Registrar's Decision

Compliance > Registrar’s Decisions > Registrar’s Decision 09-70100 & 09-70695

Registrar's Decision 09-70100 & 09-70695

File Number: 09-70100 & 09-70695

In the matter of THE MOTOR DEALER ACT R.S.B.C.1996 C.316
and THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT S.B.C. 2004 c.2

Complainant: ISAAC ROBERTS AND THE MOTOR DEALER COUNCIL OF BRITISH COLUMBIA dba THE MOTOR VEHICLE SALES AUTHORITY OF BRITISH COLUMBIA

Licensee/Unlicensed person:

MATRIX AUTO SALES LTD. AND REZA MOHAMMAD FOROGHI AND HABIBOLLAH REZAPOOR AND RAMIN KARAMALI

Issues:

Mr. Roberts purchased a Toyota Tundra from Matrix.
The Tundra had been a total loss and was rebuilt by Matrix after they purchased it from ICBC.
Matrix represented the Tundra as compliant with the Motor Vehicle Act and suitable for transportation.
The Tundra failed a Provincial Private Vehicle Inspection shortly after Mr. Roberts purchased the Tundra.
During the investigation it came to light that Ramin Karamali was an owner of Matrix and a salesperson, while not licensed. On April 23, 2007, Registrar Smith had barred him from such activity for at least three years.
Matrix had failed to advise the Registrar of its ownership change.
Matrix chose to settle with Mr. Roberts and refund him his money. A hearing continued in order to determine if Matrix, Foroghi and Rezapoor should continue to be licensed or Karamali should ever be licensed.
Matrix argued that this transaction was not a “genuine consumer transaction” because of their suspicion of illegality in the cash used to purchase the Tundra, applying the federal Proceeds of Crime (Money Laundering) Terrorist Financing Act.
Matrix argued Mr. Roberts damaged the vehicle after he bought it. Alternatively, Matrix argued that they did not intentionally or were not willfully blind to the Tundra’s damage prior to sale.

Outcome:

There was no evidence that the damage in question was caused by Mr. Roberts.
The evidence was that the damage existed prior to the sale of the Tundra to Mr. Roberts.
Matrix committed a deceptive act or practice by representing by words and/or by conduct that the Tundra met the requirements of the Motor Vehicle Act.
The allegation that the cash used to buy the Tundra was illegal was without basis.
Matrix and Mr. Foroghi attempted to hide information from the Registrar that the law required them to divulge. They also allowed Mr. Karamali to act as a salesperson while unlicensed.
Mr. Karamali was found to be acting as a salesperson, while unlicensed, and to be an owner of Matrix contrary to the decision of Registrar Smith on April 23, 2007.
Mr. Karamali had previously pled guilty to a charge of selling motor vehicles while unlicensed, odometer tampering and aiding and abetting consumers to evade paying taxes: R. v. Karamali 2006 BCPC 0454 (Prov. Crt.) the sentence varied on appeal.
It was in the public interest to cancel the motor dealer registration of Matrix.
It was in the public interest to cancel the salesperson licence of Mr. Foroghi and bar him from re-applying for three years. He would also not be able to apply to run a dealership until two years after he was re-licensed and in good standing.
Whether Mr. Foroghi would be granted a licence or registration in the future depended on the facts that exist in the future.
It was in the public interest to order a lifetime ban on Mr. Karamali becoming a salesperson or being an owner of a motor dealership. It was also noted that any dealership he was associated with jeopardized their registration.
No action was taken against Mr. Rezapoor as he had sold his shares in Matrix before these issues came to light and there was no evidence of his involvement in the Tundra sale or trying to hide information from the Registrar.

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