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Fare fraud costs TTC $5M
Police to reveal fraud details today
Just days after fare hike announced
Feb. 10, 2006. 06:06 AM
KEVIN MCGRAN
TRANSPORTATION REPORTER
Police are today expected to reveal details of the arrests made in a counterfeit case that is believed to have "international implications" and has cost the TTC $5 million at a time when it's dealing with a budget shortfall.
At a press conference, police will unveil details of the transit-fare counterfeit ring that is described as one of the largest cases of its kind in Canadian history.
"It's the biggest ever," said an unusually tight-lipped TTC chairman Howard Moscoe. He said the fraud wouldn't impact the fare increase announced Wednesday.
Moscoe said the dollar value of the fraud would have been enough for the TTC to buy 10 regular buses, which cost about $500,000 each.
It's believed fake tokens — easily duplicated with a stamping machine — are at the heart of the scam, although there was a hint yesterday that fake Metropasses may be involved.
"It's not tickets," was all Moscoe said.
It's believed the police fraud squad has made several arrests.
"There a press release being prepared. The idea is to do it jointly," said Staff Insp. Steve Harris of the fraud squad.
TTC officials met yesterday with Toronto police to get updates on the investigation.
"We can't say anything," said TTC spokeswoman Marilyn Bolton. "The most important thing in these things is to get a conviction. We want to be careful what we say, and we don't want to jeopardize that."
The announcement that millions may have been sucked from TTC coffers comes just two days after the commission backed an across-the-board fare hike to help deal with a $16.5 million budget shortfall.
The TTC, which doesn't use watermarks or other special protection measures on tickets or tokens, is an easy target for counterfeiters.
Rick Ducharme, the TTC's general manager, said in late 2004 that the system was losing about $7 million a year to fraud — about a third of that because of fake tickets and tokens. Ducharme said that since 2003 the TTC had laid about 450 criminal and provincial charges against people using phony tickets.
Three brothers were arrested in November 2004 for their alleged involvement in a counterfeit token operation that cost the TTC about $1.2 million over three years. One hundred bogus tokens were being sold for $120 to $130. At the time, buying 100 tokens from the TTC would have cost $190.
The fakes were lighter, thinner, duller and had slightly sharp edges.
In fact, police said, the fakes could not be used in TTC turnstiles.
Those who bought the fakes were told to use them only in fare boxes.
Fare fraud costs TTC $5M
Police to reveal fraud details today
Just days after fare hike announced
Feb. 10, 2006. 06:06 AM
KEVIN MCGRAN
TRANSPORTATION REPORTER
Police are today expected to reveal details of the arrests made in a counterfeit case that is believed to have "international implications" and has cost the TTC $5 million at a time when it's dealing with a budget shortfall.
At a press conference, police will unveil details of the transit-fare counterfeit ring that is described as one of the largest cases of its kind in Canadian history.
"It's the biggest ever," said an unusually tight-lipped TTC chairman Howard Moscoe. He said the fraud wouldn't impact the fare increase announced Wednesday.
Moscoe said the dollar value of the fraud would have been enough for the TTC to buy 10 regular buses, which cost about $500,000 each.
It's believed fake tokens — easily duplicated with a stamping machine — are at the heart of the scam, although there was a hint yesterday that fake Metropasses may be involved.
"It's not tickets," was all Moscoe said.
It's believed the police fraud squad has made several arrests.
"There a press release being prepared. The idea is to do it jointly," said Staff Insp. Steve Harris of the fraud squad.
TTC officials met yesterday with Toronto police to get updates on the investigation.
"We can't say anything," said TTC spokeswoman Marilyn Bolton. "The most important thing in these things is to get a conviction. We want to be careful what we say, and we don't want to jeopardize that."
The announcement that millions may have been sucked from TTC coffers comes just two days after the commission backed an across-the-board fare hike to help deal with a $16.5 million budget shortfall.
The TTC, which doesn't use watermarks or other special protection measures on tickets or tokens, is an easy target for counterfeiters.
Rick Ducharme, the TTC's general manager, said in late 2004 that the system was losing about $7 million a year to fraud — about a third of that because of fake tickets and tokens. Ducharme said that since 2003 the TTC had laid about 450 criminal and provincial charges against people using phony tickets.
Three brothers were arrested in November 2004 for their alleged involvement in a counterfeit token operation that cost the TTC about $1.2 million over three years. One hundred bogus tokens were being sold for $120 to $130. At the time, buying 100 tokens from the TTC would have cost $190.
The fakes were lighter, thinner, duller and had slightly sharp edges.
In fact, police said, the fakes could not be used in TTC turnstiles.
Those who bought the fakes were told to use them only in fare boxes.
