2012-08-10
Forty-six
suspects have been charged in connection with an alleged auto fraud
scheme called Project Sideswipe involving staged collisions and
suspected false medical billings in Ontario.
One hundred and forty-two charges have been laid to date, including
conspiracy to commit an indictable offence, fraud under $5,000, fraud
over $5,000 and obstruction of a police officer, notes a statement from
the York Regional Police (YRP).
Project Sideswipe involved nine alleged staged collisions that
occurred in York Region, as well as suspected associated false medical
billings from several medical rehab and assessment centres in Brampton,
Toronto and Mississauga, notes a statement from the Insurance Bureau of
Canada (IBC). The allegations have not been proven in court.
Police believe a ring of recruited drivers and passengers staged
collisions to support accident benefit insurance claims. Medical rehab
and assessment centres would then use the names, signatures and college
registration numbers of medical practitioners, without their proper
authorization, and invoice insurance companies for services that were
not rendered, the IBC reports.
Rick Dubin, vice president of investigation services for the IBC,
characterized the efforts as yet, "another step at driving a wedge into
one of the alleged sophisticated fraud networks, operating throughout
the Greater Toronto Area.”
“The potential loss to nine insurers is still being calculated, but
it is estimated to be somewhere in the neighbourhood of $5 million,”
Dubin notes in the statement.
“Insurance premiums are driven by claims costs and right now costs
have been driven through the roof in Ontario as a result of fraud and
abuse in the system.” Results from a KPMG study estimate the annual cost
of auto insurance fraud in Ontario to be in the range of between $770
million and $1.6 billion per year.
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