Best Buy Auto Group’s Mezin Hadad found to have breached dealers act

A self-described “tycoon” has been banned from holding a dealer’s licence in Queensland after threatening a customer, allegedly selling a stolen car to another dealer and multiple licence breaches, a tribunal has heard.

A self-described “tycoon” who claimed to be Australia’s biggest used car dealer has been permanently banned from holding a dealer’s licence in Queensland after threatening a customer, allegedly selling a stolen car to another dealership and multiple licence breaches, a tribunal has heard.

Best Buy Auto Group Pty Ltd and its sole director Mezin Hadad were referred to a tribunal for disciplinary proceedings after an investigation by Queensland’s Office of Fair Trading following a report from Queensland Police.

Mr Hadid and the company operated from Southport, Labrador, Carrara and Woodridge.

The tribunal heard Mr Hadad attended Audi Centre Gold Coast in August 11 2020 to purchase some vehicles and arranged to pick up a Mercedes Benz as a loan vehicle from the Audi Centre in South Brisbane.

On August 19 he was told to return the Mercedes or pay $32,000 for it that day.

However Mr Hadad had sold the Mercedes to Central Auto Auctions (CAA) at Eagle Farm a day earlier, the tribunal heard.

When CAA later did a security check they found the vehicle was listed as reported stolen, the tribunal heard.

Police seized the car leaving CAA, which is not accused of any wrongdoing, without a Mercedes to sell.

Mezin Hadad were referred to a tribunal for disciplinary proceedings after an investigation by Queensland’s Office of Fair Trading following a report from Queensland Police. Photo - iStock

The Queensland Civil And Administrative Tribunal’s member Robert King-Scott, who delivered his decision on the papers meaning no hearing was held, said the “facts establish a very strong case of theft following what appeared to be a premeditated plan by Mr Hadad and another (employee)”.

Mr Hadad did not take part in the tribunal proceeding however when Fair Trading previously put allegations regarding the Mercedes to him, he said it was false.

“This allegation was false and a brief was sent to my lawyer where all charges were dropped,” he said in an undated document after claiming he was too unwell to be interviewed.

“I am genuinely at a loss and can’t comment on something that I’m not aware of and I know the extremity of the allegations and having been a motor dealer for 26 years I am seeking assistance.”

The Department of Justice and Attorney-General, which brought the disciplinary proceedings against Mr Hadad and his company, told the tribunal the “police charge arising from this matter is yet to be finalised.”

The tribunal heard that in July 2020 a customer attended Best Buy Auto Group in Carrara, purchased a Ford Territory with a $4,500 deposit and drove it to Adelaide where it remains unable to be registered or sold as it is still encumbered to the respondents despite full payment having been made.

The tribunal heard Mr Hadad threatened the customer saying “I know people all over the place and I know where you live”.

In response to allegations regarding this customer Mr Hadad told Fair Trading the woman was still making payments to his bank account.

“I am shocked to see this as a complaint,” he said.

The tribunal heard one customer purchased a Holden Commodore with extended warranty through a third party organised by Mr Hadad.

She later went to make a warranty claim but this was denied because Best Buy Auto Group had ceased making warranty payments to the third party.

Mr Hadad failed to repair another vehicle, despite it being under warranty, after the customer was told the entire engine needed to be replaced, the tribunal heard.

In October 2020 Fair Trading inspectors attended Best Buy Auto Group and were directed to the employee in charge. Inspectors watched as the worker, having being informed they were onsite, quickly “decamped” from the premises in a car.

The tribunal heard the employee had never been the holder of a motor dealers’ licence.

In his correspondence to Fair Trading, where he claimed he was the biggest used car motor dealer in Australia, Mr Hadad said his divorce had taken a shocking toll.

“Mr Hadad stated that in a span of two years he literally went from a tycoon to a mental health patient … his whole life was in ruins,” the tribunal heard.

Tribunal Member King-Scott found on the balance of probabilities Mr Hadad and Best Buy Auto Group breached motor dealer’s legislation in nine disciplinary grounds by employing a person who did not hold registration to act as a car salesman, making false representations about the sale of goods, failing to ensure sale contracts existed, failing to give car buyers a statement of particulars, failing to carry out warranty repairs, failing to ensure each place of business had a licensed individual in charge, failing to promptly give receipts, acting unprofessionally and were not suitable to hold a licence

“Putting aside the deceit of Mr Hadad and others working for him, I am satisfied that if his actions and those employed by him were not motivated by dishonesty the actions were certainly unprofessional and incompetent,” Mr King-Scott said.

Mr Hadad and Best Buy Auto Group were ordered to pay $67,607 in compensation to customers including $30,500 to CAA and both were banned from holding a car dealer’s licence in Queensland indefinitely.

Mr Hadad was personally fined $10,000 and Best Buy Auto Group was fined $50,000.