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Auckland company and its director fined $250,000

Media release

2 September 2014

Auckland company and its director fined $250,000 for illegally selling vehicles

Auckland company Awan Boueki Pacific Limited and its 55 year old director have been fined a total of $250,000 for selling 69 vehicles in a year, without being registered as a motor vehicle trader.

Under the Motor Vehicles Sales Act 2003, individuals can legally sell six vehicles in a 12 month period without being registered as a Motor Vehicle Trader.

In sentencing at the Manukau District Court yesterday, Judge Winter fined Awan Boueki Pacific Ltd $200,000 and its director Bakhtawar Singh $50,000 and put this prosecution in the category of ‘most serious of cases’, superseding the previous record penalty imposed to a Waiheke Island man in July 2014, who was fined $30,000.

Manager of the Registries Integrity and Enforcement Team at the Ministry of Business, Innovation and Employment, Karla Flood, says the Judge referred to the aggravating features of the offending including the persistence of the offending, the premeditation and the fact it was well planned and deceptive.

“This sentencing should send a clear message that enforcement action by the Registrar of Motor Vehicle Traders will be taken against any individual or company who actively flout the rules and unregistered traders can expect to feel the full weight of the law.”

Karla Flood says when consumers purchase vehicles from unregistered traders, such as Awan Boueki Pacific Ltd, they have less protection when things go wrong.

Yesterday’s sentencing follows a number of other prosecutions in recent months.

DateDefendantCourtPenalty imposed
15 May 201435 year old manManukau District CourtFined $4500 plus court costs.
16 May 201454 year old manLower Hutt District CourtFined $3,375 plus $500 solicitors fees.
18 June 201444 year old manHastings District CourtFined $7,500 plus court costs and $500 solicitors fees.

2 July 201437 year old manNew Plymouth District Court350 hours community service.

7 August 201425 year old manNew Plymouth District CourtFined $4,500 plus $500 solicitors fees.
28 August 201427 year old manPapakura District CourtFined $6,000 plus court costs and $500 solicitors fees.

The Registrar of Motor Vehicle Traders has investigated 228 unregistered motor vehicle traders since 1 July 2013. Of those, 202 investigations have been finalised, 9 remain under investigation with the view of achieving compliance and 17 cases are currently before the courts.

Of the 202 completed investigations:
122 were closed as compliance was achieved;
74 were closed as no offence was identified;
6 traders were issued with written warnings and are being monitored;

ENDS

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