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Toronto, September 25, 2008
– Donald Earle plead guilty to
85 counts of fraud over, 5
counts of fraud under and 1
count of defrauding the public
and was sentenced to three years
in prison after defrauding
customers of over $2 million.
The Ontario Motor Vehicle
Industry Council (OMVIC) – the
provincial regulator of motor
vehicle dealers – was involved
in the investigation that led to
Earle pleading guilty in a
Barrie area courtroom. Earle was
the owner of Barrie RV which
operated on Highway 11 in Oro-Medonte,
from 2001 until July 2005 when
he was finally shut down.
OMVIC revoked Earle’s licence to
operate his dealership after
finding Earle had taken
advantage of hundreds of
customers through consignment
sales of motor homes and
recreation vehicles. Consumers
left motor homes with Earle to
sell on consignment, but in most
cases never received proceeds
from the sales or were misled
about the amount their units
were sold for.
“In Ontario all motor vehicle
dealers and salespersons must be
registered with OMVIC and
operate within the boundaries of
the Motor Vehicle Dealers Act
(MVDA),” Director of Compliance
Laura Halbert noted. “Mr. Earle
chose not follow the rules and
defrauded hundreds of consumers;
we are pleased to see the
sentence recognizes the
significant harm done to his
victims many of whom were
elderly or vulnerable.”
Many of the consumers
defrauded by Earle have been
able to receive some
reimbursement from the Motor
Vehicle Dealers Compensation
Fund – a fund financed by
Ontario dealerships that acts as
a last resort for consumers who
have had problems with their
motor vehicle transactions.
Although consumers can only
receive a maximum payout of
$15,000 right now, legislative
changes under the Motor Vehicle
Dealers Act 2002 will see that
amount rise to $45,000. The
increase in payout will apply to
purchases made on, or after,
April 1, 2009. Also worthy of
note is that the fund is only
available to consumers who have
purchased a motor vehicle, not
trailers, through a registered
dealer in Ontario.
This case serves as a reminder
to the public to keep a few
things in mind when making a
motor vehicle purchase:
- All dealers and
salespersons must be
registered in Ontario. To
verify this, visit
www.omvic.on.ca or give us a
call at
1-800-943-6002.
- OMVIC provides complaint
handling services between
consumers and dealers. To
file a complaint, call OMVIC
at
1-800-943-6002.
- 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 are people
who pose as private
individuals but are in the
business of illegally
selling vehicles. For more
information on Curbsiders, visit
www.omvic.on.ca or call us
at 1-800-943-6002.
About OMVIC
OMVIC administers the Motor
Vehicle Dealers Act – a public
protection statute – on behalf
of the Ministry of Small
Business and Consumer 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
8,600 dealerships, maintaining a
complaint line for consumers and
conducting investigations. OMVIC
is also responsible for
administering the Motor Vehicle
Dealers Compensation Fund on
behalf of a Board of Trustees.
For more information, please
contact:
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