In recent developments, the Better Business Bureau and FOX News have reported a troubling surge in car repair fraud cases. This growing issue has caught the attention of federal authorities, including the FBI, as victims begin to fight back against substantial financial losses. Recovering stolen vehicles or embezzled funds has proven to be an uphill battle, often leaving victims with nothing but bitter memories.
A wave of legal action has been unleashed against Defenders Northwest, LLC, a car restoration shop located in Gig Harbor, Washington. The business, which also deals in camping gear, is operated by Michele and Brian Hall, a husband-and-wife team. Multiple lawsuits accuse them of orchestrating a long-running fraud scheme that has cost their customers millions of dollars.
Defending Defenders Northwest is attorney Philip H. Lo, a partner in a well-known law firm specializing in insurance defense, alongside Shawn Harju from Federal Way, Washington. However, these legal representatives have also become embroiled in controversy. Harju, notably, is facing her own lawsuit over an unrelated $20 million invoice scam. Meanwhile, Lo has been sanctioned by the court for obstructing the inspection of a vintage car, which his clients are accused of embezzling through fraudulent means. Allegations have surfaced suggesting that Lo may have crossed ethical boundaries, potentially engaging in criminal conduct to shield Defenders Northwest from justice. Neither Lo nor Harju responded to repeated requests for comment.
In a twist, experts have identified the car presented by Defenders Northwest for inspection, following a court order, as a worthless piece of junk, far from the original vehicle entrusted by the customer.
Authorities and victims alike are now urging car enthusiasts to exercise caution, warning against being swayed by glossy social media profiles or glowing online reviews, which may be deceptive. A recent case involved a Hawaii car enthusiast who was swindled out of $250,000 for a Mercedes Brabus G63 that was never delivered, further highlighting the dangers of relying on potentially fake reviews.
In related news, U.S. Attorney Trini E. Ross recently announced charges against Clark P. Rittersbach, a Florida man accused of wire fraud. Rittersbach, who owned Concours Classic Motor Cars in New York, allegedly defrauded customers out of at least $1.15 million by billing for restoration work that was never completed. The victims included a 1964 Porsche 356C, a 1932 Duesenberg Murphy, and a 1926 Rolls Royce “Silver Ghost,” all of which were either not delivered or not restored as promised.
Additionally, a Lawton, Iowa-based car restoration company was ordered to pay over $7 million for breaching a restoration agreement involving three vehicles. The case, brought by William Oesterle, resulted in a significant jury award against The Healey Werks Corp.
Back in Washington, Brian and Michele Hall of Defenders Northwest face serious allegations. Victims claim the couple engaged in an eight-year scheme involving fraudulent billing, fabricated vandalism claims, and ultimately, a missing vehicle. The Halls allegedly retaliated by launching defamatory attacks on their victims and the attorneys representing them. In July 2024, another fraud lawsuit was filed against Shawn Harju, who has been linked to the Halls both professionally and personally.
Court documents detail how the Halls allegedly defrauded customers out of a 1984 Land Rover Defender 130, which had been entrusted to them for restoration over a decade ago. Despite the wholesome image the Halls cultivated online, their actions have now come under intense scrutiny.
Victims have reported the incident to local law enforcement and the Washington State Office of the Attorney General. They have also filed lawsuits, though their insurance company, Hagerty, has thus far declined to investigate further, leaving victims in a difficult position as they seek justice against the alleged fraudsters at Defenders Northwest.
