Unlicensed Car Seller Sentenced to Jail Time Following OMVIC Investigation

Hamilton, ON – March 25, 2025 – Following an investigation by the Ontario Motor Vehicle Industry Council (OMVIC), a Hamilton man has been sentenced to 30 days in jail for illegally selling a vehicle and engaging in unfair business practices under the Consumer Protection Act (CPA). This represents one of the most severe sentences handed down in a Provincial Offences Act (POA) case involving an unlicensed vehicle seller.

On November 26, 2024, Stephen William Lungaro was found guilty of three charges related to the illegal sale of a 2014 GMC Sierra to a consumer in December 2021. The court determined that Lungaro:

• Sold the vehicle without being registered as a dealer, violating the Motor Vehicle Dealers Act (MVDA).
• Misrepresented the vehicle’s true ownership history.
• Provided misleading information about the vehicle’s mileage.
• Failed to disclose that the vehicle had a damaged transmission.

Following a trial held in absentia on October 25, 2024, which included testimony from an OMVIC investigator, the consumer purchaser, and the vehicle’s previous owner, Lungaro was convicted of:

• One count under Section 4(1)(a) of the MVDA for acting as a dealer without a license.
• Two counts under Sections 14(1) and 17(1) of the CPA for engaging in unfair business practices.

At sentencing on March 10, 2025, the court imposed a 30-day jail term—10 days for each charge, to be served consecutively and intermittently—along with two years of probation and $5,500 in restitution to the consumer. The court did not impose additional fines, citing incarceration as an adequate deterrent.

Lungaro’s prior convictions for unlicensed vehicle sales in June 2019 and April 2023 were considered in sentencing.

“This case underscores OMVIC’s commitment to enforcing Ontario’s vehicle sales laws and protecting consumers from deception and financial loss,” said Jeff Donnelly, OMVIC’s Chief Consumer Protection Officer. “Purchasing from unlicensed sellers comes with significant risks, and we urge consumers to verify a dealer’s registration before buying a vehicle.”

Consumers can confirm whether a dealer is registered by visiting OMVIC’s website.

Why Choose an OMVIC-Registered Dealer?
OMVIC reminds consumers of the importance of purchasing from registered dealers, which ensures they are protected under Ontario law. Private vehicle sales do not qualify for coverage under the Motor Vehicle Dealers Compensation Fund.

About OMVIC
OMVIC (Ontario Motor Vehicle Industry Council) is a government delegated authority administering and enforcing laws that motor vehicle dealers and salespeople must follow. We protect the public interest by protecting and raising awareness of consumer rights and enhancing industry professionalism for registered motor vehicle dealers and salespeople.

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