Registrar's Decision 13-12-001

HEARING FILE NUMBER: 13-12-001

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

DATE OF DECISION: August 18, 2014

COMPLAINANT: Jason Crombie

LICENSEES/UNLICENSED PERSON: Sangam Auto Group Ltd. dba Auto Empire; AutosalesCanada.com Enterprises Inc. dba Trinity Auto Center; Adil Rizwan; and Baldip Singh Sachdeva

Issues

• The complainant alleged that Auto Empire, Trinity Auto Center, Adil Rizwan and Baldip Singh Sachdeva (collectively the Respondents) used his personal and financial information provided for the purchase and financing of a boat, to obtain financing from TD and Ally (later acquired by RBC) for the purchase of two vehicles registered in his name, without his consent or knowledge,
• The complainant learned he was the owner of the two vehicles having received a parking ticket in the mail for one
• The allegations included that the Respondents falsified credit applications, financing documents, purchase agreements, and transfer/tax forms, and placed his signature or a forged his signature, on those documents without his knowledge or consent
• The legislative breaches alleged against the Respondents were:
• Breach sections 4 and 5 of the Business Practices and Consumer Protection ActB.C. 2004 c. 2 (“BPCPA”) (deceptive acts or practices) by:
• failing to advise Jason Crombie (the “Complainant”) that a 2008 Mercedes GL450 (the “Mercedes”) and a 2007 Porsche Cayman (the “Porsche”) (collectively the “Vehicles”) had been purchased and financed in his name,
• failing to deliver the Mercedes and Porsche to the Complainant,
• using documents to purchase, finance and register the Mercedes and Porsche that were not signed by the Complainant,
• failing to deliver a copy of the purchase agreement and finance documents at the time of transaction, and
• failing to disclose the description and condition of the Mercedes and Porsche prior to or after the transaction.
• Breach sections 8 and 9 of the BPCPA (unconscionable acts or practices) in relation to the Mercedes for the reasons noted in paragraphs 1(a)(i) to (v) above and by obtaining financing knowing the Mercedes would be shipped out of Canada and would not qualify for financing.

Outcome

The Registrar found and order:

• The Registrar concluded that there was no consumer transaction as defined by the legislation. The Business Practices and Consumer Protection Act and the consumer protection disclosure provisions of the Motor Dealer Act do not apply to this case. On the specific allegations, the Registrar continued the review to assess whether the past conduct of the Respondents was such that it would not be in the public interest that the Respondent’s continued to be licensed under the legislation,
• The Complainant did not agree and consent to the purchase of the two subject vehicles, and the signatures on the finance documents were not his,
• AutosalesCanada.com Enterprises Inc. dba Trinity Auto Center was the selling dealer in this transaction,
• Adil Rizwan falsified documents submitted to TD Bank and Ally (later acquired by RBC) to finance the sales,
• Adil Rizwan provided falsified documents at the hearing in defense of the allegations,
• While Adil Rizwan had been doing some work for Sangram Auto Group Ltd., the evidence shows Sangram Auto Group Ltd. was not in operation as Auto Empire at the time of the transactions and was not the selling dealer in the two subject transactions, and its owner and principle Baldip Singh Sadcheva was unaware of the actions of Adil Rizwan,
• Another hearing date was ordered to address compliance action based on the findings of this hearing, and
• The Registrar found Mr. Rizwan’s conduct of such a concern, that the Registrar made an interim order suspending the salesperson licence of Adil Rizwan and noted that if Auto Empire continued to enlist Mr. Rizwan’s service while his salesperson licence was under suspension, then Auto Empire’s dealer licence may need to be reviewed.