14 April 2008
Ottawa, Ontario
Trafficking in or "fencing" property obtained by crime is the process that makes theft and other property crimes profitable. Goods are stolen or fraudulently obtained, then sold to unsuspecting consumers. Trafficking in stolen property, like automobiles, is one of the numerous ventures that make organized crime so profitable.
Trafficking in stolen cars and auto parts is a particular form of property crime that carries serious economic and public safety costs for Canadians. Approximately 170,000 vehicles are stolen in Canada each year. It is estimated that auto theft costs Canadians over $1 billion a year, and public safety is jeopardized by the dangerous driving associated with auto theft.
In a report published in 2004, Statistics Canada estimated that roughly 20 per cent of stolen cars are linked to organized crime activity. These groups participate in three principle aspects of auto theft:
- First, they operate "chop shops" where stolen vehicles are disassembled and their parts are trafficked to often unsuspecting customers.
- A second area of activity involves the "re-vinning" of vehicles, in which the Vehicle Identification Number (VIN) of a stolen car is altered, obliterated or destroyed. All vehicles in Canada are required to have a VIN in order to distinguish one motor vehicle from another. Criminal car theft rings typically replace the VIN of a stolen vehicle with one from a legitimate vehicle of the same make and model, essentially altering the vehicle's identity.
- Finally, organized crime groups are involved in the export of high-end sport utility vehicles and luxury sedans.
The proposed offences in this Bill would address trafficking in stolen or fraudulently obtained property generally, including all three aspects of organized crime's involvement in auto theft.
This legislation responds to a commitment made by federal, provincial and territorial Ministers Responsible for Justice and Public Safety to work together to develop solutions to the problem of auto theft.
Proposed Amendments
Trafficking in or Possessing for the purpose of trafficking Property Obtained by Crime Offences, including importing or exporting
Currently, the general offence of possession of property obtained by crime – which carries a maximum of 10 years imprisonment for property valued over $5000 –, is the principal Criminal Code offence that is currently used to address trafficking in property obtained by crime. There are no 'trafficking' offences that adequately capture the full range of activities involved in trafficking, such as selling, giving, transferring, transporting, importing, exporting, sending or delivering stolen goods.
The proposed legislation would give law enforcement and prosecutors new tools to combat those who participate in any part of the entire range of activities that are involved in the disposal of illegally obtained goods, by making it an offence to traffic in property obtained by crime, or possess this property for the purposes of trafficking.
The proposed offences provide for a wide definition of trafficking that would include the selling, giving, transferring, transporting, importing, exporting, sending or delivering of goods, or offering to do any of the above, of property obtained by crime. As such, this new law would target all of the middlemen who move stolen property, from the initial criminal act through to the ultimate consumer.
Both proposed offences have higher penalties than the existing offence of possession of property obtained by crime:
- If the value of the item trafficked exceeds $5,000, anyone convicted of this offence could face imprisonment up to 14 years.
- If the value does not exceed $5000, it would be what is known as a hybrid offence, and subject to imprisonment up to 5 years on indictment or up to 6 months on summary conviction.
The movement of stolen property, especially automobiles, across Canada's international borders is a profitable enterprise for organized crime. In order for the Canada Border Services Agency (CBSA) to bar the cross-border movement of property obtained by crime, goods must first be classified as prohibited goods for the purpose of importation or exportation under the Customs Act. Without such a prohibition in federal legislation, the CBSA does not have the mandate to detain stolen property. In other words, there are no federal laws that prohibit the importation or the exportation of property obtained by crime.
To address this concern, the Bill contains a prohibition against the importation or exportation of property obtained by crime that will trigger the administrative enforcement powers of the CBSA, allowing the Agency to bar the cross-border movement of stolen goods. In the case of auto theft, CBSA officers would be able to investigate, identify and detain imported vehicles or vehicles about to be exported and search databases to determine whether or not such vehicles are stolen. These actions could ultimately result in evidence that would allow the police to lay criminal charges.
VIN-tampering Offence
There is no offence in the Criminal Code that directly prohibits the alteration, obliteration or removal of a VIN.
The proposed amendment would make it an offence to wholly or partially, alter, obliterate or remove a VIN on a motor vehicle. Under the new amendments, anyone convicted of tampering with a VIN could face imprisonment for a term up to 5 years on indictment or 6 months, or a fine of not more than $2,000, or both, on summary conviction.
The proposed offence does not include lawful behaviours such as automobile body repair, recycling and wrecking.
