Nearly 8 million cigarettes worth $3.1M seized

As much as $3.1 million in illegal cigarettes was seized and two men were arrested last month during one of the largest busts of its kind in Manitoba.

Cartons containing 7.8 million cigarettes were found inside a semi-trailer when it was inspected by an officer from the provincial government’s motor carrier enforcement unit at the West Hawk Lake weigh station May 29, said RCMP, who took over the investigation.

“It ranks among the larger contraband tobacco seizures we’ve seen in Manitoba in recent years,” motor carrier enforcement Chief Kevin Mantie said Tuesday.

“While not necessarily the single largest, it is substantial. It reflects the scale of the illicit market and the level of organized activity behind it.”

Sales of untaxed and unregulated cigarettes fund organized crime networks involved in drugs, weapons and money laundering, he noted.

The seizure demonstrates the demand for contraband cigarettes and the effectiveness of targeted investigations, Mantie said.

Rick Barnum, executive director of the National Coalition Against Contraband Tobacco, said the bust in eastern Manitoba will impact organized crime.

“The information we have is the extreme west and east coasts are absolutely targeted by organized crime to increase amount of contraband tobacco they are selling in those areas,” said Barnum, a former police officer in Ontario.

He said a previous RCMP study found contraband tobacco is among the main illicit products sold by about 145 organized crime groups.

“These seizures are really important because they are going right to the heart of organized crime and what they’re trying to do,” Barnum said.

“They destabilize our communities and the safety in our communities by selling all kinds of illicit products, and their money goes into a pool. It could be spent on fentanyl, cocaine or trafficking young ladies.”

Mantie said routine commercial vehicle enforcement work led to the discovery within the back of a 16-metre (53-foot) trailer.

“Officers were conducting standard compliance and investigative activities when they identified indicators consistent with contraband tobacco trafficking,” he said.

Investigators believe the cigarettes were intended for distribution within Alberta, but they continue to explore all intended destinations for individual sales.

“Evidence gathered during the investigation indicates they were meant for the local illicit market,” Mantie said.

RCMP officers arrested the semi-truck’s occupants — a 40-year-old driver from Brooks, Alta., and a 70-year-old man from Toronto who was a co-driver — for allegedly trafficking contraband tobacco.

They were released to face charges at an Aug. 7 court date in Steinbach.

The pair could face a provincial triple tax fine of $7 million and a federal excise tax penalty of $1.3 million, RCMP said in a news release.

The RCMP traffic services unit continues to investigate. Mantie said the inspection also resulted in five offences for tampering with the vehicle’s electronic logging devices and two for major mechanical defects, leading to about $15,000 in fines.

Officials said sales of illegal cigarettes, which aren’t properly packaged or stamped, avoid provincial taxes and health regulations.

“Contraband cigarettes undermine public health efforts. They bypass health warnings, age‑verification requirements, and regulations designed to reduce smoking rates,” Mantie said.

He said Manitoba loses millions of dollars in tax revenue annually to illicit tobacco — money that would otherwise go toward health care, education and community services.

Legitimate tobacco retailers face an uneven playing field because they cannot compete with products sold illegally at a fraction of the price, Mantie said.

chris.kitching@freepress.mb.ca