TORONTO

Investigators have smashed a massive international crime ring centred around a gypsy cell that recruited people to come to Ontario from Romania, according to Durham Regional Police.

Police arrested 34 people and laid 263 charges in the largest investigation of its kind in Durham Region, east of Toronto.

"This has ballooned from one family. The ring would recruit to Canada and they would claim refugee status," Det.-Sgt. Cathy Bawden said.

In the fall 2011, two officers in Oshawa, Ont., noticed criminals were committing distraction-style thefts and frauds.

Thieves would target jewelry stores, convenience outlets and even senior citizens, police said.

As one person distracted victims, their cohorts would steal valuables and leave the scene. Men, women and their children took part, tucking stolen items inside long skirts with inside panel compartments.

The gypsy cell enlisted people from Romania for the crime ring and investigators have identified more than 400 people who were associated with the criminal organization.

"They are brought over for a better life but there is a price to pay on arrival," Bawden added.

Once in Canada, the newcomers would apply for social assistance, mostly in Toronto.

Investigators are working with different levels of government to identify any fraudulent use of social services.

With the aid of identities provided by police, however, Toronto social services officials have calculated the individuals have received more than $2 million from various programs since January.

Investigators have seized $85,000 in cash and stolen merchandise, and identified more than $1 million in suspicious wire transactions to foreign locations.

The investigation focused on a family living in Pickering, Ont., and an associate in Toronto.

Police don't know how many people were victimized by the crime ring.

Durham investigators were assisted by the Canadian Border Services Agency, the RCMP, Toronto Police, OPP, FBI, Homeland Security, U.S. Customs and Interpol and other police agencies.

Those arrested include Dinarca Caldaras, 38, formerly of Denby Dr., Pickering, who is charged with instructing commission of an offence for a criminal organization, credit card theft, fraud and other offences.

Provincewide arrest warrants have been issued for her husband, Ovidiu Caldaras, 42, and her son, Robert, 20. Investigators believe both have fled to Germany.

They're wanted on charges of participating in a criminal organization and other offences.

Claudiu Unguru, 37, of Toronto, is charged with participating in a criminal organization, identity theft, fraud and other crimes.

kevin.connor@sunmedia.ca