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Andrea Moda is the obvious example, purchasing Coloni's assets but not their entry and then after numerous calamaties before being thown out of F1 for bringing the sport into disrepute. However, Moreno somehow managed to qualify for Monaco.
For what its worth, I think that Life can probably claim to be F1's worst team; a substantial overweight car and a W12 engine that had a reported 450bhp and never come close to qualifying for a race. They disapeered befoe the end of '90 and haven't been heard of since.
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