43 arrested in alleged staged collisions scam

Ontarians struggling to keep up with ever-rising auto insurance premiums have fraudsters to thank. York police outlined an alleged staged collisions ring responsible for half a million dollars in false claims.

The Insurance Bureau of Canada opened an investigation into nine allegedly staged collisions two years ago. The people who orchestrated those crashes allegedly filed benefit insurance claims worth $500,000, police said Thursday.

“Our premiums are increasing, on average, by 17 per cent annually and Ontario is now the most expensive place in North America to drive,” Det. Sgt. Mike Elliot said.

This month, police arrested 43 people who are facing 199 charges, including conspiracy to commit an indictable offence, fraud and obstruction as part of a probe dubbed Project Sideswipe.

Arrest warrants are still out for another 22 people.

Investigators say people were recruited and paid to play the roles of driver and passenger in the alleged scam that they say also involved several businesses, including rehab clinics, paralegals and body shops.

Det. Const. Kim Tanczos said the vehicles involved in the staged crashes were all more than 10 years old and in poor condition.

Drivers didn’t report passengers in the car to police, but would later tell insurance companies there were others in the car, police said.

Tanczos said all injuries reported were soft-tissue — no broken bones, which are harder to prove, she said. They were then advised to attend rehab clinics where most services were never provided.

 “These facilities then falsely billed insurance companies by misusing the names and registration numbers of medical professionals, thereby committing identity theft,” she said.