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I don't know if swapping Vins is illegal in Canada, but it is not in SC. If the person legally owns both cars you can do what ever you want to them... including swapping vins from one to the other.
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I don't think your statement is entirely true.... please follow this link
VIN Fraud
Also, it appears that in 2005 Canada was trying to put more teeth into its laws concerning this. Not sure what the outcome was?
Canadian VIN Fraid Info