Over $3 Million in Illicit Cannabis Proceeds Laundered Through Ontario Casinos: RCMP

The RCMP logo is seen outside Royal Canadian Mounted Police "E" Division Headquarters, in Surrey, B.C., on April 13, 2018. The Canadian Press/Darryl Dyck

An RCMP investigation found over $3 million of illegal cannabis proceeds was laundered through casinos in Ontario, and police have charged five individuals while seizing more than $24 million worth of cannabis.

Nearly 30,000 cannabis plants—which yield up to 18,781 pounds of dried cannabis—as well as an additional 7,926 pounds of dried cannabis were seized, which have a total value of more than $24 million, the Hamilton-Niagara RCMP said in a statement on July 5.

Police also seized about CAD $1 million in cash during their investigation.

The bust was part of an investigation that began in 2017, which initially focused on gathering intelligence about a possible money-laundering scheme that was operating through casinos in the Greater Toronto Area and Niagara regions. The probe revealed the laundering of over $3 million in proceeds made through the illegal sale of over 8,000 pounds of cannabis.

In the investigation, search warrants were executed on five residences and six large-scale marijuana grow operations, police said. In addition, one farm and three GTA residences have been restrained.

Five individuals were charged as a result of the probe, including Zu Wen Chang, Lin Li, Bo Hai Chen, En Quan Chen, and Jian Hua Tao.

Among the dozens of charges, the accused each face one count of conspiracy to sell cannabis, conspiracy to produce cannabis, possession for the purpose of selling, cannabis cultivation, and possession of property obtained by crime.

Lin Li and Zu Wen Chang have also been charged with laundering the proceeds of crime and selling cannabis.

“This investigation, conducted with the assistance of the OPP and FINTRAC, serves as a great example of how a coordinated enforcement effort can contribute to safer communities by disrupting the illegal drug trade and confiscating money laundering proceeds,” said Superintendent Jeff Cooper, the officer in charge of district command.

The Alcohol and Gaming Commission of Ontario (AGCO), which is responsible for regulating the alcohol, gaming, horse racing, and private cannabis retail sectors in the province, said it has been working closely with OPP’s Investigation and Enforcement Bureau (IEB) to provide information and resources throughout the RCMP the investigation.

In a July 5 statement, the AGCO said that with the conclusion of the RCMP investigation, it will also “complete a regulatory review of the regulated gaming entities to assess the effectiveness of their controls in meeting their obligations under the Gaming Control Act, its Regulations and the Registrar’s Standards for Gaming.”

The ACGO “will continue to support all stakeholders in our shared goal of effectively detecting and safeguarding against criminal activities in casinos,” said Alison Jevons, chief superintendent of the IEB.

The RCMP has investigated several major cannabis operations in recent years. In November 2020, RCMP in Merritt, British Columbia, dismantled a massive illegal grow-op with more than 100,000 cannabis plants, which yields an estimated $8 million.

In July 2021, the RCMP in Surrey, Ontario, also busted an illegal grow-op with roughly 7,700 cannabis plants.