TORONTO, Sept. 24, 2018 /CNW/ - Allegations of forgery, odometer tampering, fraudulent vehicle transfers and illegal sales has resulted in the IMMEDIATE SUSPENSION of KK Motors Canada Inc., 6295 Mississauga Rd, Unit 215A, Mississauga, and of Kajendran Kasippillai, KK's sole officer and director, by Ontario's regulator of vehicle sales, OMVIC. As a result, KK Motors Canada Inc. and Kasippillai may not legally sell, lease, buy or consign vehicles.
OMVIC found the dealer purchased insurance write-offs from salvage auctions. These vehicles were repaired and sold to consumers, often not by KK Motors directly, but rather by unregistered businesses or individuals working for, or with, the dealer. "OMVIC believes that in order to distance themselves from these vehicles, KK Motors Canada Inc. forged documents and fraudulently transferred these vehicles into the names of past customers, prior to making the vehicles available for sale by the unregistered businesses and individuals, " states John Carmichael, OMVIC CEO and Interim Registrar. "Most purchasers didn't know about KK Motors; they thought they were buying the vehicles privately."
Of 13 vehicles OMVIC investigated, six appeared to have rolled-back odometers. One, a 2007 Honda Odyssey was sold in June by one of KK Motors' associated sellers with an odometer reading of 141,411 kms; four months earlier the mileage for the Odyssey was reported as 335,230 kms. "OMVIC is alleging the fraudulent manipulation of odometers was done by, or on behalf of, KK Motors Inc.," explained Carmichael.
An investigation of the unregistered businesses and individuals who actually sold the vehicles is ongoing.
KK Motors Canada Inc. and Kajendran Kasippillai have a past history of non-compliance: in 2012 the dealer was found in breach of the Motor Vehicle Dealers Act and fined $1,500 for advertising a vehicle without disclosing in the ad that it had been placed by a registered dealer. Additionally, the dealer was found to be in breach of OMVIC's Code of Ethics and fined $5,000 in 2014 for failing to properly disclose material facts related to the past use, history and condition of vehicles it sold, including significant accident repair histories.
OMVIC only issues an immediate suspension order when the regulator believes a dealer's conduct may place the car-buying public at risk. Note: a dealer may appeal an Immediate Suspension Order and a hearing will be held within 15 days before the Licence Appeal Tribunal (LAT). The Tribunal will determine if the order should be extended until a final determination is made regarding the associated Proposal to Revoke Registration.
Advice to Past Customers of KK Motors Canada Inc.
OMVIC encourages consumers who have previously purchased from KK Motors Canada Inc. or Kajendran Kasippillai to have their vehicle inspected by an independent mechanic for problems not disclosed by the dealer/salesperson. Consumers should also consider purchasing a Used Vehicle Information Package (UVIP) available from ServiceOntario, or a CARPROOF/CARFAX Canada Vehicle History Report to check odometer histories.
OMVIC also encourages previous KK Motors Canada Inc.'s customers to run a credit check to ensure that their name/identity was not used fraudulently, and to visit any ServiceOntario location to purchase a 'personal history' report of all vehicles that have been registered to them. This is sometimes referred to as a personal RIN search. The cost is $12.
CONSUMERS ARE WARNED not to buy or lease vehicles from, or sell or consign vehicles to, KK Motors Canada Inc. or Kajendran Kasippillai while the dealer's registration is suspended. Consumers who trade with an unregistered business or individual are not protected by the Motor Vehicle Dealers Compensation Fund.
Consumers with questions or concerns should contact OMVIC's Complaints and Inquiries Team at: 1-800-943-6002x3942.
About OMVIC Registration
Ontario's Motor Vehicle Dealers Act (MVDA) requires all dealers and salespeople be registered with OMVIC. Unregistered selling (curbsiding) is a serious offence: individuals convicted of curbsiding can be fined $50,000 and/or be jailed for up to two years less a day.
OMVIC (Ontario Motor Vehicle Industry Council) administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services. OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario's 8,000 dealerships and 27,900 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions (or discipline proceedings) of industry misconduct and illegal sales (curbsiding). OMVIC also administers the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.
About the Motor Vehicle Dealers Compensation Fund
The Motor Vehicle Dealers Compensation Fund is funded by Ontario's registered motor vehicle dealers and provides compensation to consumers who have a valid claim against an Ontario-registered dealer. Qualifying consumers may be eligible to receive up to $45,000 for each valid claim to the Compensation Fund. Since its inception on July 1, 1986, the Compensation Fund has paid out more than $5 million to consumers.
SOURCE Ontario Motor Vehicle Industry Council (OMVIC)
For further information: Terry O'Keefe, Director of Communications, 416-226-4500x3525, [email protected]; Amanda Risser, Senior Communications Officer, 416-226-4500x3172, [email protected]; Daphne Boxill, Communications Officer, 416-226-4500x3185, [email protected]