Ex-Gizmondo exec arrested, faces grand theft charges

GizmondoFormer Gizmondo executive officer Stefan Eriksson has been arrested on grand theft charges and is being held without bail. Authorities allege that Eriksson doesn't own the Ferrari that was totaled in February and two other exotic cars, including the Mercedes that was confiscated last month and a second Ferrari that has also been seized. Eriksson has been charged for failing to make payments on the three vehicles, worth a combined $3.5 million, which were imported from the UK. Immigration authorities are also investigating Eriksson's visa status.

In addition, Eriksson could face additional charges related to the February crash. While Eriksson maintains he was not the driver, authorities continue to investigate the incident since evidence points to Eriksson driving the vehicle while intoxicated. Eriksson is also being investigated for fraud, as it appears he purchased the exotic cars in question as part of a failed business venture. British banks claim that Eriksson purchased the cars by using loans. He made a minimum first payment, promising to resell the cars at a higher price and pay back the loans. According to the banks, Eriksson has not made any additional payments.

[Thanks to everyone that sent this in!]

This article was originally published on Joystiq.