Dealer Licence Refused Because of Husband's Involvement


Toronto, March 24, 2000 - Irina Shoosterman has been refused registration as a motor vehicle dealer due to concerns about the possible involvement in the business of her husband, Alex Shoosterman.

On September 3, 1999 Alex Shoosterman was convicted of offences under the Business Practices Act and the Motor Vehicle Dealers Act (MVDA) in relation to his operation of a dealership known as Seghna Auto Sales. These convictions arose out of an incident involving odometer tampering and misrepresentation to a consumer. Mr. Shoosterman had pleaded not guilty. In finding Mr. Shoosterman guilty of these offences the Justice of the Peace commented that he did not believe a word Mr. Shoosterman said concerning the incident which lead to the charges. A fine of $3,500 was imposed for each count. Mrs. Shoosterman attended court with her husband.

The day before his conviction, however, Mr. Shoosterman met with an inspector representing the Ontario Motor Vehicle Industry Council (OMVIC), to discuss his wife’s application for registration as a dealer under the corporate name of Tormont Auto Sales Ltd. OMVIC is the organization responsible for registering dealers and salespeople under the Ontario Motor Vehicle Dealers Act. It is OMVIC’s belief that Mr. Shoosterman initiated his wife’s application because he knew his days in the motor vehicle industry were numbered commented Mary Jane South, Deputy Registrar with OMVIC. OMVIC’s job is to protect consumers, and given Mr. Shoosterman’s past record, we refused the new application for registration.

The Registrar’s refusal of Mrs. Shoosterman’s application was appealed to the Commercial Registration Appeals Tribunal. At the tribunal hearing, which was held on February 18, 2000, Mrs. Shoosterman, whose occupation on the dealer application was listed as an office manager, stated that her husband would have nothing to do with the operation of the dealership. Mr. Shoosterman also testified that he no longer had any interest in motor vehicle sales. In a decision dated February 23, 2000, the Tribunal directed the Registrar to carry out the proposal to refuse registration to Mrs. Shoosterman and Tormont Auto Sales Ltd. In its decision, the Tribunal stated that the evidence given by Irina Shoosterman and Alex Shoosterman regarding the method of carrying out the business was not credible.

OMVIC, the industry’s self-management body, regularly inspects motor vehicle dealers to ensure their compliance with the Motor Vehicle Dealers Act. In order to maintain their OMVIC registration, dealers must conduct themselves with honesty, integrity, within the law and be financially responsible, says Ms South. It is an offence under the MVDA to be a motor vehicle salesperson or dealer while not registered.

Consumers who purchase vehicles from registered dealers enjoy the protection of the Motor Vehicle Dealers Compensation Fund. Under specific circumstances, consumers may be entitled to compensation if they have dealt with a registered dealer.

For more information, call OMVIC at 416-226-4500, 1-800-943-6002 (outside Toronto), or email registrarmvda@omvic.on.ca.