Auto insurance fraud ring busted by Winnipeg police
Last Updated: Thursday, August 13, 2009 | 2:47 PM CT
CBC News
MPI officials say an organized ring was involved in a sophisticated auto insurance fraud. (CBC)Winnipeg police have arrested at least 15 people after members of an organized fraud ring bilked the Manitoba Public Insurance Corp. of hundreds of thousands of dollars.
MPI's special investigation unit caught on to the fraudulent automobile insurance claims in November last year.
A spokesman for the publicly owned MPI called the group a "gang" and said its members operated in concert to purchase high-end SUVs in other provinces and bring them across the border.
The vehicles would be repaired to meet Manitoba safety requirements and their odometers rolled back to increase their apparent value. The group would then stage collisions to destroy the vehicles and subsequently try to collect on a fraudulent vehicle insurance claim.
MPI spokesman Brian Smiley said the company hasn't seen anything like it before.
"This is unique, and it is a gang committed to defrauding the corporation, and they are sophisticated," he said. "They knew what they were doing, and fortunately our investigators were able to determine what was happening, and at this point arrests have been made, property seized, documents seized."
Smiley said it's too early to calculate the exact dollar value of the frauds, but he said it's in the hundreds of thousands of dollars.
Police executed several search warrants in Winnipeg on Wednesday, using the tactical unit in a number of takedowns. MPI said it expects more arrests to follow.
Share Tools
Latest Manitoba News Headlines
- Prisoner dies at Stony Mountain
- A 56-year-old man who spent most of his adult life in prison, has died at the Stony Mountain Institution, corrections officials say. more »
- Winnipeg WWE wrestler Chris Jericho suspended after flag incident
- Winnipeg native Chris Jericho has been suspended by the WWE after he crumpled and kicked a Brazilian flag at the WWE's debut show in Brazil. more »
- Missing boater may have struck reef, police say
- A boater who has been missing since Tuesday may have struck a reef, police say, adding a search for the man is continuing. more »
- Crime spree ends with 46 break-in charges
- Police in Winnipeg think they have caught the person behind a string of early-morning break-ins, where a vehicle was used to smash into businesses. more »
Top News Headlines
- Everest team unable to bring down Toronto woman's body
- Bad weather has hampered the recovery team that is attempting to bring down the body of a Toronto woman who died trying to climb Mt. Everest. more »
- 32 Syrian children die in artillery attack, says UN
- More than 90 people have been killed by regime forces in a district of central Syria, with the head of the UN team in the country confirming at least 32 children and 60 adults were killed the attack. more »
- Woman's remains found in hockey bag on Cape Breton river
- Police in Nova Scotia are investigating after a woman's remains were found in a hockey bag floating on a Cape Breton river Friday night. more »
- Montreal student group says Bill 78 must be priority
- Quebec's coalition of student associations says Bill 78 must be a priority if a new round of negotiations start up with the government in the ongoing tuition conflict. more »
- Winnipeg WWE wrestler Chris Jericho suspended after flag incident
- Crime spree ends with 46 break-in charges
- Missing boater may have struck reef, police say
- Outhouse bear attack survivor was grabbed from 'throne'
- First-time homebuyers find frustration in Winnipeg
- Winnipeg's Union Station to get facelift
- RCMP to close labs in Halifax, Winnipeg, Regina
- Prisoner dies at Stony Mountain
- Kelvin High School celebrates 100 years

