Jewelry auctioneer demands apology

 

Lana Haight

The StarPhoenix


Saturday, October 27, 2007

 

An Ontario-based auctioneer who held a high-end jewelry sale in Saskatoon is demanding the provincial government apologize and pay him thousands of dollars after his company received bad publicity prompted by a government alert.

"Basically the suggestion to the buyer was to be careful, that some kind of fraudulent activity was going on," said auctioneer Jim Mirkalami, who works for Heritage Auctioneers Alberta Ltd.

On Oct. 21 at the Saskatoon Inn, Mirkalami set out to auction more than 200 pieces of "high value jewelry confiscated for non-payment." He says it cost him $12,000 to run the sale in Saskatoon and he wants compensation from the province and from a radio reporter who attended the auction.

"There was a lot of interest in diamonds, but we didn't sell as much as we sell in other places," said Mirkalami.

On Oct. 19, two days before the sale, the consumer protection branch of Saskatchewan Justice issued a buyer-beware alert.

The branch's deputy registrar, Larry Wilson, called The StarPhoenix to say consumers should be warned that Heritage Auctioneers Alberta Ltd. did not have a licence to hold the auction, nor had it posted a bond. He also said he told the company it would be contravening the province's auction regulations if it proceeded with the sale. Wilson said consumers would not be protected if they were dissatisfied with their purchases.

But on Friday, Mirkalami said he had complied with Saskatchewan law. He provided documents to The StarPhoenix supporting his position.

An application for an auction licence, with a handwritten licence number, is stamped as received by Saskatchewan Justice on Oct. 11. Mirkalami paid Saskatchewan Justice a $625 licence fee using a Visa card on Oct. 16, according to a credit card receipt. And Heritage Auctioneers Alberta Ltd. posted a $25,000 bond with a company in Edmonton on Sept. 24, naming the Saskatchewan government as the "obligee."

About 40 people attended the auction and few of the 220 items actually sold, says Mirkalami.

"It was a low turnout. I'm used to seeing 100-plus (people) in Saskatoon," he said, adding he has more than 15 years' experience as an auctioneer and has held many jewelry auctions in Saskatoon, under the company name of Bloomsbury and Butterfield.

Mirkalami, a certified appraiser, says any item appraised by him is guaranteed by the company.

On Friday, the registrar of Saskatchewan Justice's consumer protection branch, Al Dwyer, said the provincial election campaign prohibited him from commenting on Mirkalami's concerns, other than to say the case was being investigated.

"The public service, for the most part, cannot be dealing with the media and only on exceptional circumstances can that happen," said Dwyer, who defended the deputy registrar's decision to call The StarPhoenix a week earlier, also during the election campaign.

"That was a regulatory matter and we needed to get the message out to the public," he said. "That happened to be, from our perspective, an exceptional circumstance."

lhaight@sp.canwest.com

Source: http://www.canada.com/saskatoonstarphoenix/news/story.html?id=f5137754-7d3e-49d3-bc9e-1fc8c74bf4f7