Dozens of people were arrested in early-morning raids across the city Thursday morning related to a string of staged collisions – moves that have huge financial repercussions for residents and insurance companies.
Toronto Police began their investigation, dubbed
Project Whiplash, in 2009, when two vehicles were brought in to a collision reporting centre. To senior officers there, "something just didn't seem right," Insp. Gord Jones said at a news conference Thursday.
In that crash, Jones said, charges were laid and the individuals pleaded guilty. It also sparked a larger investigation that involved the Insurance Bureau of Canada.
"Insurance criminals take money right out of your pocket," Jones said. "Insurance crime is not victimless...the cost to Canadians is estimated to be more than several billion dollars a year in insurance premiums, plus that the costs of the police, health care, and the courts system."
Richard Dubin, vice-president of investigative services at the Insurance Bureau of Canada, said there were common medical facilities among many of the suspected staged collisions.
"They've made claims that they've received treatment when in fact they have not," Jones explained.
Det. Const. Kajamuganathan Kathiravelu said Thursday that most of those involved in the investigation were from the South Asian community.
”They are being exploited by members of their own community… Don't get yourself involved," he cautioned, then repeated his message in Tamil.
Members of this ring would often work in pairs. In some cases one of the two would intentianly cut in front of an unsuspecting driver, forcing them to slam on the brakes.
That's when a person in a second car would rear end them.
The raids were headed up by Traffic Services. The Toronto Police financial crimes unit and the Financial System Commission of Ontario were also involved.
Officers targeted more than 50 addresses in the operation and arrested 37 people. Most of the suspects were taken to 43 Division on Lawrence Avenue, near Morningside Avenue, in Scarborough.
More than 130 charges were laid. Nine of the accused will appear in court on Feb. 24.