Treadz Auto complaints greater than police realized

Calgary police say there are dozens of alleged victims in theirinvestigation into Treadz Auto.

CBC News first reported in August that the car company was being accused of selling vehicles and not giving the money it owed to theowners of the vehicles.

• Treadz Auto car consignment being taken to small claims court
• Treadz probe sparks Wildrose call for consumer protection
• Treadz Auto's provincial business licence cancelled by regulator
• Treadz Auto accreditation suspended by Better Business Bureau

Police now say there are 155 vehicles that have been brought forward to them for investigation and about 120 victims, some of whom had multiple vehicles that they either purchased from or sold to the auto company.

Investigators say this case is very complex and likely won't be solved soon.

"We really do feel for the victims of this, it's a very difficult situation," said Sgt. Kristie Verheul with the economic crimes unit. "Economic crime takes a long time to investigate and it isn't always black and white. It does border on civil crime often."

Treadz Auto takes care of the showings and sales of vehicles for a consignment fee andconsignment companies have 14 days to pay owners for their vehiclesunder Alberta law.

Clients say company never paid them

One mantook the company to small claims court in an attempt to get the money he says they owed him after selling his vehicle but came up empty afterthe company claimed bankruptcy.

Romeo Orantes Gomezsays the company sought him out after seeing an ad he had placed for his Camaro in Auto Trader.

He says the company offered to sell the vehicle for himbuthe discovered theyhad sold the car without telling him when he went back three months later.

OrantesGomez said the company gave him cheques for the amount owedbut the cheques bounced, sothat is when he went to police.

JoannaToller, another vehicle owner, says she sold her 2005 Audi to Treadz Auto. The companythen sold the car for her in June for $12,000.

However, Tollertold CBC News in August she had not seen any of the money despite promises from the company that it was forthcoming.

Stronger regulations needed?

A CBC News investigation prompted calls from the Wildrose Party for stronger consumer protection regulations in Alberta.

Wildrose Service Alberta critic Bruce Rowe said the province may needto consider requiring higher bonds from consignment companies to ensure greater protection for consumers.

The Alberta Motor Vehicle Industry Council (AMVIC) has a compensation fund capped at $300,000 per business.

However, that won't be enough to cover everyone and some say that compensation wouldn't even begin to cover what they should have received for the sale of theirvehicle.

"I'm hoping that there will be some resolution, that somehow, some way, I'm going to get my money out of this and not just a portion of it," said Andrea Scherle, who is says Treadz Auto sold her Dodge Ram in March but never gave her the money. "You know, $25,000 doesn't cover my [$45,000] loss. It covers half of it."

AMVICsays it has no plans to increase the cap on businesses in its compensation fund.

The regulator posted a statement on its website saying it had located some of the vehicles and is working with creditors.

However, those affected are being advised to keep all paperwork and consider seeking legal advice.

Anyone with concerns regarding Treadz Auto are being urged by AMVIC tocontact their consumer services team at 1-877-979-8100 ext. 2002.

Customers should also contact the Calgary Police Service's non-emergency line at 403-266-1234 or go to any Calgary police office and quote file #14286151.