The State of California has filed several civil suits against Tom and Mike Corbin and others claiming that they misled investors involved in their Sparrow electric car operation.
The complaints, filed in San Francisco Superior Court, said that the Corbins raised more than $10 million from the sale of securities and unregistered franchises.
The state is seeking a court order to freeze the assets of the Corbins and others as well as of the Corbin car companies. It is also seeking civil penalties of $25,000 for each violation, and the state is asking that the court order those named to pay back all “profits and compensation obtained as a result of the violations of law” as outlined in the complaints.
Finally, it wants the court to order them to permanently stop these business activities.
The actions do not apply to Corbin-Pacific, the motorcycle accessories company operated by Mike and Tom Corbin in Hollister, Calif.
Also named were Tom Corbin’s wife, Jennifer Wilson, and Michael D’Andrea and Frank Anthony Luzi, each described as “an officer and/or a member of the control group of Corbin Motors.”
No court date has been set.
plenty of sizzle
Corbin Motors began operating in 1999 and was run primarily by Thomas W. Hanagan, also known as Tom Corbin, according to the complaint.
Based in Hollister, Calif., the company operated out of the facility used by Corbin- Pacific to produce motorcycle seats and other motorcycle accessories. Corbin-Pacific is controlled by Michael Hanagan, also known as Mike Corbin.
The Corbin electric car, dubbed the Sparrow, became a world-wide media star and regularly appeared in movies, magazines and newspapers.
Unfortunately, Corbin Motors’ great idea never translated into large numbers of automobiles. Instead franchisees, owners and investors were left with cars that didn’t operate and promises that weren’t filled.
Copyright 2003 Powersports Business