An investigation by York Regional Police Organized Crime and Intelligence Services has laid charges related to organized crime for violent property damage, fraud and drug trafficking, as part of an ongoing joint-forces investigation into the tow truck industry, known as Project Platinum.
The Insurance Bureau of Canada (IBC), which assisted and supported the investigation, said insurers, worked to mitigate the costs of the fraud, including additional costs to the consumer, and actively pursued legal action against various towing companies.
IBC praises those who helped in investigation
"IBC applauds the efforts of all partners involved in this joint-forces investigation, Project Platinum, that resulted in criminal charges being laid," said Bryan Gast, National Director, Investigative Services, IBC.
"Insurance fraud is a safety issue for consumers,” said Gast. “Lives can be put at risk as a result of these criminal actions. Insurance fraud costs Canadians in added insurance premiums, and strains our already burdened health care, emergency services and court systems."
A number of towing companies involved in defrauding insurers
This ongoing investigation has identified several organized crime groups working within the towing industry who have used violence and property damage to gain control and territory within the industry. A number of towing companies have been involved in defrauding insurance companies, using vehicles involved in collisions and staged collisions. These towing companies partnered with auto repair shops, physiotherapy clinics, as well as car and truck rental companies, to carry out this fraud.
IBC said it wants to help consumers avoid falling victim to insurance fraud. The more people report fraud, the more fraudsters can be brought to justice.
