$8k trading fine ‘consistent’

A fine of $8,000 handed down to a man who illegally sold 44 vehicles in a 12-month period has been described by the authorities as “consistent” with similar cases.

Kahn David Ratcliffe was sentenced in December following an investigation by the Ministry of Business, Innovation and Employment (MBIE) for breaching the Motor Vehicle Sales Act (MVSA).

The 45-year-old sold 44 vehicles during a 12-month period, which was more than seven times the limit for those who are unregistered. 

Ratcliffe’s conviction in Taupo District Court came after he was charged with one count of dealing while being unregistered. 

The maximum fine under the MVSA for such offending is $50,000 for an individual and $200,000 for a company. 

The amount Ratcliffe was fined surprised some people in the automotive industry, who felt it could have been more based on the level of offending that occurred. 

On that basis, Autofile Online contacted MBIE for further comment and explanation on the case.

Jyoti Issar, manager of investigations (north), says: “Sentences are handed down by the court and the sentence for Ratcliffe was consistent with previous judgements under the MVSA for this type of offending.

“Prior to making a judgement, a judge takes into account multiple factors including the seriousness of the offending, the personal circumstances of the defendant and consistency with sentences for similar offending.”

Issar emphasises that Ratcliffe’s $8,000 fine was based on the one charge of unregistered motor-vehicle trading. 

The judge, in this instance, considered a $12,000 fine as an appropriate starting point for his offending. Ratcliffe was then given a 25 per cent discount for his early guilty plea and a further discount of $1,000 for his personal circumstances. 

All this resulted in the end fine of $8,000. When combined, solicitors’ and court costs of $530 were also ordered against Ratcliffe.

“Selling more than six cars in a specified 12-month period is an offence under section 95 of the MVSA,” adds Issar. 

“In this instance, Ratcliffe sold 44 vehicles in the specified period of 12 months and was charged with one count of breaching the MVSA. ‘Specified period’ means any 12 consecutive months. Therefore, the one count necessarily includes all vehicles sold by Ratcliffe within that timeframe.”

Following the sentencing in December, Duncan Connor, registrar of motor-vehicle traders, stressed consumers have no protection when purchasing from unregistered traders and could face significant financial losses in the event of issues with their purchases. 

He also warned Facebook Marketplace is a common platform for unregistered dealers to ply their trade.

“Consumers should take precautions when purchasing vehicles online,” added Connor. “This may include organising a pre-purchase check and inspection to identify any mechanical issues or money owing.”

Car dealers and consumers can verify whether the person they are buying from is registered by checking online at www.motortraders.govt.nz.