Investigation puts the brakes on Edmonton car dealer

The watchdog for Alberta's motor vehicle industry is warning consumers against doing business with an Edmonton used car dealership.

The Alberta Motor Vehicle Industry Council says Miks Motors may still be selling cars and trucks, even after the company's business licence was pulled in July.

The council is now going to the courts in an attempt to have the company shut down for good.

"Now we're seeking a court order to enforce this," said council communications manager Laura Lowe during an interview on CBC's radio show Edmonton AM.

Lowe said most businesses comply with director's orders without going to court. "This is the first time we've had to seek a court order, at least in recent history."

The council began their investigation of Miks in May of 2014 after receiving a complaint from another local dealership.  

Miks was allegedly advertising stock that it didn't own, and was creating ads with images poached from its competitors.

"If you advertise a vehicle, you must have the right to sell it, you have to have it on your lot, and it's got to be available for sale at the time of the ad," said Lowe, adding what Miks was doing was "not normal practice."

The council also alleges that Miks advertising failed to include legally required details such as the name of the business, mileage information and the cash price.

An order was issued calling on Miks to remove the offending ads, but the investigation continued through 2015 and more questionable business practices were brought to light. One salesman was allegedly operating without a licence and the owner was allegedly using fraudulent bills of sale, according to the council.

Dennis Feldman of Miks Motors denies the allegations.

"The company has not yet had its day in court to dispute AMVIC's statements," he said in a written statement to CBC News.