraud and deceptive business practices. The prison labor and suspected title washing is a bonus, as there's likely a trail of evidence if it turns out that what they did was in violation of existing Texas laws.

Federal investigators have also submitted cases to the US Attorney's office, giving this case a federal aspect. What federal laws were violated are unclear, though we do know the cars were sourced from other states and brought into Texas, which likely plays into it. The Secret Service involvement, and the claim of three suspects, is interesting. The Secret Service is the law enforcement arm of the Dept. of the Treasury and also has jurisdiction over certain types of fraud, mostly involving the transfer of money.

Either way, there are still many questions to be answered. If we were Unique Performance owner Doug Hasty we'd be worried. We see it as likely that Hasty may be pressured into some kind of plea bargain unless he's 100% convinced of his own innocence or the DA's case is so strong they don't feel like they need to do it. Of course, settling on charges with the Dallas County DA doesn't create an exemption from federal charges.

We'll let you know when the parties involved are formally charged.

[CBS-11 via 67 Mustang Blog]

History

After the success of Gone In 60 Seconds, Unique Performance with the blessing of Carroll Shelby started building "Eleanor" replicas. Turns out that most of those replicas may have been built with salvage or otherwise questionably titled Mustangs and, despite taking huge deposits, weren't being delivered. After being raided by police and shut down, the company filed for bankruptcy and refused to pay Unique Performance employees. That's where we stood before these latest revelations.

Statement From Doug Hasty's Lawyer

Every customer that has received a car has ultimately been satisfied with the quality of the car they received. Farmers Branch Police are continuing their witch hunt. They continue to leak false accusations to the press knowing that we have not had an opportunity to have access to the cars to rebut their claims. There were no title issues or criminal problems with the titles and no one has been defrauded. We are eager to address these cases in a court of law, on the record, where people will have to be responsible for their conduct. And I'm referring specifically to the Farmers Branch Police Department.

Special thanks to 67Mustangblog for following the story so closely. [All information via CBS-11 TV]

"This shit is really outrageous to me, since I always detected that something was up when I'd show up at their shop/offices. Title washing? Yeah, normal people and drug dealers just call that money laundering."

Hasty is claiming that the problems originally sprang from bum engines delivered by Carroll Shelby's company in Las Vegas, which slowed down the process of producing the cars for delivery. He also claims Shelby delivered sheet metal and body work that were not up to UP's standards. Shelby, understandably, claims otherwise.

On the issue of title washing, whereby the VINs of the cars do not match or in some cases may not exist, Hasty claims that some paperwork may have not been filed properly but that he has records for every car.

As for the police investigation, no charges have been filed but the Farmers Branch Police Department, which led the raid last month, is claiming the issues that there's so much evidence needed to sort through in order to make one large case.

And as for the cars? Well. The lawsuit continues but most customers who commented seemed resigned to never getting them, despite the $15 million spent on deposits. It's a great, complete story worth reading. (h/t James) [Dallas Morning News]

A follow up report from CBS-11 in Dallas, which broke the story, confirms what we heard from an ex-employee about the company not paying wages. The company apparently owes something like $40,000 in back pay to employees.

The picture painted of the final days by the former employees at Unique Performance is bleak, with management apparently telling employees that they should continue to make cars and that they would be paid "probably in an hour, probably by the end of today, three o'clock today, four o'clock today and nothing, but please keep building this cars."

A lawyer for Doug Hasty, the CEO of Unique Performance, said "Many of those matters are in bankruptcy court and the decisions about who gets paid what and when belong to the bankruptcy court and the bankruptcy trustees." So who knows when or if these people will get paid.

Though businesses frequently go under and in many cases don't tell employees about what's going on until the end, this particular story is so gripping because of how easy it all seemed. There's such a strong desire for specialized cars, specifically muscle cars, that a small company was able to convince dozens of buyers to put down hundreds of thousands (if not millions) of dollars for cars endorsed by Chip Foose and Carroll Shelby, two names intimately associated with American muscle car performance.

And though the original intention of the company was probably not to deceive, the money involved seemed to allow the deception to go on for months before finally coming to a head with the police raid last month. We even did a story in January about Foose Mustangs going on sale at Ford dealerships, though it looks like the company might have been experiencing problems before then.

It's a sad story and the victims seem to be both the unpaid employees that built the cars and the wealthy customers who may never see them. [CBS 11]

"I was an employee of Unique Performance for about 3 years of and on. Just FYI the employee's that were there till the end still haven't been fully paid out, 2 full weeks of pay plus 401k, and whatever else they owe. I personally just wanted someone to know the inside story. Thanks, nice story to by the way."

This is horrible news for anyone waiting for a new car or, at least, hoping to get their deposit back. This development leaves some questions remaining, like what's going to happen to the seized cars and what, if any charges will be filed. There are also some new questions this raises, namely who does the company owe money to besides those who put deposits down for new cars? [AutoWeek]

After reading reports and following up with local police and former associates, here's what we've learned:

First, the owner of Unique Performance and everyone at the company (whoever is left, we hear most were laid off already) ain't talking. There are serious legal issues and the lack of attempts at saving face mean that UP probably isn't coming back.

Second, there have been no formal charges made by the Dallas County District Attorney. This doesn't mean anything because the DA isn't obligated to file charges yet and it's possible that part of the investigation continues.

Third, if you've given Unique Performance money and haven't gotten your car yet things aren't looking good. It's a little unclear what the end-game is here but the ability to get money back (probably punitively) is likely tied to there being money and significant assets at the end of the day.

Unfortunately, the behavior of this company is not indicative of a company awash in cash. If we're generous in our assumptions, Unique Performance got in this situation because they weren't able to generate enough revenue to cover expenses and accrued significant debt. But this is only speculation as we haven't seen the company's balance sheet yet (and probably won't until it becomes an exhibit for the prosecution).

The next move we expect to happen is that the Dallas DA will file charges and then UP will make some sort of statement... maybe. We'll keep you posted as we learn more. [NY Times]

FOOSE DESIGN TERMINATES ALL LICENSING AND BUSINESS ACTIVITIES WITH UNIQUE PERFORMANCE EFFECTIVE IMMEDIATELY

HUNTINGTON BEACH, Calif. (Nov. 9, 2007) - Foose Design announced today that effective immediately it has terminated all licensing and all business activities with Texas-based Unique Performance, Unique Performance Concepts and related companies. This termination includes the limited production of all vehicles formerly licensed to Unique including but not limited to, the Foose Mustang Stallion, Foose Camaro, Foose Challenger, Foose Motorcycle and the sales and marketing of the "Hemisfear", also known as the "Foose Coupe", manufactured by Metalcrafters. Foose Design has clearly stated that it no longer has any affiliation with Unique, and encourages customers to understand that Unique no longer has any rights to Foose intellectual property, the Foose name, image, likeness, logos or designs regarding any project.

Chip Foose, the winner of an unrivaled three "Ridler" Awards, and the Foose Design team have worked for more than eight months to resolve issues relative to Unique's problems but ultimately found it necessary to sever their relationship with Unique Performance.

Foose Design does not manufacture production vehicles rather it specializes in designing and fabricating custom built, one-of-a-kind custom cars. Foose Design created the concept for a prototype vehicle to be built under its license to Unique.

Chip Foose builds a special bond with every Foose vehicle owner and it causes him great stress to see this situation occur. Chip has worked tirelessly through the years to build his company, brand and image, which it works diligently to protect, both for itself and Chip's collectors and fans.

Foose Design is working with its legal staff to consider possible action against Unique Performance.

When Farmers Branch, Texas police raided the place they found 61 vintage cars (the video report from the local CBS affiliate shows mostly Mustangs) in various levels of construction. After lifting the hoods, cops found VIN plates to be fake. And underneath? You guessed it. They found signs of significant scratching where the old ones were.

Title-washing seems like a good idea if there are a limited number of vintage Mustangs around and you want to pick up some salvage ones on the cheap. Unique Performance isn't a small operation (they also do work with Foose), so this could spell big problems for those who have already put down deposits when the Feds get involved. We'll follow this story as it develops. [CBS 11 TV]

We had some other things on our mind a couple of weeks ago, so we've got to apologize to the man, the myth, the marketing maven that is Chip Foose. Foose announced earlier this month his newest creation, the Mustang-derived Stallion, is now available for purchase at all sorts of local FoMoCo dealerships. The Stallion, distributed to dealers by way of Unique Performance, includes all sorts of "unique" performance enhancements like a Ford Racing exhaust, suspension and a "power pack" from Ford Racing that includes cold air induction and ECM recalibrated for premium fuel for an estimated 335 hp. You can also tell Chip's put his manly n' meaty hands on the now Foose embroidered seats, custom sill plates and a signature logo on the dash. Plus, it's got the upper and lower billet grille and those big ol' 20-inch Foose Nitrous wheels so you can spot it from at least some of the other Mustang variants in your dealer parking lot. We're not exactly sure of how to order one of them — but you may want to try walking up to the front of the store and yelling at a security camera, "I've been Overhauled!" Gallery below and full press release after the jump. – Ray Wert

FOOSE STALLION MUSTANG NOW AVAILABLE THROUGH ALL NORTH AMERICAN FORD DEALERSHIPS DALLAS - January 5, 2007 - Unique Performance has expanded distribution of the Foose Stallion Mustang by introducing a new base model for all North American Ford Dealerships. Deliveries of the first Foose Stallions began in June 2006 and demand has steadily grown for the stylish, high performance pony car over the past six month. Response to the Foose Stallion led Unique Performance to introduce additional models at SEMA in November 2006. Designed by Foose and built by Unique Performance Concepts, all custom versions of the Ford Mustang were recently only available through Ford select dealers. Unique Performance Concepts is a joint venture between Unique Performance and the Tecstar Automotive Group, a subsidiary of Quantum Fuel Systems Technologies Worldwide (Nasdaq: QTWW).

"The Foose Stallion is responsive and fluid, powerful and dynamic, superbly crafted and unmistakably Foose in every element of its design," said Unique Performance President Douglas Hasty. "During the first few months of production, many consumers have asked for additional versions of the car. This new base model expands the Foose Stallion models available so drivers now have the opportunity to own an even rarer custom car."

Available in coupe and convertible configuration, the team enhanced the handling, styling and capabilities of the current Ford Mustang to create the Foose Stallion. Performance enhancements include a Ford Racing exhaust and suspension and 11-inch rear and 12-inch front DecelaRotors. In addition, Chip's touch can also be found throughout the Stallion. From Foose embroidered seats and Foose sill plates to the Foose ID plate and signature logo on the dash, the famed designer put his stamp on this modern muscle car. Rounding out the modifications is an upper and lower billet grille and 20-inch Foose Nitrous wheels. This base package is available at a MSRP of only US$36,365.00.

Related:
More on the Foose Stallions for 2007 [internal]

No blower or other speed-shop tweaks come standard with the production Foose Stallion Mustangs; the partnership between Sir Chip and the hammerheads at Unique Performance comprises mainly body cosmetics, wheels and brakes. The latter tweak involves adding Baer two-pot calipers in the front and cross-drilled "Decelarotors" at all four corners, which add bite to the anemic stoppers on the Mustang GT donor cars. Body mods include reshaped hood and side moldings, revised grille, new fascia, custom side marker lights and side scoops, along with custom graphics and DuPont Hot Hues paint. A performance exhaust comes special delivery from Ford Racing Performance. Options include two-tone paint, racing stripes, chrome wheels and a "power pack" from Ford Racing that includes cold air induction and ECM recalibrated for premium fuel for an estimated 335 hp. No word on price, but AutoWeek once predicted the cars would go for around $40,000 each, with a production capacity of up to 3,000. With such mass merchandising becoming the norm for ol' Chip, can "Fooseical the Musical" be far behind? [Gallery]

Related:
More On the Foose Stallion Mustang [internal]

Earlier this year, Foose Design and Unique Performance announced a teamup to build a limited-edition 1970 Dodge Challenger. Say hello to their little car. Production of the E-body throwbacks — which are built on the bones of original 1970 and 1971 Challengers — started midyear, with the first series model planned to be sold at the 2007 Barrett-Jackson auction in Scottsdale. Visuals come by way of the Foosian pen, while mechanicals include a choice of crate Hemi, rear suspension by Unique Performance and speed tech by Georgia's Year One. For you? $189,000. [Gallery] – Mike Spinelli

Press Release

Unique Performance and Foose Design have come together to bring a limited edition supercar, which is based on the 1970-71 HEMI Challenger, to MOPAR fans worldwide. The two companies will turn a limited number of the Dodges into world-class performance machines with 21st century speed technology including parts from Georgia based Year One. The prototype was completed in June 2006 and production began in 2006.

The team is transforming original 1970 and 1971 Challengers with contemporary wheels, engines, suspensions, transmissions and interiors. Each Foose Challenger is clad in DuPont's Hot Hues custom finish and have a sleek custom interior. Either a 347 c.i.d. HEMI small block or a 426 c.i.d HEMI big block can be mated to the TKO 5-speed transmission.

The car features a Unique Performance Products rear suspension, 4-wheel disc Baer brakes, staggered Foose wheels and BFGoodrich tires. Styling cues include Foose emblems, a custom front grill, shaved bumpers and custom hood. Each car has a unique serial number for documentation purposes.

Award-winning Chip Foose designed the Foose Challenger. His creative ideas are the driving force behind the respected automotive and product development company Foose Design. Headquartered in Huntington Beach, Calif., it specializes in illustration, graphics, ideation model making, surfacing and complete construction of automobiles and automobile-related products.

With the addition of the 1970-71 Dodge Foose Challenger, Unique Performance now offers a limited edition muscle car from each of the major automotive OEMs including Ford, GM and Chrysler. The first production Foose Challenger will be sold at the 2007 Barrett-Jackson Auction in Scottsdale, Arizona.

Motor

* 5.7L Modern Hemi, 360 HP
* Mopar 426 Hemi, 540 HP *
* Fully Tuned High Performance Carburetor
* Electronic Fuel Injection System *

Transmission

* Tremec TKO 5-Speed Transmission

Clutch

* Custom Hydraulic Clutch

Interior

* Two-Tone High Bucket Vinyl Seats w/ Suede Insert
* Two-Tone High Bucket Leather Seats w/ Suede Insert *
* Foose Floor Mats
* Carbon Fiber Gauge Package
* 15" Black Leather Wrap Steering Wheel
* Old Air Products A/C System
* Extreme Sound Dampening Package
* Custom 4-Point Roll Cage
* OEM Type Carbon Fiber Pistol Grip Shifter

Stereo Systems

* CD Player Stereo System
* LCD AM/FM/CD/DVD Navigation Custom Console*
* 10-Disc CD Player Stereo System*

Wheels and Tires

* Foose Designed Wheels: 19x8" Front, 20X10" Rear
* Z-Rated Tires: 245/40/19ZR Front, 295/40/20ZR Rear

Exterior

* Chip Foose Designed Five-Tone Paint & Graphics
* Chip Foose Designed OEM Body Enhancements
* Foose Emblems
* Modified Front Lower Valance w/ PIAA Light System
* Custom 55w Dual Headlight System

Rear End

* Modified Posi-Traction Rearend 31-Spline Type Rotating Assembly

Steering

* Quick Ratio Power Steering Rack
* 5-Way Adjustable Tilt Column

Brakes

* Front: Baer 14" Extreme System
* Rear: Baer 13" Extreme System
* Slotted, Cross Drilled & Zinc Washed Rotors
* Adjustable Rear Bias Proportioning Valve

Exhaust

* Headers w/Ceramic Coating
* Dual 2.5" Exhaust with "X" Pipe
* 2.5" Aluminum Mufflers

Cooling

* Aluminum Cross Flow Radiator
* Electric Cooling Fan, Pull Type

Chassis and Suspension

* Tubular Front Coilover Supension
* Competition Type Front K-Member
* Parallel Bar 4-Link Rear Coilover
* Unique Performance Products Rear Coilover Supension*

* Denotes upgrade

Related:
Chip Foose and Unique Performance to Build '70 Challenger Homage [internal]

Chip Foose, customizer, illustrator, artist (and all-around decent guy), is extending his association with Unique Performance — builder of six-figure custom muscle-car (don't-call-them) reproductions, like the Foose '69 Camaro, Foose Stallion Mustang and Shelby GT.500E Super Snake. The two are planning to give the Mopar freaks some, with a run of supercars based on the 1970 Dodge Hemi Challenger. Buyers will get a choice of Hemi powerplants (347 ci and 426 ci) hooked to a TKO five-speed tranny, and the cars will feature shaved bumpers, Foose 18" wheels and a custom DuPont paint scheme. A prototype Challenger is scheduled to debut this Thursday, June 15, 2006, with production set to begin next month. Don't ask the price; it'll only make that bank hit you've been considering seem doable. Or else wait until Dodge comes out with its own, albiet less potent, Challenger for around $100,000 less.

Related:
The Sam's Club Camaro by Foose? [internal]