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Toronto, November 23, 2004 - In
provincial court on Monday,
November 22, Daniel Nedelcu and
his numbered company were
convicted of 23 counts of
operating in the motor vehicle
dealer industry without the
benefit of registration. Nedelcu
faces $493,750 in fines and a
4-month jail term – the heaviest
sentence handed down in Ontario
for illegal car sales.
In Ontario, all motor vehicle
dealers and salespeople must be
registered under the Motor
Vehicle Dealers Act (MVDA)
before buying, selling or
leasing vehicles. In the
industry, unregistered
individuals selling vehicles are
known as "curbsiders" and are
subject to prosecution by the
Ontario Motor Vehicle Industry
Council, or OMVIC.
In his arguments before the
Court, Prosecutor Michael Rothe
stated: "Not only must this
sentence serve as a specific
deterrent to the Accused but
more importantly, it must serve
as a general deterrent to the
industry at large. The impact on
consumers warrants a fine that
is not simply a cost of doing
business."
Consumer witnesses testified
they had been misled by Nedelcu.
They further stated that Nedelcu
refused to compensate them even
though in one instance there was
an outstanding judgement.
“Curbsiders are relentless,”
explains OMVIC investigator
Larry Edgar. “They will turn
over stolen, damaged, rebuilt
and odometer-tampered vehicles
to unsuspecting consumers. OMVIC
is committed to going after
curbsider activity and this
conviction will help us send a
strong message to the
offenders.”
In response to the threat
curbsiders pose to both
consumers and the industry,
OMVIC continues to make
apprehension of curbsiders a top
priority. In 2004 alone, OMVIC
has laid almost 2,000 curbsider-related
charges. Industry studies
suggest that as many as 25% of
classified ads are placed by
curbsiders.
Consumers are asked to keep the
following in mind when
considering a motor vehicle
purchase:
- 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, you should contact
OMVIC.
- OMVIC provides complaint
handling services between
consumers and dealers. To file a
complaint, call OMVIC at
1-800-943-6002.
- Transactions conducted through
registered motor vehicle dealers
are protected through the Motor
Vehicle Dealers Compensation
Fund. The fund is financed by
registered dealers and is
available (under specific
criteria) to consumers who may
have suffered a financial loss
from their motor vehicle
transaction. This protection is
lost if buying privately or
through a curbsider.
- 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.
OMVIC is the self-management
organization of the motor
vehicle dealer industry and
administers the Motor Vehicle
Dealers Act – a public
protection statute – on behalf
of the Minister of Consumer and
Business Services. OMVIC’s
mandate is to maintain a safe
and informed marketplace by
ensuring registration of dealers
and salespeople, regularly
inspecting all of Ontario’s
9,000 dealerships, maintaining a
complaint line for consumers and
conducting investigations.
OMVIC’s Board of Directors
includes 9 elected dealers and 3
consumer representatives
appointed by government. OMVIC
is also responsible for
administering the Motor Vehicle
Dealers Compensation Fund.
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