A large-scale illegal cannabis production and distribution network has been shut down by the Ontario Provincial Police (OPP) and partners after a 12-month investigation. Several residents of the Niagara Region and Greater Toronto Area (GTA) are facing numerous charges under the Cannabis Act, Controlled Drugs and Substances Act and Criminal Code of Canada.
A criminal enterprise exploiting the Health Canada medical, personal and designate cannabis production regime was uncovered by the Niagara Regional Police Service (NRPS). The operation to divert cannabis authorized to be grown for medical purposes to the illegal market has been dismantled. The Provincial Joint Forces Cannabis Enforcement Team (PJFCET), OPP Organized Crime Enforcement Bureau (OCEB), and the Provincial Asset Forfeiture Unit (PAFU); along with NRPS, Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST) and HSI Toronto, FINTRAC, Canada Revenue Agency (CRA) and Canada Border Services Agency (CBSA) began Project WOOLWICH in August 2019 after several separate investigations presented evidence of this criminal enterprise.
The targets identified in this investigation were involved in the production, wholesale distribution and sale of illegal cannabis. There was an international component to this investigation as investigators seized shipments of illegal cannabis destined for the United States (US) as well as two large shipments of US currency destined for Canada. The accused in this investigation were also responsible for large-volume shipments of illegal cannabis from British Columbia to Ontario.
While the accused are not members of known organized crime groups, they are certainly a criminal enterprise with a large-scale, sophisticated operation.
The Health Canada medical cannabis regime is used for legitimate medical purposes by law abiding citizens. In this investigation, the criminal enterprise exploited the Health Canada registrations to produce or designate someone to produce cannabis for medical purposes by using the regime for criminal purposes and monetary gains.
The OPP’s role is to enforce and investigate criminal cannabis incidents and focus on the apprehension of those who produce, sell, distribute, import/export and use cannabis outside of the parameters of both the provincial and federal legislation.
On August 13, investigators from PJFCET and the OPP including OCEB, OPP Community Street Crime Units (CSCU), PAFU, Biker Enforcement Unit (BEU), Emergency Response Team (ERT), Clandestine Laboratory Investigative Response Team (CLIRT), Urban Search and Rescue and CBRNE Response Team (UCRT); along with the York Regional Police (YRP) Drug Unit, NRPS Special Investigative Service and Street Crime Team, Waterloo Regional Police Service K-9, Hamilton Police Service K-9, the Royal Canadian Mounted Police (RCMP) and the Ontario Fire Marshall executed 26 warrants in numerous locations including Niagara Falls, St. Catharines, Jordan, Simcoe, Markham, Canfield, Welland, Leamington, Scarborough, Richmond Hill and British Columbia. As a result, investigators have arrested eight (8) persons for numerous charges including distribution, production and sale of cannabis under the Cannabis Act, as well as charges under the Controlled Drugs and Substances Act and the Criminal Code of Canada. The investigation is ongoing and a complete list with names and associated charges will be released in the coming days. The accused have been released, and will appear at a St. Catharines Ontario Court of Justice on September 17, 2020.
The results of this investigation include the seizure/restraint of:
· 101,049 illegal cannabis plants;
· 1,921 pounds of illegal cannabis bud;
· 21 pounds of illegal cannabis shatter;
· Two (2) ounces of cocaine;
· Three (3) pounds of illegal cannabis hash;
· 22 pounds of illegal cannabis oil;
· Hundreds of illegal cannabis vape pens;
· Six (6) firearms including two .22 pistols, one 9mm Glock, one AR 15 assault rifle and two shotguns;
· Grow equipment worth more than $1 million;
· Numerous high-end jewellery items;
· Four vehicles;
· More than $2.5 million in Canadian currency;
· $580,828 in US currency; and
· $379,383 in Chinese and South Korean currency.
The total duty loss for the illegal cannabis seized is estimated at more than $42 million.
QUOTES
“The illegal cannabis trade is dominated by organized crime and they often change methods of transportation, production and distribution. This criminal enterprise may not be a known organized crime group, but they are people with power, influence and money and are extremely opportunistic. Criminals are exploiting the Health Canada medical cannabis personal and designate production regime by diverting the cannabis to the illegal market and are profiting greatly from this illegal activity.” – Detective Inspector Jim Walker, OPP Organized Crime Enforcement Bureau, Provincial Joint Forces Cannabis Enforcement Team
“The success of this operation is the result of strong law enforcement partnerships and a commitment to secure our shared border from criminal exploitation, “said Kevin Kelly, Special Agent in Charge of HSI Buffalo. “HSI Buffalo’s Border Enforcement Task Force, also known as BEST, allows for critical multi-agency collaboration. Through BEST, HSI Buffalo is proud to work with our Canadian partners in combatting transnational criminal networks that threaten our international region.”
“Cross-border law enforcement collaboration between the United States and Canada is extremely vital to dismantling transnational criminal organizations exploiting our shared border to conduct their illicit smuggling activity. This joint investigation is an excellent example of the ongoing collaboration between the Homeland Security Investigations Buffalo and Toronto offices along with the Ontario Provincial Police and Niagara Regional Police Service as it clearly highlights that the critical sharing of information can successfully lead to the dismantlement of criminal organizations in both countries.” Michael Buckley, Attaché, Homeland Security Investigations, U.S. Embassy Ottawa
LEARN MORE
The only way to purchase legal cannabis in Ontario is through the online Ontario Cannabis Store (OCS) or in-person at an Alcohol and Gaming Commission of Ontario (AGCO)-authorized private retailer. Purchasing legal cannabis is the only way to ensure the cannabis has met the health and safety standards set out by the Government of Canada and Ontario. Illegal cannabis often does not match what is being advertised, recent testing of illegal cannabis products indicated lower than advertised THC levels and the use of banned pesticides. The purchase of cannabis from anywhere other than the online OCS or an authorized private retailer could lead to a fine of up to $100,000 and/or imprisonment for up to one year.
The PJFCET is responsible for enforcing the cannabis laws and investigating criminal enterprises that are exploiting or abusing the legal cannabis market. See attachment for backgrounder on the PJFCET.
Author: Pete Fisher
Has been a photojournalist for over 30-years and have been honoured to win numerous awards for photography and writing over the years. Best selling author for the book Highway of Heroes - True Patriot Love
