Car insurance fraud charge triggers urgent warning from police

A man faces fraud charges after police say victims bought fake car insurance documents known as 'pink slips.'

Police allege man was selling forged pink slips in cash deals

Richard Dubin of the Insurance Bureau of Canada said drivers should take steps to ensure they're buying a legitimate policy and not forged insurance documents. "If it sounds too good to be true it is," he said. (CBC)

Police and people who work in the auto insurance industry have a message to drivers who think they're getting a deal on cut-rate insurance policies.

"If someone offers you insurance in a donut shop, rather than in their office, you really have to question the legitimacy of the transaction," said Richard Dubin of the Insurance Bureau of Canada (IBC).  "A red flag should go up immediately."

The warning is prompted by an arrest last week of a man police allege was selling false insurance documents to drivers who thought they were purchasing a legitimate car insurance policy.

Facing two counts of fraud and two counts of uttering a forged document is Alexandr Chertin, 73.

Police allege he sold fake insurance cards, known as pink slips, to unsuspecting buyers. 

In fact what drivers purchased — largely in cash transactions — were falsified documents.

As a result, police estimate about 100 people are driving without valid insurance.

"These people believe they are operating their vehicles with valid insurance and they are not," said Toronto police Det. Robert Ermacora on Monday.
In some cases, drivers learned they were uninsured when they tried to file claims. In other cases, police spotted the forgeries at routine traffic stops.

Police say there are victims all over the Toronto area.

Chertin was released on $7,500 bail and is due back in court later this month.

Those who believe they may have bought insurance from the suspect are being advised to stop operating their vehicles and to contact police immediately.

So how can drivers know they're buying a legitimate insurance policy and not a forged insurance documents?

Dubin said consumers can check with the IBC website. People who suspected they've been scammed can call the tip line at 1-877-422-8477.

He said drivers should be suspicious of any policy sold outside an insurance company's office in a cut-rate cash deal.

"If it seems too good to be true it probably is," he said.