Issue Date:  -  Tuesday, 12 September 2000

Car yard manager disqualified over finance scam

A manager of a Midland car yard has had his licence disqualified for 12 months for fraudulent conduct and dishonesty in connection with financed motor vehicle transactions.

The Motor Vehicle Dealers Licensing Board found today that Mayer (Mike) Benaim, (50) of Bluejay Gardens, Ballajura, yard manager for Foothills 4 x 4, put false statements on finance applications made to Esanda Finance about the amount of cash in buyers' accounts.

This information forms part of Esanda's assessment of a prospective finance customer's capacity to service a motor vehicle loan.

In one particular transaction it was falsely stated that the customer already owned a $5000 four-wheel drive vehicle, when in fact she did not.

The disqualification arose from three events between August and December 1997.

The allegations came to light when Mr Benaim applied for a dealer's licence earlier this year. The Board found that Mr Benaim knew in all cases that the customers did not have savings to support their applications for finance.

At the end of the 12-month period of disqualification, Mr Benaim will have to reapply to the Board to re-enter the industry.

Commissioner for Fair Trading Patrick Walker said the Ministry viewed misrepresentation of finance applications extremely seriously.

"There is no room in the motor vehicle sales industry for people who act in this way and the Ministry will do what it can to have them removed," Mr Walker said.

"This type of misrepresentation causes severe hardship to consumers. It leads finance companies to believe the purchaser is in a sound financial position. In actual fact it provides finance to people who can least afford to take on more debt. The end result is that the consumer suffers not only the loss of her or his vehicle but remains liable to the finance company for a large debt".

Mr Walker said Mr Benaim knew in all cases that the customers did not have savings to support their applications for finance.

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Stephanie Slanzi
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