Montreal's towing industry dominated by violence, organized crime, report says

Montreal's towing industry has been infiltrated by organizedcrime groups that resort to violence and intimidation to secure profits, according to a report released Monday by the city's inspectorgeneral.

The report contains witness accountsof an industry in whichcompanies aggressively seek to limit competition in the boroughs where they operate.The names of individuals and businesses were withheld to protect thewitnesses' safety.

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These companies, many tow-truck owners told the inspector general, have ties to one of the main organized crime networks in the city, be itthe Hells Angels, the Mafia or street gangs.

Protection money demanded

The owner of one company said he had to pay between $500and $700 per week in protection money to a member of the Hells Angels if he wanted to continue operating without competition in his borough.

Failure to pay, the report reads, could result in threats or acts of intimidation. There appears, moreover, to be little desire on the part of organized-crime members to disguise their affiliations.

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"The investigation showed thatentrepreneurswho are members of criminal organizations, or close to influential organized-crimemembers,don't hesitate to display their colours in the milieu," reads the report byDenis Gallant,the city'sinspector general.

Mayor DenisCoderreadmitted he was taken aback by the findings.

"When you're looking at it, and reading, it's scary,"Coderresaid of Gallant's report. "You're asking yourself,'What's going on here?'"

Coderresaid the city had already taken measures to reduce the influence of organized crimewithin the industry, including transferring oversight oftow trucks from the city's taxi bureau to the police force.

Coderre accused of being too passive

The opposition at city hall, though, said the mayor could have done more to limit the "wild west" situation in the towing industry.

"What disturbed me was the passivity of theCoderreadministration in tackling the problem," saidAlex Norris, acouncillorforProjetMontral.

Norris attributed the reach of organized crime to the city's failure tohold calls for tenders in the areaswhere no firm had won the rights to tow vehicles.

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Gallant's bombshell reportalso details how the owners of some towing companies have managed to skirt measures designed to keep them from receiving public contracts.

A handful of entrepreneurs have been subjected to a five-year ban frombidding on city contracts, for having participated in price collusion schemes.

But Gallant writes that they have been able to get around the ban by using their spouse'sname or by setting up shell companies.

Gallant's report includes 11 recommendations, including instituting tougher vetting practices before city towing contracts are awarded.