Auto insurance fraud ring in Manitoba draws organized crime chargesWinnipeg police have laid criminal organization charges as part of its ongoing investigation into an auto insurance fraud ring.
According to the Winnipeg Sun, this is the first time an auto insurance fraud investigation is believed to have resulted in organized crime charges.
In August 2009, a series of arrests were made as a result of a joint investigation between Winnipeg Police Services and Manitoba Public Insurance dubbed ‘Project Rollback.’
“After nearly a year of reviewing evidence, and in consultation with a Crown Attorney, it was determined that additional charges were warranted,” a Winnipeg Police Services release says.
Three individuals have received additional charges of:
• participating in a criminal organization; and
• commission of an offence for a criminal organization.
The joint investigation identified an auto fraud scheme that involved odometer rollbacks, sale document manipulation and staged incidents including staged collisions, hit-and-run collisions and false stolen vehicle reports.
As a result of the fraud ring, participants are alleged to have received inflated MPI claim payouts in excess of fair market value and defrauded the insurer of roughly $800,000, according to police.