The Société de l’assurance automobile du Québec (SAAQ) has reportedly closed its Montreal-North service point due to a fraudulent vehicle resale network, it has been learned The Press.
What you need to know
The SAAQ announced on Tuesday the immediate closure of its service centre in Montreal North.
Allegations of corruption were then cited as being investigated.
The Press learned that a vehicle resale network is behind this whole affair.
The company announced Tuesday that it was closing its Léger Boulevard service point due to allegations of corruption. The SAAQ says it made its decision “following reports concerning certain employees of the agent,” the Chamber of Commerce and Industry of Montreal North (CCIMN). A complaint has been formally filed with the Permanent Anti-Corruption Unit (UPAC).
PHOTO JOSIE DESMARAIS, THE PRESS
The SAAQ claims to have made its decision “following reports targeting certain employees of the agent.”
However, the SAAQ was alerted in 2023 by a citizen who said she had heard of a corruption scheme involving at least one counter attendant at the centre. The woman, who spoke in an interview, was working with a man involved in the purchase and resale of vehicles from individuals at the time.
“It was his livelihood,” she says.
The whistleblower claims that the man would show up alone at the counter with false powers of attorney from the sellers, change the transaction amount in the official documents and fraudulently pocket certain sums, according to her understanding.
According to her, the individual boasted about giving between $40 and $50 to the SAAQ employee to facilitate the maneuver. The bribe also allowed him to avoid making an appointment and to cut the line to solicit favors.
Our source claims that several men active in the used car trade were passing the word around at the time and frequenting the same branch. The one who explained to him how the system worked spoke directly of a “cartel”.
“It was fraud. And he was defrauding Revenu Québec. He was defrauding social assistance. So I took pictures of all the cars with the help of a friend, and I sent everything to the SAAQ, by fax and by registered mail. I hadn’t heard from them since,” she emphasizes.
Long process
The SAAQ acknowledges that the first reports in this case were received last year. An internal investigation process was launched before a complaint was forwarded to the police. The police then had to do their own checks, which explains the delay of about a year before the centre was closed, they explained behind the scenes.
A source familiar with the matter clearly confirms that the scenario explained above “is part of what led us to go see UPAC.”
Officially, however, the company remains cautious in its comments regarding our revelations. “Following allegations received during 2023, checks were carried out by our administrative investigations department. Some of these checks led to a complaint to UPAC. The service point was closed for the entire situation,” responds its spokesperson, Gino Desrosiers.
For its part, the CCIMN expressed its surprise at this closure, stressing that “this situation is being taken very seriously.” “We would like to point out that we are working closely with the SAAQ to clarify the circumstances surrounding this event, while affirming that we are in no way involved in the accusations made.”
PHOTO ROBERT SKINNER, LA PRESSE ARCHIVES
Noushig Eloyan, in 2008
CCIMN President Noushig Eloyan was leader of the official opposition in Montreal between 2006 and 2008, mayor of the borough of Ahuntsic-Cartierville from 2001 to 2005 and vice-president of the executive committee for two years, at the turn of the 2000s. She has led the CCIMN since February 2020.
The SAAQ claims to have terminated its “business relationship” with the CCIMN “due to the breakdown of the bond of trust with this agent.” “This situation, although regrettable, highlights the importance of the control mechanisms in place to identify and limit the risks of embezzlement,” it added. This case “could not have jeopardized the security of customer data,” Mr. Desrosiers certifies.
What impact on the service?
The “immediate” closure of the service point may complicate certain operations. Customers who already had appointments scheduled “will be contacted to obtain a new date” at another nearby service point.
We’re making phones. We have a special team that’s on the phone to call all the people who have appointments and relocate them.
Gino Desrosiers, spokesperson for the SAAQ
Mr. Desrosiers maintains that approximately 300 clients were served in this branch on a daily basis. He acknowledges that there may be “a slight downturn for a few days, the time to absorb the surplus,” but that in the meantime, the SAAQ is ready to absorb the demand for appointments with its other service centres.
Asked to react, UPAC spokesperson Mathieu Vidal did not want to comment on the allegations or the evidence.
“Our mandate is to investigate when there are strong reasons to believe that the State is the victim of dishonest acts. We are evaluating the information received, which could, if conclusive, lead to an investigation and the filing of charges,” he simply said.