Mississauga car dealership suspended after allegations of forgery and odometer tampering
Katherine DeClerq, CTV News Toronto
Published Tuesday, September 25, 2018 7:47PM EDT
Last Updated Wednesday, September 26, 2018 8:19AM EDT
A car dealership in Mississauga has been suspended after an investigation by an oversight body found that the dealer was allegedly forging documents, selling rebuilt wrecks, and rolling back the odometers of their vehicles.
In a news release issued Tuesday, the Ontario Motor Vehicle Industry Council (OMVIC) said that the dealership known as KK Motors Canada Inc., located near Mississauga Road and Britannia Road West, has been suspended immediately and cannot “legally sell, lease, buy or consign vehicles.”
The company’s only dealer has also had his registration suspended.
The suspension order was issued after an investigation by OMVIC found that the dealership “purchased insurance write-offs from salvage auctions,” repaired them and then sold them off to unsuspecting customers.
“I can tell you that the concerns that OMVIC have to do with the fact that vehicles were being purchased, in the dealership’s name, from salvage auctions and they were being sold, not apparently by the dealer but by others on behalf of the dealership,” Terry O’Keefe, director of communications and education with OMVIC, told CTV News Toronto.
“What was most troubling was that in each case the dealership had allegedly used the identity of a previous customer and transferred these vehicles into that customer’s name without their knowledge or consent before they were being sold off by these agents, if I can use that term, on behalf of the dealership.”
An investigation has also been launched into the businesses and individuals who were actually handling the sales.
In the news release, OMVIC also said that six of 13 vehicles investigated had rolled-back odometers, making it appear as though the vehicles had a lower mileage.
O’Keefe said that dealerships are required to disclose the true distance a vehicle has travelled.
OMVIC is urging previous customers of KK Motors Canada Inc. to have their vehicle inspected by an independent mechanic and to run a credit check to ensure that their identity was not used fraudulently.
O’Keefe recommends new car buyers ask for a used vehicle information package and a Canadian Vehicle History Report before making a purchase.
KK Motors Canada Inc.’s dealer told CTV News Toronto he disputes the allegations and will attend a hearing to try and have his licence reinstated.
-With files from CTV News Toronto's Pat Foran