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Criminal Markets
Illicit Drugs
Illicit drugs continue to be the primary criminal market in Canada in terms of estimated revenue and the number of participating organized crime groups. These drugs are distributed across the country by criminal groups operating at all levels of capability and scope. Typically, it is the more sophisticated crime groups who are active in operations such as wholesale distribution, importation and domestic production. Highlights of select illicit drugs are featured in this section and provide a general overview of how these substances are positioned in the marketplace.
Illicit Drugs and Firearms Seizure in Vancouver
The Vancouver Police Department conducted an investigation, dubbed Project Rebellion, into crime groups based in the southern portion of the city. These groups were involved in the trafficking of controlled substances such as cocaine and heroin, firearms trafficking as well as crimes of violence such as assaults and drive by shootings.
Based on police intelligence, Project Rebellion targeted a criminal group that ran street level trafficking operations 24 hours a day, seven days a week in the southern part of Vancouver as well as in nearby municipalities. Informant reports and surveillance also indicated that the group possessed firearms and that its members wished to acquire additional firearms.
Undercover operations were used to purchase controlled substances as well as to attempt to purchase firearms from members of the criminal group. The police operation also exposed group members purchasing assault rifles and pistols from an undercover operator. Warrants were executed resulting in the seizure of pistols, ammunition, assault rifles, a shotgun and controlled substances. In March 2009, the targets were intercepted and are being held in custody pending trial on firearms and Controlled Drug and Substances Act charges.Project Tandem target illicit trafficking
Project Tandem was a multi-jurisdictional police investigation led by the Ontario Biker Enforcement Unit and supported by municipal, provincial, and federal law enforcement agencies. The investigation focused on illegal importing/trafficking in cocaine, hashish, illegal distribution of firearms and proceeds of crime activities of full-patch members of the Hells Angels Motorcycle Club in Oshawa. It subsequently spread to include select Hells Angels Motorcycle Club members from its East Toronto, Keswick, Niagara, Nomads, Simcoe County, and Windsor chapters.
The investigations concluded on September 28, 2006 with the arrest of 24 persons, including 13 full patch members of the Hells Angels Motorcycle Club and 11 prospects and associates. On September 26, 2008 the remaining four accused, three of which were full patch and senior members of various Hells Angels Motorcycle Club chapters in Ontario, entered guilty pleas to a number of drug and proceeds charges.
The Superior Court of Justice found the Hells Angels Motorcycle Club to be a national criminal organization and gave cumulative sentences totaling approximately 93 years in jail, with forfeiture of approximately $644,895 in cash and seven vehicles.
A senior counsel with the Public Prosecution Service of Canada's Anti-Organized Crime Unit said the results achieved are the product of effective and early partnerships with an investigative team dedicated to excellence and all the best practices that came together under the Biker Enforcement Unit.
"The Toronto Police Service is committed to operations that allow us to be deliberate and precise with our actions and include a reliance on neighbouring law enforcement agencies for support. These projects result in more arrests, more gun and drug seizures and safer streets." Toronto Police Service, Chief of Police William Blair
Cocaine
Cocaine continues to be a major illicit drug imported to Canada and has become an attractive option for organized crime involvement. Cocaine is largely produced in Colombia, Peru, and Bolivia and from these source countries finds its way to transit countries including the US, Guyana, the Dominican Republic, and Mexico. The US is the primary transit country for cocaine entering Canada where it is typically smuggled through highway ports of entry concealed in commercial and personal vehicles.
Some organized crime groups based in western Canada have shifted their cocaine smuggling operations from the Pacific Region to ports of entry in Ontario and Quebec – possibly in response to successful law enforcement actions at the BC-Washington border.
Heroin
In Canada, consumer demand for heroin remains low but consistent in comparison with demand for most other illicit drugs. Organized crime groups, mainly in BC and Ontario, are involved in the heroin market, importing heroin primarily from Southwest Asia and Latin America. Heroin enters Canada primarily through marine and air ports concealed either within commercial cargo or carried by individuals within their baggage or on their person.
Illicit drug operation dismantled
From October 2006 to December 2007, the Combined Forces Special Enforcement Unit – British Columbia (CFSEU-BC) led an investigation into crime groups dealing in illicit drugs. Project E-Paragon targeted groups based in British Columbia but whose operations also spread into other countries.
Within Canada, CFSEU-BC partner agencies included the Canada Border Services Agency, Combined Forces Special Enforcement Unit –Toronto (Project O-Lorry), Vancouver Police Department, Lower Mainland RCMP Detachments, RCMP Greater Vancouver Drug Section and the BC Integrated Gang Task Force. CFSEU-BC was also assisted by international law enforcement agencies, notably the US Drug Enforcement Administration and the Australian Federal Police.
Intelligence gathered by CFSEU-BC during the investigation led to seizures of drugs, money, other assets and firearms in several countries and led to the arrest of approximately 100 targets during the investigation. Over the course of E-Paragon, 50 targets were intercepted on 193 target telephones totaling over 255,000 calls in North America. Seizures during Paragon include 890 kilograms of cocaine, 121 kilograms of methamphetamine, 83 kilograms of MDMA, 1,750 pounds of ephedrine, 100 gallons of MDP2P, 11.5 units of heroin, 10,000 pounds of Marihuana, three clandestine labs, 2.4 million dollars in cash and six properties in Vancouver and Toronto.
In December 2008, the primary target of E-Paragon in Canada was sentenced to twenty years. Charges against other persons in Canada are still pending trial, and persons arrested in other countries in relation to this investigation received significant sentences.
Marihuana
The market for marihuana is one of the most significant illicit drug markets, both globally and in Canada. The domestic market for cannabis is almost entirely supplied by Canadian produced marihuana. The inter-provincial movement of marihuana stems from three main production hubs in BC, Ontario, and Quebec and is used to meet Canadian demand and to transport large quantities of marihuana to areas along the Canada-US border for smuggling into American markets.
"Criminal organizations have no defined boundaries when it comes to conducting illicit activities. Consequently, the inter-connectivity between criminalized gang members presently under our jurisdiction and their affiliates in the community remains a priority."
Correctional Service of Canada, Director of Preventive Security & Intelligence, Pierre Sangollo
Pharmaceutical Opiates
The illicit distribution of pharmaceutical opiates is a small but persistent market, particularly in Ontario and the Atlantic region. Illegal distribution is often a secondary criminal activity for organized crime groups. In part, the heroin market is being replaced by prescription opiates as opiates provide a similar type of "high" or sensation. Organized crime groups in Canada obtain their illicit pharmaceutical opiates by various means with the majority exploiting or relying on corrupt doctors. Internet pharmacies are also targeted and there is some indication that pharmaceuticals smuggled into Canada from other countries may be contributing to the supply of pharmaceuticals to the illicit market.
Hells angels hit hard in eastern Canada
The Sûreté du Québec spearheaded a major joint policing effort involving municipal, provincial and federal police agencies in Quebec. This resulted in effectively dismantling the Hells Angels' infrastructure and disrupting their capacity to use communities in the Eastern region to carry out their criminal activities.
The police investigation, dubbed Operation SHARQC (Stratégie Hells Angels Région Québec), was created to prosecute all criminal activity associated to the Hells Angels of Quebec, slow down its infiltration into the legal economy, and recover tax losses generated with illegal trade. In pursuit of these objectives, charges were laid against accused individuals on April 15, 2009 that included gangsterism, trafficking in a controlled substance, conspiracy to commit murder, and murder. Of all Hells Angels' members and candidates, only two remain that are not currently in prison. Arrests also took place in Ontario, New Brunswick, the Dominican Republic and France.
The three-year long investigation involved over 300 police officers who collected information and intelligence. More than 1,200 officers from about 20 municipal, provincial and federal police forces executed arrest and search warrants that resulted in the seizure of $5 million in cash, dozens of kilograms of cocaine, marihuana and hashish, and thousands of pills. There were a total of 156 targets of Operation SHARQC comprised of 111 full-patch members, four prospective candidates, one sympathizer, 11 retired members and 29 family relations.
"More and more, law enforcement operations and activities to combat organized crime are being conducted in a renewed spirit of partnership, overtaking an approach that is committed to joint resources to one that is based on integrating intelligence."
Sûreté du Québec, Director General Richard Deschesnes
Synthetics
Ecstasy
Canadian-produced ecstasy supplies the domestic market and Canada remains one of the top producers of ecstasy to the global illicit drug market. Sophisticated organized crime groups in Canada continue to conduct large-scale production and distribution operations. Precursor chemicals for the production of ecstasy are smuggled into Canada from source countries such as China and India on a regular basis. The substantial production of ecstasy in Canada has directly affected the domestic market, resulting in a considerable decline in price. Ecstasy is readily available in most Canadian provinces.
The chemical profile of ecstasy has changed significantly in recent years, shifting from "pure" MDMA (3,4-methylenedioxy-N-methylamphetamine) content to a cocktail composition that contains decreased quantities of MDMA and increased quantities of several chemical fillers. This shift is largely profit driven as the use of chemical fillers is cheaper than MDMA. The varying composition of ecstasy can pose an additional risk to consumers expecting pure MDMA content.
Methamphetamine
While domestic use of methamphetamine has shown no increase, production has risen to meet expanding international market demands. "Super labs" capable of producing large amounts of methamphetamine cater to international wholesale distributors with export to countries including Australia and New Zealand.
A number of sophisticated crime groups in BC have established themselves as the dominant illegal importers of precursor materials for the manufacture of illicit synthetic drugs. These groups maintain extensive international networks to facilitate the importation of precursor, as well as the international distribution of methamphetamine. Methamphetamine continues to be used as filler in Canadian-produced ecstasy as it is cheaper to produce and acts as a filler to increase weight and profit margin.
Criminal Market: Illicit Firearms
