Motor vehicle salesperson has registration revoked due to gambling issues, undischarged bankruptcy, and criminal charges
- Published On
- July 6, 2022
Toronto, ON, July 6, 2022 – In a written decision released on June 20th, the License Appeal Tribunal (LAT) directed OMVIC to carry out its proposal to refuse the registration of Mr. Kuldeep Kapoor, as a motor vehicle salesperson under the Motor Vehicle Dealers Act, 2002 (the Act).
Refusing Mr. Kuldeep Kapoor registration makes it illegal for him to trade in motor vehicles in Ontario. The LAT found revoking Mr. Kapoor’s registration was necessary to protect the public given his lack of candour and failure to take responsibility due to his gambling issues, undischarged bankruptcy, and criminal charges.
One of Mr. Kapoor’s first jobs was working in a bank as a Financial Services Manager. This role included reviewing and evaluating credit applications where he would underwrite loans up to $250,000. He then quickly became a licensed mortgage broker, where upwards of 40 creditors made Mr. Kapoor short-term loans with high rates of return. This all occurred between 2008-2016.
In 2015, Mr. Kapoor filed for bankruptcy, acknowledging the debt of around $1.5 million to 40 creditors. Days later, the appellant’s counsel sent a letter to creditors indicating that their loans carried a criminal rate of interest and did not comply with the Interest Act.
In 2017, Mr. Kapoor was charged with defrauding the public for over $5,000 contrary to section 380(1) of the Criminal Code. The trial did not proceed until December of 2020, and it was the Crown’s position that the appellant engaged in fraudulent means to induce the complainants to loan him money, while also gambling with the monies borrowed.
According to the defense, there was no hard evidence that he used the money for gambling and no evidence that he misrepresented the use of funds. On January 29, 2021, Mr. Kapoor was acquitted by a judge of the Ontario Superior Court of Justice, as they found no evidence of the above.
Mr. Kapoor testified that everyone was initially satisfied with the arrangement and loans were repaid with interest. As he struggled to repay these loans, he admitted that he had a sports gambling addiction in 2015; however, he emphasized that he never used funds “loaned for a stated purpose” to gamble. He indicated that he only used funds loaned to him by individuals for a “general purpose” to repay his gambling losses.
Mr. Kapoor described his behaviour as “stupid”,and began to explain the impact of his actions and the effect on his personal life. According to the appellant, since declaring bankruptcy he has worked hard to rebuild his life, seek counseling, and now has stable employment.
Mr. Kapoor began working with his current employer, West Motors, in July of 2016. Since that time, he has held various roles with this company. He does not sell vehicles, but rather assists with data analysis and marketing.
Furthermore, he initially applied for registration as a motor vehicle salesperson on October 7, 2016, when he was denied. A second application was submitted on May 31, 2021, when he was instructed to provide further details of the status of the bankruptcy.
The Deputy Registrar testified that it was concerning that, at the time of the second application, the bankruptcy remained undischarged and that Mr. Kapoor referred to it as ‘abandoned’. There was concern for lack of responsibility and governability on his end. With that said, the Registrar issued a Notice of Proposal to Refuse registration on September 27, 2021.
The Registrar proposed to refuse the registration on the following two grounds set out in s.6(1)(a) of the Act:
- Having regard to the appellant’s financial position or the financial position of an interested person in respect of the appellant, the appellant cannot reasonably be expected to be financially responsible in the conduct of business,
- The past conduct of the appellant or of an interested person in respect of the appellant’s affords reasonable grounds for belief that the appellant will not carry on business in accordance with law and with integrity and honesty.
Under these circumstances the grounds for refusal are factually intertwined. Mr. Kapoor’s prior conduct and testimony before the Tribunal provide reason to believe that he will not act in accordance with the law, with integrity and honesty, or reasonably be expected to be financially responsible in the conduct of business.
In summary, the tribunal concluded that Mr. Kapoor’s past conduct afforded reasonable grounds to believe he would not carry out business as a motor vehicle salesperson. The tribunal directed the Registrar to carry out its proposal to revoke Mr. Kapoor’s registration.
OMVIC (Ontario Motor Vehicle Industry Council) administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services.OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario’s 8,000 dealerships and 30,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions (or discipline proceedings) of industry misconduct and illegal sales (curbsiding).OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund