Toronto police link ServiceOntario staff to fake VIN scheme as Ontario proposes penalties for auto fraud

The Ontario government proposed new penalties around fraudulent vehicle identification numbers (VINs) on Friday — including a fine of up to $100,000 and six months in jail if convicted — on the same day Toronto police said they’ve laid hundreds of charges in an ongoing investigation into fraudulent VINs that implicates some ServiceOntario employees. 

VIN fraud involves replacing the VIN for a stolen vehicle before reselling it. The proposed provincial legislation would create a new offence 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’s these types of activities that, despite seeming like almost victimless crimes, are driving carjackings, late-night robberies and chaos in communities throughout the province,” said Transport Minister Prabmeet Sakaria at a news conference Friday. 

Penalties could also include driver’s licence or vehicle permit suspension up to one year, the provincial release said. 

When a vehicle is stolen, the VIN is flagged across North America to prevent it being sold.

But criminals are replacing the VIN plate, often with one from a comparable vehicle that has been totalled, legally exported or one registered in another province or U.S. state, CBC News previously reported. 

ServiceOntario workers involved in fraud, say police

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

The accused people face numerous counts of using forged documents and possession of stolen property, police said in a news release Friday. They range in age from 18 to 69 years old and are from across the GTA, police said. 

In total, police have laid 302 charges. 

Supt. Ron Taverner said that accused parties mostly created VIN numbers, while some were taken from scrap vehicles or vehicles that had been written off by insurance companies. 

Police also said they uncovered a scheme by employees of an unspecified ServiceOntario location that involved registering fraudulent VINs to sell stolen vehicles to unsuspecting buyers at a steep discount. 

The employees knowingly used fake documents provided by the accused people to make it look like the VINs were valid, and then registered real Ontario licence plates to the fake VINs, police said in the release. 

More arrests to come

Taverner said no ServiceOntario employees have been arrested yet, but are expected. Police are working with the Ministry of Transportation in an ongoing investigation into the alleged fraud.

The Toronto police investigation also revealed the existence of “chop shops” in the city — typically warehouses where stolen vehicles are quickly cut up into smaller parts and shipped overseas, Taverner said. 

Investigators found stolen vehicles from shipping containers intended to go overseas, the release said. One container with stolen vehicles was found in Belgium and is being transported back to Canada. 

Police said they estimate all recovered vehicles from the investigation to have a value of $14 million. 

When buying a used vehicle, Taverner said that buyers should get a vehicle history document from the Ministry of Transportation and check for discrepancies, such as the colour of the vehicle compared to the stated colour in the document. 

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

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

Investigators have flagged more than 100 falsely registered plates and VINs on police investigative databases, police said.