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Court docs claim vehicle fraud involving more than 100 vehicles
Published Wednesday, May 16, 2018 10:00AM MDT
Last Updated Thursday, May 17, 2018 6:26PM MDT
An Edmonton car dealership has taken legal action against an Edmonton man, and a number of companies he is involved with, after more than 33 vehicles were taken from the dealership’s lot earlier this year.
A Statement of Claim obtained by CTV News outlines the lawsuit, filed by AutoCanada Capital Motors GP Inc. against a handful of numbered companies, individuals involved with those companies, Alberta Treasury Branches and Automotive Finance Canada Inc.
The suit outlines allegations 113 vehicles were fraudulently acquired using forged documents – they had been purchased by Capital Dodge for more than $5.5 million, and the company had planned to sell them at a profit.
The documents claim Adam Shtay, who is listed as a director of two of the named companies: Canuck Auto Inc. and Flawless Integrity Inc., removed 33 of the vehicles (valued at $1.6 million) from the Capital Dodge lot between April 12 and 24.
It's alleged Shtay said he’d taken the vehicles with the help of a locksmith – Canuck and Flawless claimed the 33 vehicles were purchased from a company called GRR Leasing.
According to the court documents, Capital Dodge never sold the vehicles, has no record of receiving payment for the vehicles and the whereabouts of those vehicles is unknown to the company.
It’s alleged a Calvin Mirbach, who had a desk in the Capital Dodge dealership to operate his wholesale business, was involved in a scheme involving New Vehicle Information Statements (NVIS), and that he used the scheme to secure registrations for the vehicles.
It’s believed Mirbach sold the vehicles for a profit, with help from the director of GRR Leasing, Gregory Rasmussen, using forged documents.
The documents also outline ownership disputes concerning another 81 vehicles that were also purchased by Capital Dodge – they were purchased for nearly $3.9 million from FCA Canada.
A total of 66 of those vehicles are still in possession of Capital Dodge, according to the documents, but 14 were sold by Capital Dodge before the dealership was aware ownership of those vehicles was in dispute.
For those vehicles, it’s believed Mirbach used the same NVIS scheme – saying the original forms for the vehicles in question had been misplaced and needed to be replaced – to secure documents for the vehicles before selling them to GRR Leasing.
The lawsuit seeks $500,000 in damages, plus more if the vehicles are not accounted for, and declarations that Capital Dodge owns the vehicles in question, and that the companies named in the lawsuit do not.
CTV News reached out to Alberta Motor Vehicle Industry Council (AMVIC) for comment on this lawsuit, a spokesperson said the council had recently been made aware of the file, and officials were communicating with Edmonton Police Service (EPS) about it.
At last word, AMVIC had not yet received a consumer complaint on the issue.
The AMVIC spokesperson suggested consumers head to the organization’s website, or to call 1-877-979-8100 if they have been impacted.
Defendants in civil suit over alleged vehicle fraud respond
CTV News reached out to the defendants in the lawsuit, and three of them have responded.
Greg Rasmussen, with GRR Leasing, said in a statement his company was aware of the lawsuit “against GRR Leasing and numerous other parties by Capital Dodge.”
“The allegations against GRR are baseless and our lawyers are in the process of preparing a response and counter-suit. We will have no further comment at this time while the matter is before the courts other than to say our transactions with Capital and its employees and representatives were conducted properly and above board.”
Adam Shtay, Director of Canuck Auto Inc. and Flawless Integrity Inc., spoke to CTV News.
“We’re a victim in this, we didn’t sign up to be colluded in this,” Shtay said.
“I’ve approached AutoCanada first, that’s how they came about this, I demanded my vehicles.”
CTV News has also reached out to Calvin Mirbach, he told CTV News he has no comment and will pass our information on to his lawyer.
The allegations have not yet been proven in court.
With files from David Ewasuk