LAT extends Montero Auto suspension pending NOP hearing over deposit and disclosure complaints

On March 20, 2026, the Ontario Licence Appeal Tribunal extended an Immediate Temporary Suspension Order against 7631901 Canada Corp. o/a Montero Auto Center and its director and salesperson Marco Sinagoga, pending the full hearing of OMVIC’s Notice of Proposal to revoke their registrations. The decision is interim: it does not decide the NOP itself. The Tribunal adjourned the main hearing and a case conference will be scheduled. The decision is published on CanLII as 2026 CanLII 26819 (ON LAT).

What an ITSO extension is, and what it isn’t

OMVIC issued the NOP and an Immediate Temporary Suspension Order under s. 9 and s. 10 of the MVDA on February 24, 2026. Under s. 10(3), an ITSO expires 15 days after the Tribunal receives a written hearing request, unless the Tribunal extends it. The only thing the Tribunal decides at the ITSO stage is whether the suspension stays in force until the NOP hearing concludes. Final findings about the appellants’ conduct, and any decision to revoke or attach conditions, come later under s. 9(5).

At paragraph [5] the Vice-Chair specifically noted that “the evidence presented for the purposes of the extension of the ITSO is not automatically evidence for the purposes of the hearing of the NOP appeal”, and that the factual determinations at the ITSO hearing are not binding on the adjudicator who eventually conducts the full appeal. Read this post in that light: the underlying allegations are unproven at this stage.

What OMVIC alleges

OMVIC’s case for keeping the suspension in place rested on three threads.

A 2018 Ram with engine trouble and a price discrepancy

A consumer in Sault Ste Marie purchased a 2018 Ram. The advertisement listed $19,888 plus tax. The Bill of Sale showed $21,888 plus a $1,999 charge for rustproofing and undercoating that the consumer’s mother said had not been agreed to. The vehicle was delivered at 11pm on November 15, 2024. Within a day the heater was inadequate; by January 2025 the vehicle was at Superior Chrysler in Sault Ste Marie, where the inspection found coolant entering cylinder 4 and a head gasket failure. A used engine was eventually installed in March 2025. The consumer testified she paid roughly $10,159 out of pocket after $4,999 from a warranty and $2,500 from the dealer.

OMVIC alleged this engaged section 42 (paragraph 13) of O. Reg. 333/08, which requires a registered dealer to disclose to the customer in writing if the motor vehicle requires repair to the engine, transmission, power train or electrical system. The Vice-Chair, however, placed little weight on the consumer’s testimony that the agreed price was $19,888, given that the Bill of Sale signed by the buyer showed $21,888 (paragraph [41]). Whether engine repairs were known and concealed at the time of sale is a question the NOP hearing will need to answer.

A $15,000 Audi deposit that was not held in trust

On October 16, 2025, a different consumer agreed to buy a 2023 Audi Q8 from the appellants and paid a $15,000 deposit. CIBC financing was arranged. The consumer made his first payment on November 15 even though the vehicle had not been delivered. When delivery slipped past the agreed window, the consumer cancelled.

A refund cheque dated December 4, 2025 was returned with payment stopped. A second cheque was drawn on the personal account of the appellant’s wife. CIBC paid out the consumer’s loan in full on December 18, 2025; the appellant testified that the dealership ultimately funded the payout. The consumer testified that CIBC subsequently red-flagged him because a loan had been opened and closed within three months.

Section 58(4) of O. Reg. 333/08 requires a registered dealer that receives a deposit greater than $10,000 to hold the entire deposit in trust until the purchase is concluded. At paragraph [28] of the decision, the Vice-Chair recorded that Marco Sinagoga “admitted that he did not have a trust account at the time of this transaction”.

Slow responses to the Registrar

OMVIC’s complaints manager wrote to the appellant on January 26, 2026 with a deadline of January 30 for information about the Audi transaction. No response by the deadline. A follow-up on February 2 produced a partial response on February 5; the balance of records arrived on March 10. The Vice-Chair characterised the failure to respond fully and on time as undermining the purpose of the Act and the regulations (paragraph [45]).

Why the ITSO stays in force

At paragraph [50] the Vice-Chair found that the alleged breaches of O. Reg. 333/08 and the unresponsiveness to the Registrar provide a reasonable basis for the NOP and that the public interest requires the suspension to remain in force pending the outcome of the hearing.

The appellants had asked, alternatively, for the ITSO to be set aside on conditions: increase the line of credit, open a trust account, take title before agreeing to sell, take responsibility for repairs for 90 days. At paragraph [53] the Vice-Chair found that s. 10(3) does not give the Tribunal authority to attach conditions at the ITSO stage. That power exists at the NOP hearing under s. 9(5), not earlier. The ITSO was extended pursuant to s. 10(3) until the conclusion of the NOP hearing, which has been adjourned.

What to learn

• A deposit over $10,000 must sit in a trust account. Section 58(4) of O. Reg. 333/08 leaves no room here. The protection runs to the consumer until the purchase concludes; commingling the deposit with the dealership’s operating funds is the breach the Tribunal flagged.
• Don’t agree to sell a vehicle you don’t own. The appellant himself said in hindsight he wished he had taken title before signing the Audi deal. Selling something not yet in your possession compounds delivery risk and turns a refund into a trust-account problem.
• Respond to the Registrar promptly and in full. Late and partial answers can become an independent ground for adverse regulatory action, separate from the conduct under investigation.

The full NOP hearing will determine whether the registrations are revoked, modified or kept under conditions. Watch the CanLII record for the eventual decision.