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Investigation continues into alleged collision ring


February 12, 2008   by Canadian Underwriter


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Toronto Police Service (TPS) and the Insurance Bureau of Canada are continuing a criminal investigation into the activities of a ring that allegedly staged vehicle collisions for the purpose of committing insurance fraud, according to a TPS release.
The allegations have not been proven in court.
The TPS alleged that in this scheme, wrecked vehicles, which had previously been involved in collisions, were purchased and then cosmetically repaired. Subsequent to that, they would be placed in the name of a third party, insured for a value far exceeding the actual worth of the vehicle, and then used in a staged collision with another vehicle.
Several individuals would claim to be injured as a result of the collision, although many of them were not actually in the vehicle during the collision, the TPS allege.
To date, seven collisions are being investigated, reportedly involving 39 drivers and passengers, two tow-truck operators, at least two repair facilities and an auto reseller, the TPS says.
From these seven collisions, the total loss to insurers exceeds Cdn$650,000, a TPS statement says.
Officers said they became suspicious due to evidence located at the scene of a collision in Scarborough in October. An investigation began; five individuals were arrested and two vehicles were seized. It is estimated that more than Cdn$200,000 in claims was saved from this one incident alone, the statement adds.
Information uncovered during the investigation led officers to this alleged crime ring, the TPS reports.


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