Hundreds of decommissioned RCMP vehicles destined for Edmonton scrap yard stolen by criminal network, resold: police
Posted November 4, 2026 3:49 pm.
Hundreds of decommissioned RCMP vehicles destined for salvage at an Edmonton scrap metal facility are believed to have been either resold within Canada or exported overseas.
Alberta RCMP allege a criminal network involved in a vehicle theft and fraud ring was behind the scheme.
Authorities say Edmonton’s Penny Metal Recycling was contracted — by Government of Canada program GC Surplus — to destroy 950 RCMP vehicles starting in the spring of 2025. In November of that year, police say they discovered a criminal network had received hundreds of the vehicles under false pretences.
“It became GC Surplus’ job to find a vendor to dispose of them, and they did that through their normal procurement processes,” explained Staff Sgt. Luke Halvorson of the Alberta RCMP. “It is my understanding that they did have some checks and balances. We’re alleging that some of the perpetrators of this committed fraud to prove they disposed of these vehicles when in fact they didn’t.”
Since April of this year, Penny Metal Recycling is listed as an ineligible and suspended supplier by Public Services and Procurement Canada (PSPC).
During a lengthy investigation, police say several stolen vehicles were recovered. They also say they gathered evidence that the group was involving in widespread vehicle theft, re-vining and reselling.
Excluding the RCMP vehicles, Alberta RCMP say they connected more than 80 stolen or illegally exported vehicles to the criminal network – an estimated value of $6 million.
“In Canada, if we can identify a VIN that we think it was reidentified as, we’ll put out some locates to motor vehicle brands and other police agencies using our databases to try and locate those,” Halvorson said. “If they get exported overseas, it’s pretty much a lost cause.”
As part of the investigation police also say they seized, from a warehouse in Edmonton, more than four million illegal cigarettes valued at $3.7 million.
“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 Halvorson.
Five suspects – four from Edmonton and one from St. Albert – have been arrested and charged. They range in age from 34 to 47. One of the accused was an employee of Penny Metals Recycling.
“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,” said Halvorson.
The investigation by the RCMP auto theft unit into the organization began in June 2024 when a person, who is now dead, was identified as being heavily responsible for driving auto theft in Alberta. Police say they intended to lay dozens of smuggling, fraud and trafficking charges against that person before their death.
“We would have liked to have seen justice for that person and all the harm that he’s caused,” said Halvorson.
Police say there are other participants of the organization “engaged in general criminality” who have not been arrested.
