Bell and Quebec Police Just Took Down a Massive Cellphone Fraud Ring

Police in Quebec carried out a major operation in Laval this week targeting a group suspected of running a cellphone fraud and stolen-electronics scheme, with Bell identified as one of the companies affected.

The Sûreté du Québec’s (the province’s police force) major crimes division led the raid, working with Bell and the Laval police service, they announced on Thursday. About 40 officers searched three homes and one business in the city. Investigators say the business is believed to have handled stolen phones obtained through fraud.

The investigation stems from an extortion case involving Daniel Sabir, who was charged earlier this year. During the first phase of the probe, officers seized more than $1 million in vehicles and boats that were allegedly stolen or fraudulently acquired.

Police say the suspects recruited people to open wireless accounts and secure financed smartphones, which were then shipped overseas. The scheme allegedly hit multiple carriers and cost Bell more than half a million dollars. Recruited victims were left with debts and credit problems when the accounts went unpaid.

Authorities warned the public to be wary of offers promising quick cash. The Sûreté du Québec said these scams often lead to serious financial consequences for victims, and investigators are continuing efforts to recover assets and lay further charges.

Anyone with information about criminal activity is urged to contact the Sûreté du Québec’s criminal information centre at 1-800-659-4264.

The news comes after Bell was told by the CRTC to stop selling locked smartphones, which the company claimed was to combat fraud.

Update: Bell confirmed to iPhone in Canada that its temporary phone-locking policy (now under fire from the CRTC) was intended to deter the kind of criminal activity uncovered in the Laval case.