The Toronto Transit Commission says it shut down several counterfeiting operations following the seizure of 20,000 fake transit tickets recovered during a sting operation.

On Tuesday, police in Toronto said they'd laid 450 charges against 307 alleged producers, distributors and users of counterfeit tickets.

Mark Russell, the TTC's staff sergeant of special investigations said the illegal tickets were being sold in Toronto stores, bars and subway entrances for half the actual cost, a fraud that has cost the transit operation an estimated $2 million.

Howard Moscoe

The TTC estimates it loses about $7 million each year due to transfer misuse, counterfeit tickets and other system abuses, said Rick Ducharme, the TTC's chief general manager, money that could pay for the purchase of 14 buses, he added.

"Fare evasion is a key issue we're dealing with constantly," Ducharme said, adding that the investigation into the current alleged ticket fraud is continuing.

Letters were sent to about 1,200 variety and other stores authorized to sell tickets warning against purchasing phoney ones, said commission chairman Howard Moscoe, who warned distributors of "too-good-to-be-true deals."

"The only way to buy tickets in this city is the legal way, or you're going to end up in jail," Moscoe added.

The TTC said new tickets are being designed that should deter counterfeiters.