|
Toronto, July 25, 2003 -
Registration under the Motor
Vehicle Dealers Act (MVDA) has
been refused for 611 Auto Centre
Inc. and its owner Bozena
Kostrubiec.
The decision comes after hearing
evidence that Kostrubiec
provided contradictory
information to the Ontario Motor
Vehicle Industry Council (OMVIC)
and housing authorities. Also
affecting the decision was
evidence related to the
involvement of Kostrubiec’s
husband in her proposed
business. Her husband, Robert
Kostrubiec, sold vehicles
without the benefit of
registration. In the industry
this illegal activity is known
as curbsiding and is an offence
subject to prosecution.
OMVIC -- the self-management
body of the motor vehicle dealer
industry responsible for, among
other things, dealer and
salesperson registration --
issued a Proposal to Refuse
Kostrubiec’s registration when
inconsistencies were found in
her application. Kostrubiec
stated assets in Poland would
finance the dealership, yet
documents she filed with the
cooperative that provided
subsidized housing for her and
her husband indicated they had
no assets.
Mary Jane South, OMVIC’s Deputy
Registrar, stated concerns over
Robert Kostrubiec’s involvement
in the dealership also played
into the refusal: “During an
inspection of the dealership’s
premises, it was noted Robert
Kostrubiec answered most of the
questions and appeared to be the
controlling person in the
relationship. This was cause for
concern given his outstanding
charges. Mr. Kostrubiec
currently has criminal charges
pending against him in relation
to stolen vehicles.”
Kostrubiec appealed the
Registrar’s Proposal to Refuse
Registration and the matter was
heard before the Licence Appeal
Tribunal – an independent agency
of the Ministry of Consumer and
Business Services.
During the hearing Detective
Sergeant Steven Spencer of the
London Police Services testified
that businesses operated
directly adjacent to the
dealership’s proposed location
at 611 Clarke Side Road have
been connected with criminal
activity. One individual, stated
Spencer, had been involved in a
chop shop.
Kostrubiec testified she was not
concerned about the character of
Mister Mechanic and Tommy D’s –
the two businesses located near
611 Auto.
The Tribunal stated the
associations with Mister
Mechanic and Tommy D are of
legitimate concern. The Tribunal
also agreed with the Registrar’s
position and stated there was
sufficient evidence to conclude
Kostrubiec knew or ought to have
known her spouse was curbsiding
and that she had every intention
of having him play an active
role in the business. “That
involvement,” stated the
Tribunal, “raises very serious
concerns about the Applicants
and their ability to operate
within the law. The fact of
misleading information being
provided, both to OMVIC and the
housing authority, also tends to
suggest that the Applicants will
not function with honesty,
integrity and within the law.”
Without registration under the
MVDA, the Kostrubiecs are unable
to sell vehicles in Ontario.
Full text of the decision is
available through OMVIC or the
Licence Appeal Tribunal.
Consumers interested in making a
motor vehicle purchase are
encouraged to keep the following
in mind:
- All dealers and salespeople in
Ontario must be registered. To
verify registration, visit
www.omvic.on.ca or call
1-800-943-6002.
If you believe
someone is in the business of
buying, selling or leasing
vehicles and is not registered
with OMVIC, please contact
OMVIC.
- OMVIC provides a free mediation
service between consumers and
dealers. To speak with a
mediator, call OMVIC at
1-800-943-6002.
- Under certain circumstances,
purchases made through a
registered dealer are protected
by a dealer-funded compensation
plan.
Consumers who purchase
vehicles through private sales
are not protected through this
plan and cannot apply to it.
- Curbsiders pose as private
individuals, but are actually in
the business of illegally
selling vehicles. In most cases
the vehicles are stolen,
odometer-tampered or have liens
against them. If you decide to
buy privately, ensure the seller
provides a Used Vehicle
Information Package, and
consider having the vehicle
checked by an independent
mechanic you trust.
|
