A huge tire theft and insurance scam ring involving a number of tire stores was broken up in Monday morning police raids across numerous Metro Detroit area communities.
The raids came after a months-long undercover operation by the Western Wayne Auto Theft Task Force, Detroit Police Commercial Auto Theft Unit, the FBI and officers from the Livonia and Southfield police departments, according to the Detroit Free Press.
A number of people were arrested, including employees of three tire stores, reports said, and store owners. Dozens of stolen tires and wheels were found stacked in the backyard at one owner’s home.
Police said the multi-tiered theft and insurance scam ring had been operating for years. The tires and wheels were stolen from vehicles, with the losses claimed on the vehicle owner’s insurance. Because insurance companies require the victims to get used/refurbished tires and wheels as replacement, the stolen goods were then sold to body shops and tire dealers.
The stolen tires and wheels, said police, were sold by the thieves for $400 per set, and then get marked up five-fold by the time the insurance company received the claim. Larger tires and wheels gained higher rates, police said.
Police said the thefts extended through multiple Detroit-area towns, including Canton, Dearborn, Detroit, Livonia, Redford Township, Southfield, Sterling Heights, Troy and Warren.
The specific tire stores and store owners and employees involved were not named in reports.