The owner of a now-defunct auto consigning company is facing over 160 charges following a fraud investigation.
Between July 2011 and August 2014, 94 people brought 116 vehicles to TREADZ Auto Group to sell their vehicles on consignment.
They paid a 300 dollar consignment fee and were to be paid within 10 business days of the sale of the vehicles. But 78 of those vehicles were allegedly sold to unsuspecting buyers, without compensation for the original owner.
The losses from these vehicles are estimated at approximately $1.8 million.
Between October 2013 and August 2014 TREADZ is also alleged to have re-registered 62 vehicles in the company’s name by using fraudulent ownership documents. The company then used 38 of these vehicles as collateral to aquire a loan from a credit company for $484,000, which was allegedly never repaid.
TREADZ then sold some of these vehicles to unsuspecting third parties.
The credit company was able to recover 27 of these vehicles under the Fair Trading Act, however, rather than leaving citizens at a loss, the company accepted the financial loss and returned the vehicles back to the owners.
Total losses by vehicle owners and a credit company estimated at over $2.2 million .
47 year old Sean Patrick O’Brien of Calgary faces fraud, theft, and counterfeiting charges.
He will appear in court on July 15th.