PHILADELPHIA -- Philadelphia police said they have arrested four people in connection with an illegal auto tag ring that was using phony names or other people's identities to register vehicles.

---

Images | Video

---

The scheme may have put thousands of vehicles with fraudulent registrations out on the streets and highways, police said.

According to authorities, the investigation started with a stolen car case more than a year ago.

That led Philadelphia police to ask Pennsylvania State Police to join a probe into the records of Exotic Image Services, located at Second Street and Lehigh Avenue in the Kensington section of the city.

The allegation was that Exotic was providing vehicle registrations through Bassett's Auto Registration and Licensing -- a North Philadelphia fixture for many years at Broad and Poplar streets, while it was under previous ownership -- to people who had either stolen someone else's identity or simply made up a name and an address.

"So these individuals who have this, obviously, have something to hide," Capt. David Young, of the Pennsylvania State Police said.

Young said of the people who obtained these illegal registrations, "Now it could be that they just want to be able to park in illegal parking zones or they don't want to get insurance? They don't care if they drive through traffic lights. Is it more sinister than that? Are these individuals out robbing banks or doing other crimes?"

Even if witnesses recorded the license plate number or the type of car involved in the violation, the actual drivers are safe and can't be found, Young said, explaining that the scheme "gives them anonymity."

They could be illegal immigrants or terrorists, NBC 10's Mike Strug reported.

Charged with forgery, identity theft and other crimes are the former owner of Bassett's, 48-year-old Andrew Shapiro, one of his employees, 35-year-old Roberta Hagins, and two others: Elaine Moldanado, 45, and Jorge Oyola, 39, who were involved with Exotic and another licensing company.

The current owners of Bassett's have not been implicated in any way, Strug reported.

Police said records show almost 300 vehicles were illegally registered in the last few months of the scheme.

Each of the four suspects has been arraigned in Dauphin County, where the Pennsylvania Department of Transportation is headquartered, and is being held in lieu of $50,000 bail, Strug reported.