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OMVIC Blog: Car Buying Tips

Newmarket Car Dealership and Owner Receive 4-month Suspension

Jan 24


Friday, January 24, 2020  RssIcon

Press Release Icon

Falsifying documents and failing to disclose significant accident histories of vehicles sold has resulted in a Newmarket car dealer having his licence suspended for 120 days. 

Ontario’s Vehicle Sales Regulator, OMVIC, issued a Proposal to Revoke the registration of Premium Cars Wholesale Ltd., 17065 Yonge St., Newmarket, after receiving serious complaints from numerous consumers and one dealer. Premium appealed the proposal to the Licence Appeal Tribunal, LAT, which, after a ten-day hearing, ordered the suspension. 

“In seven separate vehicle sales the Tribunal found the dealer failed to disclose on bills of sale previous accident damage in excess of $3,000 and structural damage repairs,” explained John Carmichael, OMVIC CEO and Interim Registrar. “Additionally, Premium’s staff created a bill of sale to which a warranty charge and finance fee were added without the customer’s knowledge or consent and they failed to disclose accident damage on a bill of sale and then altered the bill of sale to make it appear disclosure had been made. “This behaviour is beyond the pale. Ontario’s consumers have every right to expect truth and transparency from registered dealers. That was sadly lacking in this case and that is why we tried to revoke the dealer’s licence.”

In reaching its decision the Tribunal also ordered the suspensions of Hussein Shahnematollah-Yazde (aka Shane Shah), Premium’s owner, operator, officer and director, for 120 days; and, Daniel (Danny) Amirjani, salesperson, for 90 days.

According to Stephen Scharbach, the Tribunal chairperson, “Shah was the person who had the position and power to set standards for the conduct of Premium’s business and ensure regulatory standards were met. Clearly those standards were not met…Mr. Shah allowed Premium to operate with a lack of integrity and in contravention of the Regulations.”  

As a result of the suspensions, Premium Cars Wholesale Ltd. and Shane Shah, may not legally buy, sell, lease or consign motor vehicles until May 12, 2020. Danny Amirjani may not trade in motor vehicles until April 19, 2020. Consumers are warned not to buy or lease motor vehicles from, or sell or consign motor vehicles to, Premium Cars Wholesale Ltd., Shah, or Amirjani, while their registrations are suspended. Consumers who trade with an unregistered business or individual may not be protected by the Motor Vehicle Dealers Compensation Fund. 

Consumers with questions or concerns about dealings with Premium Cars Wholesale Ltd. are asked to contact OMVIC’s Complaints and Inquiries Team at 1-800-943-6002x3942.

To read the LAT decision, click here. The dealer has appealed this order.

About OMVIC

As the regulator of motor vehicle sales in Ontario, OMVIC’s mandate is to maintain a fair and informed marketplace by protecting the rights of consumers, enhancing industry professionalism and ensuring fair, honest and open competition for registered motor vehicle dealers. Visit omvic.ca to learn more about your car-buying rights as well as additional tips for buying a car in Ontario. For car buying tips, check out the OMVIC Academy. You can view other resources such as multilingual videos and download the OMVIC Car-buying Guide.


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