“Don’t want the state of California to know anything about this car.” That text message, pulled straight from a 57-count criminal complaint, is one of dozens that California prosecutors say prove a sprawling tax evasion ring involving Montana license plates, luxury dealerships, and buyers who thought they were untouchable.
Late last month, California Attorney General Rob Bonta charged 14 Bay Area defendants with conspiracy to commit tax evasion, filing false sales tax returns, money laundering, and perjury. The scheme allegedly concealed more than $20 million in luxury vehicle purchases stretching back to 2018, costing the state roughly $1.8 million in unpaid taxes.
The cars weren’t Camrys. Among the vehicles investigators flagged: a $1.8 million McLaren Elva, a $1.5 million Porsche 918 Spyder, and a $1.26 million Ferrari F12tdf. All supposedly purchased for use outside California. All allegedly driven and garaged within state lines.
The recipe has been an open secret for years. Form a limited liability company in Montana, which has no statewide sales tax. Buy the car through that LLC, slap Montana plates on it, and save tens of thousands of dollars on a single purchase.
On a million-dollar car in California, the savings exceed $70,000.
What makes this case different isn’t the scheme itself — it’s the sheer stupidity of the evidence trail. Prosecutors obtained text messages in which defendants discussed the fraud in plain, almost gleeful language. One wrote: “70k saved — I can’t believe the registration lasts for 5 years — that’s crazy. Stupid California. Paid 3k to own a 600k car for 5 years — lol in Cali that’s like 75k for 5 years. Hella dumb.”
Another text referenced a fake bill of lading — the shipping document that’s supposed to prove a car left the state — costing just $200 to fabricate for a Lamborghini Urus pickup. When one defendant asked whether Montana-plated drivers had run into trouble, the reply was casual: “Not yet. But they are always paranoid lol.”
That paranoia turned out to be well-founded. California deployed license plate readers to identify Montana-registered vehicles regularly cruising Golden State roads. Since 2023, the state DMV has opened more than 80 criminal investigations, identified 601 fraudulently registered vehicles, and recovered $2.3 million in unpaid taxes and fees.
The state also published a list of cities with the most suspicious sales. Beverly Hills led the pack with 416 flagged transactions — shocking absolutely no one. Costa Mesa followed with 359, Van Nuys with 273, San Diego with 269.
Investigators identified nearly 500 California dealerships involved in more than 2,500 sales to buyers claiming Montana residency. The complaint alleges dealership employees actively conspired with customers and shipping agents to create false paperwork. This wasn’t just buyers gaming the system on their own.
California isn’t done. The Department of Tax and Fee Administration announced it will now scrutinize every vehicle sale made to a Montana purchaser. The state also has its eye on sales routed through other no-sales-tax states like Alaska, Delaware, New Hampshire, and Oregon.
California isn’t alone in this crackdown, either. Utah began investigating Montana-registered cars and boats last year. And in Tennessee, YouTuber WhistlinDiesel was arrested twice — once late last year and again in early 2026 — on tax evasion charges tied to a Montana-registered Ferrari.
Montana’s LLC registration loophole still exists, but the walls are closing in from every direction. States are sharing data, deploying surveillance technology, and prosecuting aggressively. The days of bragging about beating the system via text message while parking your Montana-plated McLaren in your Beverly Hills driveway appear to be over.
The people who could most easily afford to pay chose not to, and now the receipts — literal and digital — are public record.
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