Illegal trader fined $5.5k
An unregistered car dealer has been fined after he was convicted of breaching the Motor Vehicle Sales Act (MVSA).
Michael Costello, of Manurewa, south Auckland, was convicted after the Ministry of Business, Innovation and Employment (MBIE) charged him with one count of trading vehicles while being unregistered.
The investigation found that the 40-year-old had 23 vehicles registered in his name between October 30, 2017, and October 29, 2018. They ranged from a Holden Commodore to a Suzuki motorcycle and were subsequently, and relatively quickly, transferred into the names of other people.
At a judge-alone trial earlier this year, Costello was found guilty of carrying on the business of motor-vehicle trading without being registered.
During the hearing, Costello claimed his driver licence was used to transfer vehicles without his knowledge or permission. The judge didn’t find this claim to be either credible or reliable.
He was sentenced at Manukau District Court to a reduced fine of $5,500 and ordered to pay $500 towards legal costs.
At sentencing last week, the judge agreed with the prosecutor’s submissions that the fine was in the $14,000 to $16,000 range. However, significant downwards adjustments were made to account for his personal circumstances.
Duncan Connor, registrar of motor-vehicle traders, says: “The MVSA has certain provisions to protect the public when they are purchasing vehicle, with greater protection offered to consumers when purchasing a car from a registered trader.
“Unregistered traders are prohibited from selling more than six vehicles in a 12-month period. In exceeding this limit, Costello broke the law.
“MBIE will not hesitate to investigate and prosecute those who deliberately breach the MVSA. I would strongly encourage anyone considering purchasing a car to check whether the person or company they are purchasing from is a registered motor-vehicle trader on the online register.”
The public register can be accessed at www.motortraders.govt.nz/. Under section 95 of the MVSA it is an offence to sell more than six vehicles in a 12-month period. Those found breaking the law can face fines of up to $50,000 for an individual or $200,000 for a company.
