Predatory towing leads to fraud charges against 11 Edmonton company owners – Edmonton

Months after a warning was issued about unethical predatory towing practices in Edmonton, police have laid fraud charges against several local tow truck operators.

The Edmonton Police Service on Wednesday said it had charged 11 owners of 10 local tow truck companies in relation to fraudulent billing practices to insurance companies.

Last summer, police began investigating the business practices of tow truck companies that were allegedly demanding people to use their services at the scenes of collisions.

The  Alberta Motor Association (AMA) also issued a warning about predatory towing this past winter. The AMA said unethical operators will arrive at a collision or breakdown scene uninvited, create a false sense of urgency to move the vehicle, and ultimately leave drivers facing huge fees.

The association said until 2024, tow truck “accident chasers” were virtually non-existent. But then, last summer, the province saw a sharp increase in complaints — Edmonton and Calgary in particular.

The AMA said it’s important to know your rights before scammers show up:

• You have the right to refuse unsolicited towing services
• You have the right to choose who tows your vehicle, and where, unless otherwise directed by police
• You have the right to access your vehicle to retrieve personal items during a storage facility’s business hours
• You have the right to ask if the towing company receives a kickback for taking your vehicle to a particular storage facility or repair shop
• You have the right to a quote prior to service, and an itemized invoice prior to making payment

Police said during their investigation, officers discovered numerous tow truck companies in Edmonton were allegedly fraudulently billing insurance companies for services that were not provided.

EPS said they also learned the companies were allegedly inflating bills, including charging upwards of $5,000 for a basic collision tow that is estimated to typically cost only a few hundred dollars.

Police estimate, at this time, 10 companies have fraudulently billed insurance companies an estimated combined total of over $120,000.

“Fraud through direct billing to an insurance company can be especially difficult for the policy holder to notice,” said Det. Bryan Niehaus with the EPS’ investigation response team.

“It is always best to contact your insurance provider for a complete invoice of services after using a tow truck company.

“As always, motorists have the right to choose their tow truck provider and should not feel obligated to accept services at the scene of a collision.”

Edmonton police do not believe the 10 different independent businesses or their 11 owners have any professional relation to one another.

Between March and May, police charged the owners of the following companies with fraud:

1. AMK Towing — Mostafa Khalaf, 28
2. Avenue Towing — Madlool Traim, 52
3. Discount Towing Ltd. — Mahmoud El Annan, 42
4. Edmonton Towing Services Ltd. — Parminder Swatch, 46, and Ravinder Toor, 51
5. Infinity Towing & Recovery Services Corp. — Mehdi El Alouane 41
6. My Big Tow Inc. — Mahmoud Mahdaoui, 42
7. Same Boss Towing Ltd. (formerly Super Towing Ltd.) — Hasan Al-Adhban, 49
8. TBT Towing Ltd. — Sukhijinder Singh, 38
9. Unlimited Towing & Recovery Service Ltd. — Ahmed Ait Rais, 38
10. 2652736 Alberta Inc. — Rojan Sivarajah, 35

Court dates for these business owners have been taking place over the month of May, police said, adding the towing fraud investigation remains ongoing.

— with files from Jasmine King, Global News

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