Toronto towing firm charged with fraud after insurer investigation

The owner and operator of a Toronto towing firm is facing several fraud-related charges after an investigation was prompted by Aviva Canada.

Jainauth Sounauth, 53, of Kam’s Towing & Recovery has been charged with False Pretence, Forgery, Uttering a Forged Document and Fraud Under $5,000. He is scheduled to make his first court appearance in Toronto on Dec. 19, according to Aviva.

The charges relate to a collision in Toronto on June 17, involving a dump truck registered to a commercial client of Aviva and two other vehicles. The Ontario Provincial Police attended the scene and directed the drivers to a nearby Collision Reporting Centre, Aviva said.

“The collision damage claim made to Aviva Canada included an invoice for $4,250.00, presented by Kam’s Towing & Recovery, 50 Shaft Road, Toronto, Ontario,” the insurer said. “The invoice detailed costs for attendance of a heavy tow truck at the collision scene, clean-up of roadway debris and removal of the dump truck.”

Related: Towing firms propose changes to Ontario auto insurance fraud bill

Aviva then investigated the circumstances related to the towing services. “Following witness interviews and expert examination of the collision damage, it was determined that the towing services being claimed by Kam’s Towing & Recovery were completely fictitious,” according to the insurer.

Aviva presented its findings to Toronto Police Services.

“While we know that there are many honest and hard-working towing operators in the province, this type of alleged fraudulent activity which is done by a small number of individuals, casts a shadow on the entire towing industry,” Gordon Rasbach, Vice President of Aviva Canada’s Anti-Fraud unit commented in a statement.

“Most major insurers are having a hard look at towing operators as part of their fraud prevention efforts,” he added.

“Historically, the towing industry has not been well regulated. Bill 15 – Fighting Fraud and Reducing Automobile Insurance Rates Act, which is currently in the Ontario Legislature will increase oversight of the towing industry and provide more consumer protection.  Aviva Canada urges the Government to pass Bill 15”.