Organized crime group defrauded MPI of $800,000
On August 17th, 2010, the Winnipeg Police Service released information regarding a joint investigation by the Commercial Crime Unit and Manitoba Public Insurance’s Special Investigation Unit.
The investigation operating as Project Rollback identified an organized crime group responsible for defrauding Manitoba Public Insurance for approximately $800,000.00. This fraudulent scheme 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, this organized crime group received inflated MPI claim payouts for their vehicles well in excess of fair market value.
After nearly a year of reviewing evidence, and in consultation with a Crown Attorney, it was determined that additional charges were warranted. The following charges have been authorized:
- Participate in a Criminal Organization
- Commission of an Offence for a Criminal Organization
It’s believed this is the first time these charges have been laid in a fraud investigation in Winnipeg, Det. Sgt. Sandra Martin of the commercial crime unit told the Winnipeg Sun.
The suspects are accused of buying luxury vehicles outside of the province, bringing them to Manitoba, rolling back odometers to increase their value, doctoring sales records, staging collisions or hit-and-runs to make them write-offs, and making false stolen vehicle reports.
The suspects allegedly collected Autopac payouts over several years.
