GTA Police Bust Organized Insurance Fraud Scheme Network
Police in the Greater Toronto Area have dismantled an organized network involved in insurance fraud schemes connected to the local towing industry. The investigation, dubbed Project Outsource, focused on staged vehicle collisions and related criminal activity designed to defraud insurers and gain control over parts of the towing sector.
Peel Regional Police Chief Nishan Duraiappah said the investigation, which began in July 2024, uncovered a coordinated effort by individuals associated with several towing companies to inflate insurance claims by intentionally staging crashes. These incidents were followed by fraudulent repair costs and inflated service fees submitted to insurance providers. The group is also accused of using intimidation tactics, including threats, physical violence, and firearms, to establish dominance in the towing industry.
A total of 18 individuals, 17 men from Brampton and one woman from King City, have been arrested and are facing 97 charges, including fraud, conspiracy, extortion, and weapons offences. As part of the investigation, police seized 18 tow trucks, five stolen vehicles, four personal vehicles, six firearms, hundreds of rounds of ammunition, and two bulletproof vests.
Authorities say the fraudulent activity contributed to increased claims costs, which can have a broader impact on insurance premiums paid by consumers. Police are working with industry partners and regulatory bodies to investigate the scale of the fraud and its effect on insurers and policyholders. The operation is seen as a significant step toward addressing organized criminal activity that has been affecting both the insurance industry and public safety.
