Mississauga Car Dealership Suspended Due to Serious Allegations

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Published September 27, 2018 at 5:51 pm

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A Mississauga dealership has been barred from selling, leasing and buying vehicles due to several serious allegations.

The Ontario Motor Vehicle Industry Council (OMVIC), the province’s vehicle sales regulator, recently announced that KK Motors (located at 6295 Mississauga Rd.) has been suspended following allegations of forgery, odometer tampering, fraudulent vehicle transfers and illegal sales.

Kajendran Kasippillai, KK’s sole officer and director, has also been suspended.

OMVIC says the suspension forbids Kasippillai and Kk from selling, leasing, buying or consigning vehicles at this time.

OMVIC alleges the dealer purchased insurance write-offs from salvage auctions.

It says these vehicles were repaired and sold to consumers, often not by KK Motors directly, but rather by unregistered businesses or individuals working for, or with, the dealer.

The allegations have not yet been proven.

“OMVIC believes that in order to distance themselves from these vehicles, KK Motors Canada Inc. 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, ” says John Carmichael, OMVIC CEO and Interim Registrar.

“Most purchasers didn’t know about KK Motors; they thought they were buying the vehicles privately.”

OMVIC says that of the 13 vehicles it investigated, six appeared to have rolled-back odometers.

The organization says a 2007 Honda Odyssey was sold in June by one of KK Motors’ associated sellers with an odometer reading of 141,411 kms. It alleges that, 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.,” says Carmichael.

An investigation of the unregistered businesses and individuals who actually sold the vehicles is ongoing.

OMVIC says the dealership has been investigated before.

OMVIC says that 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.

The organization also says that 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.

According to Kasippillai’s LinkedIn page, he’s been operating KK Motors since 2011.

OMVIC says it only issues an immediate suspension order when the regulator believes a dealer’s conduct may place the car-buying public at risk.

A dealer may appeal an Immediate Suspension Order and receive a hearing within 15 days before the Licence Appeal Tribunal (LAT).

OMVIC is advising KK customers to have their vehicles inspected by independent mechanics.

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