A former car dealer has been jailed after it was revealed he was committing fraud by selling cars without a license while owing clients more than $1 million.
Mathew David Hale faced the Downing Centre Local Court in Sydney and pleaded guilty to 12 counts of fraud, three counts of larceny and one count of trading without a motor vehicle trader’s licence.
Hale was the director of Gasoline Machine – trading as Gasoline Motor Co and it was revealed to the court that Fair Trading had received 17 complaints about Hales business practices in 2016 alone.
Mathew David Hale faced the Downing Centre Local Court (pictured) and pleaded guilty to 12 counts of fraud, three counts of larceny and one count of trading without a motor vehicle trader’s licence
The number of complaints in a short period of time prompted Fair Trading to launch an investigation in partnership with NSW Police, The Sydney Morning Herald reported.
Minister for Better Regulation Matt Kean said it was this investigation which uncovered the scope of Hale’s fraud.
‘A subsequent investigation uncovered more than $1,240,000 was owed to [Hale’s] customers, largely from the non-payment of consignment deals after he had sold luxury motor vehicles on their behalf,’ he said.
Mr Kean said he welcomed the verdict and hopes it can act as a deterrent to those who are involved or looking to get involved in similar business practices.
Television personality Larry Emdur (pictured left) was one of the clients caught out in Hales fraud when he tried to sell his Audi for $25,000
Television personality Larry Emdur was one of the clients caught out in Hales fraud when he tried to sell his Audi for $25,000.
However the car was sold and Mr Emdur was never made aware.
‘It was sold without my knowledge or permission. I never knew it was sold … and now it appears I won’t be seeing a cent for it,’ he said.
Along with Mr Emdur’s Audi, a number of other luxury cars were sold in the same way and made up almost $600,000 worth of unpaid consignment deals.
‘It was sold without my knowledge or permission. I never knew it was sold … and now it appears I won’t be seeing a cent for it,’ Mr Emdur said (stock image)
A consignment deal is an agreement ‘between a consignee and consignor for the storage, transfer, sale or resale and use of the commodity’.
Hale was sentenced to three years jail with a 20 month non parole period and will also be required to pay $748,626 in compensation to his affected consumers.
He is also required to pay another $367,237 to the Motor Vehicle Compensation Fund.