Toronto police say they have charged two people, who were salesmen at a “branded” car dealership, in connection with fraudulent auto sales of stolen vehicles to unsuspecting buyers.
Det. Dan Kraehling told reporters on Wednesday that they launched Project Warden in August to identify people involved in the trafficking of stolen vehicles.
Kraehling alleged that two suspects, who were employed as salespeople at a dealership in Toronto, used their job to sell stolen cars.
“They were using their position to acquire and sell stolen motor vehicles to unsuspecting buyers, pass them off as legitimate,” he said.
Kraehling alleges one of the accused salespeople would source stolen used vehicles from fake numbered companies and use the dealership’s own funds to purchase them, and then the vehicles were “fraudulently presented as legitimate to unsuspecting buyers.”
“To further the deception, the accused would generate fictitious sales documents using stolen and fake VIN numbers,” he said. “They would also modify and alter Carfax reports so that they could present the vehicle as a legitimate purchase to an unsuspecting buyer.
“The stolen vehicles would then be delivered to the buyer, unbeknownst to them the paperwork that they had just filled out didn’t match the vehicle they had taken possession of.”
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Kraehling said in some cases the vehicles were falsely registered to individuals that were not listed on the sales documents — including a person who was deceased at the time of the sale.
Following several search warrants, officers recovered two suspected re-vinned vehicles as well as several documents and electronics used in the scheme, Kraehling said.
To date, Kraehling said investigators have linked 22 fake auto sales that were conducted while the accused were acting in their capacity as legitimate car salespeople.
The financial loss is around $2.18 million, which affected both the dealership and the buyers, he said.
Kraehling also said the scam ran for about a year and that the dealership caught on several months after the two accused started working there, and reported it to police. Police would not name the dealership, or which car brand it was, where the transactions occurred.
When asked by reporters if there are any links to ServiceOntario in relation to the fraudulent scheme, Kraehling said that part is still being investigated.
In previous cases, employees from ServiceOntario have been arrested and charged for playing a part in re-vinning vehicles. The Ford government recently announced it plans to dramatically increase the punishments for VIN fraud to include hefty fines, licence suspensions and the potential for jail time.
Two people, a 35 and 32-year-old man are facing 176 charges. The charges include forgery, altering or removing a VIN (vehicle identification number) and uttering a forged document.
Investigators are asking anyone who may have purchased a vehicle from the suspects to come forward to police.
“As always, when purchasing a used vehicle we recommend people do their due diligence by purchasing independent vehicle history reports and comparing them to the vehicle that you’re purchasing,” he said.
Kraehling also warned that even if a car comes from a “branded dealership,” double-check the vehicle. He noted for used cars that it is easier to detect discrepancies between the reports.
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