Ontario government proposes penalties for car fraud

The Ontario government introduced new penalties for false vehicle identification numbers (VINs) on Friday, including a fine of up to $100,000 and six months in prison if convicted, the same day Toronto police said they had charged hundreds in an ongoing investigation allegations of false VIN numbers involving some ServiceOntario employees.

VIN fraud involves exchanging the VIN for a stolen vehicle before reselling it. Proposed provincial legislation would create a new offense under the Highway Traffic Act for knowingly providing a false VIN when applying for a vehicle permit, the province said in a news release Friday.

“It is these types of activities, while appearing to be almost victimless crimes, that are leading to car thefts, nighttime robberies and chaos in communities across the province,” Transport Minister Prabmeet Sakaria said at a press conference on Friday.

Provincial authorities said penalties could also include suspension of a driver’s license or vehicle permit for up to one year.

If a vehicle is stolen, the VIN is marked throughout North America to prevent it from being sold.

However, criminals replace the VIN plate, often with one from a comparable vehicle that was stolen, legally exported or registered in another U.S. province or state, previously CBC News reported.

ServiceOntario employees involved in fraud: police

At a separate press conference on Friday, Toronto police said they had recovered more than 360 stolen vehicles and arrested 59 people in an investigation that began in July.

The police said in a press release on Friday that the defendants were charged with numerous charges of using false documents and possessing stolen property. In total, the police filed 302 charges.

Extra. Ron Taverner said the defendants mostly created the VINs, with some taken from scrap vehicles or vehicles that had been written off by insurance companies.

Police also said they uncovered a scheme run by employees of an unspecified ServiceOntario location to register false VIN numbers to sell stolen vehicles to unsuspecting buyers at a significant discount.

Police said in a news release that employees knowingly used false documents provided by the defendants to make it appear that the VIN numbers were valid and then registered real Ontario license plates under false VIN numbers.

Taverner said no ServiceOntario employees have been arrested yet, but arrests are expected. He added that police are cooperating with the Ministry of Transport as part of an ongoing investigation into the alleged fraud

A Toronto police investigation also uncovered the existence of “chop shops” in the city – typically warehouses where stolen vehicles are quickly broken down into smaller parts and shipped overseas, Taverner said.

As stated in the release, investigators found stolen vehicles from containers intended for transport abroad. One container of stolen vehicles was found in Belgium and is being transported back to Canada.

Police estimate the value of all vehicles recovered in the investigation to be $14 million.

When purchasing a used vehicle, Taverner said buyers should obtain a vehicle history document from the Department of Transportation and check for discrepancies, such as the color of the vehicle compared to the color listed on the document.

“You have to make sure you know who you’re buying from,” he said. “If a deal looks too good to be true, it probably is.”

The Canada Border Services Agency, the Ontario Provincial Police, as well as police in York, Durham and Montreal were also involved in the investigation, the release said.

Police said investigators flagged more than 100 falsely registered plates and VINs in police databases.