Tow truck drivers hooked into scrap metal scam

Police say criminals are casing junk cars in random yards, calling tow companies, and getting cash as the car is towed away for scrap.

Desperate times, desperate measures, said Ryan Haluptzok about a new scam in the scrap metal market.

Haluptzok, owner of Classic Towing and Recycling in Duluth, has been scammed by people selling him junk cars they don’t own. According to the Duluth Police Department, criminals are casing junk cars in random yards, calling tow companies, and getting cash as the car is towed away for scrap.

“People come home and say, ‘Hey, my car is gone,’” police Sgt. Chad Nagorski said.

Cases are under investigation, Nagorski said, mainly because of the cooperation of towing companies that have been duped. It’s happened twice in the past month to Haluptzok.

“I bought a couple downtown,” he said.

It isn’t uncommon that people don’t have a title to show proof of ownership, Nagorski and Haluptzok both said, especially if it looks like the car’s been sitting a long time. While Haluptzok will take a car without proof of ownership, those who are selling are required to provide driver’s licenses.

Police are trying to verify whether the identities offered were legitimate.

“Scrap prices are going up,” Haluptzok said, so he isn’t really surprised to hear about the scam. He’s been giving $150 to $250 per car recently.

In August, the St. Paul Police Department made 10 arrests in a similar scrap car operation after a three-month investigation. More than 50 vehicles were claimed illegally and sent to scrap yards. In some cases, tow truck drivers were involved in the scam.

After those arrests, officials called for tighter state law on providing proof of ownership.

Nagorski said no tow truck operators are suspected in Duluth and they have been cooperative with police after being told about the scam.

“We don’t believe at all that they are involved,” he said.

Nagorski said thieves have sold cars in Superior as well, part of what tipped Duluth officers to a growing trend.

“There are a lot of cars in yards in Duluth,” he said.

He said the appeal of the scam is that the criminals “don’t have to touch anything,” Nagorski said, they just call, get the cash and walk away.

Duluth police are asking residents to watch their neighborhoods for tow trucks, exchanges of cash, or any other peculiar activity. Nagorski said there will be a response to such reported activity. With the help of towing companies, salvage yards and the public, “this can be prevented,” he said.

Haluptzok is being more careful about anyone selling a car for scrap.

“The average person will have keys for it, give some history,” he said. “It’s not often that we run into a problem. But when we get two in a row, that’s something.”

NEWS SOURCE