An Edmonton auto recycling company contracted to destroy approximately 950 retired police vehicles allegedly diverted hundreds of them for resale in Canada or export overseas instead of scrapping them as required, according to RCMP investigators who announced the findings in November 2025.
- Penny Metal Recycling was contracted through GCSurplus to scrap 950 retired police vehicles beginning spring 2025, but hundreds were allegedly diverted for resale or export
- The investigation uncovered a broader criminal network responsible for over 80 stolen or fraudulently obtained vehicles valued at $6 million outside the government fleet
- Five men face charges including trafficking in stolen property, smuggling, fraud, and possession of stolen property related to the operation
- Officers also seized more than 4 million illegal cigarettes valued at over $1 million on the illicit market with $400,000 in unpaid taxes
- Penny Metal Recycling Ltd. has been declared ineligible for federal contracts for eight years, from April 2026 to April 2034
An auto recycling firm in Edmonton was contracted to destroy approximately 950 retired police vehicles, but hundreds were allegedly diverted for resale in Canada or export overseas, Royal Canadian Mounted Police investigators allege.
The vehicles were supposed to be scrapped under federal contracts awarded to Penny Metal Recycling beginning in spring 2025.
By November 2025, investigators had discovered that an alleged criminal network had obtained potentially hundreds of government vehicles under false pretences. Instead of being destroyed, they were sold domestically or shipped abroad, according to a Nov. 4 police press release.
Police announced details of the investigation at a news conference that day.
Penny Metal Recycling representatives did not respond to requests for comment.
The disposal contracts were awarded through GCSurplus, the federal program for handling surplus government assets. Investigators said there was no indication when the contracts were awarded that vehicles would be handled contrary to the agreements.
The precise number allegedly diverted was not disclosed.
Penny Metal Recycling operates a scrap metal and vehicle recycling facility at 11404 143 St. NW in Edmonton. According to company representatives’ account on its website, the business began as a small operation more than 15 years ago and expanded to process end-of-life vehicles and industrial scrap. Customers include automotive shops, construction companies, trucking operators and municipalities.
Federal procurement records separately list Penny Metal Recycling Ltd., with an address in St. Albert, as ineligible to enter federal contracts for eight years, from April 7, 2026, until April 7, 2034. The grounds for that determination are not provided in the public listing.
The retired police vehicles were one part of a wider investigation into stolen vehicles, altered identification numbers, insurance fraud and overseas sales.
Alberta RCMP Auto Theft Unit officers began investigating in June 2024 after identifying a person they believed was heavily involved in the province’s stolen-vehicle market.
Over the following two years, investigators identified an alleged network operating across Canada and internationally.
“This group was responsible for driving a significant portion of the market for stolen vehicles in Alberta over the past several years, impacting insurance rates across the province and causing significant harm to our communities,” said Staff Sgt. Luke Halvorson, in the press release.
In July 2025, officers arrested a person in connection with registering fraudulent vehicle identification numbers on stolen vehicles. Investigators linked more than 20 fraudulent registrations to that person.
Officers executed search warrants between December 2025 and March 2026, recovering several stolen vehicles and gathering evidence supporting allegations of fraud, theft and altered vehicle identification numbers.
Outside the government fleet, investigators linked more than 80 stolen, fraudulently obtained or illegally exported vehicles to the alleged operation. Their estimated value was $6 million.
Officers also seized more than four million illegal cigarettes, valued at more than $1 million on the illicit market. Police put their legitimate value at $3.7 million and the associated unpaid taxes at $400,000.
Five men face charges arising from the investigation.
Mohamed Mark Hajar, 41, of Edmonton, is charged with 11 counts of trafficking in property obtained by crime and eight counts of smuggling under the Customs Act. He was issued a summons to appear in court Nov. 16.
Peter Huy Nguyen, 41, of Edmonton, is charged with possession of stolen property over $5,000. He was released and is scheduled to appear in Alberta Court of Justice in Edmonton on Nov. 16.
Jamal Andy Ghnaim, 34, of St. Albert, is charged with theft over $5,000, fraud over $5,000, obtaining property under a false pretence and trafficking in property obtained by crime.
Ghassan Fayad, 47, and Hamzee Fayad, 41, both of Edmonton, are each charged with possession of unstamped tobacco. Both were released, with court appearances to follow.
The person whose suspected activities first prompted the investigation died before charges could be laid. Investigators did not identify that person, whom they described as having been heavily involved in organized crime in Canada for more than a decade.
Police said they had intended to pursue charges including smuggling, possession and trafficking of stolen property, fraud, money laundering and theft.
“Removing these individuals from the streets will have a positive impact on our communities and deal a significant blow to the criminal enterprises they supported through their activities,” Halvorson said.
Investigative partners included Edmonton Police Service, Canada Border Services Agency, Criminal Intelligence Service Alberta, the B.C. Integrated Municipal Provincial Auto Crime Team and other RCMP units.
Collision Repair reached out to Penny Metal Recycling for comment. No response was received at the time of publication.
The allegations against the accused have not been proven in court.
