Registrar's Decision 19-12-003

Issues:

• Federation Auto Ltd. (“Federation”) applied to be registered as a motor dealer.
• It is alleged that Federation’s owner and dealer principal, Alaa Daloussi’s (# 211544) past conduct as a motor dealer in Manitoba poses a concern to the public interest.
• It is alleged that Alaa Daloussi failed to make truthful declarations about his past conduct and court cases in Manitoba on the application for dealer registration, which is grounds to consider the applicant ungovernable.
• It is alleged that Alaa Daloussi advertised vehicles that were not suitable for transportation in Manitoba and allowed them to be test driven, which is a violation of Manitoba and British Columbia law.
• It is alleged that Alaa Daloussi operated a dealership without having the required dealer permit in Manitoba, known as “curbing” in British Columbia, and it is an offence to do so.
• The Authority submits that the amalgamation of the aforementioned concerns suggests that Mr. Daloussi will not act with honesty and integrity, will not act in accordance with the law, and is willing to withhold information from his regulator making governing him doubtful.
• The Authority proposes that Federation’s application for registration be refused and conditions be placed on Alaa Daloussi’s salesperson licence.
• Key factual and legal findings:
• Manitoba Public Insurance (“MPI”), who licenses motor dealers in that province, confirms it had several complaints filed against Alaa Daloussi’s dealership and noted several concerns with the dealership’s operations.
• Alaa Daloussi did not deny the Manitoba selling process in his application; however, he submits that he would have subject vehicles inspected and repaired to have the MPI order on the vehicle removed. Selling vehicles that are not suitable for transportation would also be a breach of British Columbia legislation and the duties of a motor dealer in this province.
• Alaa Daloussi submits that he won all cases filed against him in Manitoba, a review of said cases shows that is incorrect.
• The court cases filed against Alaa Daloussi in Manitoba note that he was found to have misrepresented finance and lease agreements, as well as applying excessive late payment fees. In British Columbia, such conduct would be a contravention of the Business Practices and Consumer Protection Act (“BPCPA”), which prohibits unconscionable acts, including excessive charges.
• In the application materials to register Federation, is a copy of Mr. Daloussi’s temporary work permit, which expires on January 7, 2020 and one of its conditions says Mr. Daloussi is to leave Canada by January 7, 2020. Based on this evidence Federation’s principal and sole declared salesperson is not authorized to work in Canada.