Hamilton police have arrested four people who they say are involved in exporting stolen vehicles out of Canada.

Police say rental car companies across Southern Ontario were targeted, with people using fraudulent documents to rent the vehicles, which they would never return, or they would clone the car keys, so they could steal the vehicles later on.

Dubbed "project seagull," police launched a four month investigation with the Insurance Bureau of Canada, Ontario Motor Vehicle Industry Council and the Canadian Border Services Agency into the exportation of stolen vehicles.

Police started investigating a Hamilton man in August 2019, who was reportedly "heavily involved in organized auto theft" and exportation.

They say the auto theft ring operated out of Hamilton, involved local auto sales businesses, and has been involved in 39 vehicle thefts with a value of $1.6 million.

To date, police say they have recovered seven vehicles bound for Iraq and believe "many more have been shipped."

During their search of local businesses and residences, Hamilton police seized 12 stolen vehicles, vehicle parts, cash, and stolen Mexican passports. (Hamilton Police Services)

On Dec. 5, police executed warrants on six local businesses and three residences. At a quonset hut on Parkdale Ave. N, they seized 12 stolen vehicles.

Police say the suspects targeted higher-end vehicles, like Audi, Mercedes, and fully-loaded pick-up trucks. The majority were from rental car companies, police say, but some were "personal vehicles."

Police also seized vehicle parts, cash, gold jewellery, car keys and fobs, as well as fraudulent vehicle identification numbers, shipping documents and stolen Mexican passports.

Police estimate that the ring had been operating for a couple of years.

Four people from Hamilton — three men and a woman — have been arrested and face several charges.

One suspect faces 28 counts of possession of property obtained by crime and 12 counts of trafficking property obtained by crime.

Among other charges, the three men have been charged with participation in activities of a criminal organization.

All four people have been released and will appear in court in January.

At a media event, a spokesperson for the Insurance Bureau of Canada said that auto thefts cost Canadians around $1 billion a year, with a quarter of that happening in Southern Ontario.

Police say the investigation is ongoing and further charges may be pending. Anyone with information is asked to contact Detective Sgt. Andrea Torrie at 905-546-2991 or Crime Stoppers.