Registrar's Decision

Compliance > Registrar’s Decisions > Registrar’s Decision 20-12-014

Registrar's Decision 20-12-014

HEARING FILE NUMBER: 20-12-014

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: June 21, 2021

COMPLAINANT: Vehicle Sales Authority of BC (the “Authority”)

LICENSEE/UNLICENSED PERSON:

Pro-Edge Canada Ltd. (#proposed wholesaler W41815) and Mikhail Serov

INTRODUCTION:

Mikhail Serov applied to have Pro-Edge Canada Ltd. licensed as a wholesaler. An investigation was commenced due to the prior criminal convictions of Mikhail Serov. There are concerns about the criminal convictions as well as a concern that Mikhail Serov was less than candid and withheld information on the wholesaler application materials.

ISSUES:

Not being candid and transparent with regulators:

Mr. Serov made a false declaration on his wholesaler application that he had not had a licence in another industry (ex. real estate) suspended or revoked. The atfact is that Mr. Serov had been disciplined by the Insurance Council of British

Columbia and had had his insurance adjuster licence suspended for twice failing to advise the Council he was facing criminal charges.

Criminal convictions :

In 2015 Mikhail Serov was convicted on two indictable offences involving

marijuana production and possession for the purpose of trafficking.

OUTCOME

The Registrar refused to licence Pro-Edge Canada Ltd. as a wholesaler. The Registrar found Mr. Serov’s past criminal convictions, his interaction with the Insurance Council of B.C. and his making a false declaration on his wholesaler application showed Mr. Serov was ungovernable and could not be trusted to act with honesty. The Registrar found Mikhail Serov unacceptable as an associate or as a representative of a wholesaler and ordered a two-year prohibition on him from applying to obtain a licence as a wholesaler, either personally or as an associate, or being accepted as a wholesaler representative.

LEGISLATION CITED

Motor Dealer Act, R.S.B.C. 1996, c. 316

Business Practices and Consumer Act, S.B.C., 2004, c. 2

Motor Vehicle Act , R.S.B.C. 1996, c. 318

Motor Dealer Act Regulation , B.C. Reg. 447/78

Wholesaler Licensing Regulation, B.C. Reg. 203/17

Interpretation Act , R.S.B.C. 1996, c. 238

Human Rights Code , RSBC 1996, c. 210

Ontario Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30

CASES CITED

B.C. Council of Licensed Practical Nurses v. Mans & Humphreys v. B.C. Council of Human Rights, 1993 CanLll 1501 (B.C. Court of Appeal)
Best Import Auto Ltd. v Motor Dealer Council of British Columbia, 2018 BCSC 834 (BC Supreme Court)
Best Import Auto Ltd. v Motor Dealer Council of British Columbia, 2018 BCSC 834 (BC Supreme Court)
Fryer v. Motor Vehicle Sales Authority of British Columbia, 2015 BCSC 279 (BC Supreme Court)
Re Best Import Auto Ltd. et al. (BC Supreme Court)
Re: Best Auto Ltd. & Shokohi (October 12, 2018, Hearing File 18-06-005, Registrar)
Re: Best Import Auto Ltd. et al. (Hearing file 17-08-002, Registrar, November 28, 2017)
Re: Bob Shokohi (October 12, 2018, 18-06-005, Registrar)
Re: Carmel Custom Contracting Ltd. & Jason Coburn (April 5, 2018, 18-03-001, Registrar)
Re: Justin Plosz (October 22, 2019, 19-05-004, Registrar)
Registrar, Motor Vehicle Dealers Act v Vernon, 2016 ONSC 304 (Ontario Superior Court of Justice)
Toronto (City) v. C.U.P.E., Local 79, 2003 SCC 63 (CanLII), [2003] 3 SCR 77 (Supreme Court of Canada)
Woodward Stores (British Columbia) Ltd. v. McCartney, 1983 CanLll 444 (B.C. Supreme Court)

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