Entrapment by Police
Preceding Margaret Thatcher's orders to cut off funds to DMC, DeLorean was getting desperate for outside funds to continue production. After investments from those such as Johnny Carson and Sammy Davis, Jr. did not fully procure the ongoing of DMC operations, DeLorean became desperate. Undercover agents from the FBI approached De Lorean suggesting that he hide cocaine in the door panels of his cars that were shipped overseas, which he agreed to do. On October 19, 1982, DeLorean was charged with the trafficking of cocaine by the US Government.

During the trial, tapes were leaked to the media showing that De Lorean told the undercover agents that he was not interested in the deal and begged to be let go. He agreed to the deal only after the agents threatened to kill his daughter if he didn't go along. He was found not guilty due to entrapment on August 16, 1984. DeLorean successfully defended himself with a procedural defense, arguing that the police had asked him to supply the money to buy the cocaine . His attorney stated in Time (March 19, 1984), "This [was] a fictitious crime. Without the government, there would be no crime."

It is common belief of many DeLorean DMC-12 owners and fans that the cocaine sting may have been related with the bridges John Z. DeLorean had burned when he left General Motors. According to the Game Show Network's Anything to Win, DMC's previously awaited funds had finally been secured for the continuation of production of the DMC-12 on the same day of the Government's sting operation, and his associates were looking for him to sign the paperwork.