David Goldstein Reports

Goldstein Investigation: Alleged Car Embezzler

LOS ANGELES (CBS) ― Jason Lesner is a sign of the times.

"I was in the mortgage industry and my wife and I were looking to cut some fat off our bills."

He used to drive a BMW -- but wanted to downsize to this Toyota. In order to do it -- first he had to get out of his BMW lease.

A decision he now regrets...

"He scammed me. He scammed me big time."

Lesner advertised on a website called 'Swap-A-Lease' which helps people find someone to take over their lease. Within a few days, he heard from this man -- Geoffrey Hull.

He ran Red Carpet Motoring. They claimed a piece of mind payment guarantee program! For a fee, Hull agreeed to act as a middleman to transfer the lease. Have someone else take over the payments.

But just 24 days after giving up his keys...

"I got a call from the impound yard saying the car had been totaled."

The car had $48,000 in damages after an accident in Las Vegas. But, it turns out, the lease was never transferred. Lesner was liable.

"BMW sent me a bill for $72,000. They said they would auction the car off for parts and they'll minus that from the total and be sending me a bill."

"In your mind", I asked, "was your car stolen?"

"In my mind my car was stolen. Heck yeah, my car was stolen."

But his insurance company didn't see it that way.

"Because I handed the keys to the perpetrator, they don't consider it stolen. They consider it embezzled."

He's not alone. Trent White also contracted with Hull and Red Carpet Motoring last September when he wasnted to get out of his Lexus lease.

"It basically seemed hassle free. Too good to be true."

"And," I asked, "it was?"

"Yes."

The car is gone, and his insurance company also won't cover it.

"I don't have the vehicle. I'm making payments on it. To me, that's stolen."

DMV Investigators say Red Carpet Motoring may have victimized up to 200 people before they shut their doors earlier this year. But what many of the victims may not know is, in California, it's illegal to sublease a car without the leaseholders permission.

"Is it a violation of the law? Yes. Is it the kind of thing that we're going to turn our backs on it? No."

Hull is being investigated by the DMV for embezzling dozens of high-end vehicls. They say he's smart. A USC Marshall Business School graduate. He allegedly claims to take over the lease -- then takes the cars. In some cases they've been recovered. Others are still missing. Hull was arrested earlier this week on an unrelated parole violation -- days before investigators knew we were going to expose his operation.

"It is a bit of an adjustment going from BMW to Toyota Rav 4."

It's little consolation for people like Jason Lesner. Or Trent White. And others who have been victimized....looking to save some money in hard times...now learning a hard lesson that will cost them dearly.

I'm David Goldstein reporting, for CBS 2 News.

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