By CRM staff
Toronto, Ontario -- September 26, 2018 -- Citing allegations of fraudulent and illegal activity based on the sale of written-off vehicles to unwitting consumers, the Ontario Motor Vehicle Industry Council (OMVIC) has issued a warning about the Missisagua-based KK Motors.
With KK Motors, OMVIC found that the dealer purchased insurance write-offs from salvage auctions. These vehicles were repaired and sold to consumers, often not by KK Motors directly, but rather by unregistered businesses or individuals working for the dealer. There is no suggestion that the repairers were aware of the alleged crimes.
“OMVIC believes that in order to distance themselves from these vehicles, KK Motors Canada forged documents and fraudulently transferred these vehicles into the names of past customers, prior to making the vehicles available for sale by the unregistered businesses and individuals, ” John Carmichael, OMVIC CEO and interim registrar stated. “Most purchasers didn’t know about KK Motors; they thought they were buying the vehicles privately.”
Of the 13 vehicles OMVIC investigated, six appeared to have rolled-back odometers. One, a 2007 Honda Odyssey was sold in June by one of KK Motors’ associated sellers with an odometer reading of 141,411 kms; four months earlier the mileage for the Odyssey was reported as 335,230 kms.
“OMVIC is alleging the fraudulent manipulation of odometers was done by, or on behalf of, KK Motors Inc.,” explained Carmichael.
An investigation of the unregistered businesses and individuals who actually sold the vehicles is ongoing. As a result the sole officer and director of the dealership, Kajendran Kasippillai may not legally sell, lease buy or consign vehicles. This isn’t the first strike for Kasippillai as he has a previous history with similar activity. In 2012 the dealer was found in breach of the Motor Vehicle Dealers Act and fined $1,500 for advertising a vehicle without disclosing in the ad that it had been placed by a registered dealer. Additionally, the dealer was found to be in breach of OMVIC’s Code of Ethics and fined $5,000 in 2014 for failing to properly disclose material facts related to the past use, history and condition of vehicles it sold, including significant accident repair histories.
Auto repairers who perform extensive repairs for dealerships are not guilty of any crime, unless they deliberately perform operations designed to falsify vehicle data--like roling back an odometer. They could face charges should evidence suggest that they had been aware that vehicles were being sold under false pretenses. Any repair facility tasked with performing suspicious procedures can protect themselves by reporting their concerns to OMVIC.
Another dealership, Marcel Motors in Ottawa, has had its operations temporarily shut down for another series of alleged infractions.