Illegal car ‘wash’ shut down; man charged in elaborate scheme

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A joint investigation between city police and the province’s Crown vehicle insurer has hammered the brakes on what Manitoba’s justice minister calls one of largest auto theft busts in the province’s history.

The Winnipeg Police Service and Manitoba Public Insurance said 17 vehicles, including high-end Mercedes, Jaguar and Lexus models worth approximately $1 million, were recovered after being stolen between January 2021 and March 2024.

“Thanks to innovative technology developed by MPI’s special investigation unit, investigators were able to detect fraudulent vehicle registrations exposing two separate criminal organizations,” Justice Minister Matt Wiebe said during a news conference on Friday.

Wiebe said auto theft has historically been a serious issue in the province. Theft claims rose 48 per cent from 2017 to 2023, he said.

Wiebe said the bust highlights what can be achieved when the publicly owned auto insurer works in lockstep with other agencies to combat crime.

“This is exactly the kind of proactive enforcement we need to disrupt organized crime and prevent Manitobans becoming victims of auto fraud,” Wiebe said.

The investigation, dubbed Project Buyer Bee Aware, uncovered a sophisticated vehicle identification number cloning scheme, with several vehicles sold to four local car dealerships and private citizens.

The scheme replicated VINs from legally registered vehicles in Ontario and attached them to the stolen vehicles, including 16 imported into Manitoba from Ontario and one that was locally sourced.

The joint WPS and MPI investigation was launched in February 2024 after the WPS commercial stolen auto unit recognized that a suspect was using people he knew to register out-of-province vehicles in Manitoba.

Commercial stolen auto unit officers began visiting car dealers and confirmed the vehicles sold to the four dealerships were stolen from Ontario, with most of them coming into the province from mid-2023 onward.

After obtaining search warrants, police searched a home on the 100 block of St. Martin Boulevard in Winnipeg and a business in the 200 block of Jean Marc Avenue in the Rural Municipality of Springfield on April 17.

Police arrested a Winnipeg man, 23-year-old Mohamad Kasem, in April and then again in early December after the investigation evolved.

He now faces 68 charges, including 18 counts of tampering with a vehicle identification number, 18 counts of possessing a forged document, 14 counts of fraud over $5,000 and 17 counts of possessing property obtained by crime over $5,000. He was released on an appearance notice.

Investigators allege Kasem sold vehicles to car dealerships, through online platforms and out of his vehicle repair shop.

“He has a legitimate business where he buys salvage vehicles and fixes them up and puts them back on the street,” said Det. Trevor Wuerch of the WPS stolen auto unit. “He had the equipment and the knowledge to do this.”

Wuerch said minor inconsistencies in trim levels and vehicle colours ultimately tipped off police to the scheme.

“The dealerships, I don’t blame them because this is relatively new to Manitoba,” he said.

Wuerch said the dealerships were “very co-operative” during the investigation.

MPI CEO Satvir Jatana said Friday the car dealers made the situation “whole” for buyers by fully reimbursing them. The rest of the unsold cars on dealership lots were seized by police.

WPS Supt. Cam Mackid said the investigation is ongoing, and further seizures and arrests are expected.

“Whether this investigation has a nexus to established organized crime groups in other jurisdictions is still under investigation,” Mackid said.

Police said there’s been an influx of stolen cars in the province after authorities in Ontario cracked down on stolen vehicles being exported overseas.

“Through this investigation, I think we have vastly improved our capacity to detect and investigate cases where vehicles are being stolen and fraudulently misrepresented, whether it’s being done locally or interprovincial,” Mackid said.

“By continuing with these efforts, our hope is to make Manitoba a very inhospitable… environment for those looking to perpetrate crimes related to auto theft upon Manitobans.”

Mackid said buyers must be vigilant when purchasing a vehicle, including researching the owner history and having a mechanic inspect it.

“At a reputable dealer, you’re going to have a certain degree of comfort,” Mackid said. “But as you can see here, cars can get through. It’s a good reminder to citizens and dealers to be hyper vigilant to verify cars as they come in for sale.”

scott.billeck@freepress.mb.ca