Toronto police link ServiceOntario staff to fake VIN scheme as Ontario proposes penalties for auto fraud
The Ontario government has proposed new penalties for fraudulent vehicle identification numbers (VINs), including fines of up to $100,000 and six months in jail for those convicted. This announcement comes on the heels of a Toronto police investigation that has led to the laying of hundreds of charges related to fraudulent VINs and implicates some ServiceOntario employees.
VIN fraud involves replacing the VIN of a stolen vehicle before reselling it, a practice that can lead to carjackings, late-night robberies, and chaos in communities. The proposed legislation would create a new offence under the Highway Traffic Act for knowingly providing a false VIN when applying for a vehicle permit.
Transport Minister Prabmeet Sakaria emphasized the impact of these crimes, stating that they may seem victimless but are contributing to criminal activities across the province. Penalties for VIN fraud could also include driver’s license or vehicle permit suspension for up to one year.
When a vehicle is stolen, the VIN is typically flagged across North America to prevent its sale. However, criminals are finding ways to circumvent these measures by replacing the VIN plate with one from a similar vehicle that has been legally exported, totalled, or registered in another jurisdiction.
In a separate press conference, Toronto police announced the recovery of over 360 stolen vehicles and the arrest of 59 individuals in an investigation that began in July. The accused individuals, ranging in age from 18 to 69, face numerous charges related to forged documents and possession of stolen property.
The police investigation also uncovered a scheme involving ServiceOntario employees who were registering fraudulent VINs to sell stolen vehicles at a discounted price to unsuspecting buyers. These employees used fake documents provided by the accused individuals to make the VINs appear legitimate and then registered them with real Ontario license plates.
While no ServiceOntario employees have been arrested yet, police expect more arrests to follow as they continue to work with the Ministry of Transportation on the ongoing investigation. The investigation also revealed the presence of “chop shops” in the city, where stolen vehicles are dismantled and shipped overseas.
Buyers of used vehicles are advised to obtain a vehicle history document from the Ministry of Transportation and to carefully inspect for any discrepancies, such as inconsistencies in the vehicle’s color. Toronto police estimate that the recovered vehicles from the investigation have a total value of $14 million.
The investigation involved collaboration with various law enforcement agencies, including the Canada Border Services Agency, Ontario Provincial Police, and police from York, Durham, and Montreal. Over 100 falsely registered plates and VINs have been flagged on police investigative databases as a result of the investigation.
