The Province

Money-laundering case now in hands of Crown

Eby calls inability to prosecute major drug and gambling offences a crisis

- GORDON HOEKSTRA ghoekstra@postmedia.comtwitter. com/gordon_hoekstra

A major illegal gambling and money-laundering investigat­ion by B.C.’s anti-gang task force that resulted in nine arrests 18 months ago is now in the hands of Crown counsel.

The Crown lawyers will determine whether to lay charges after police say they uncovered a network believed to be connected to illegal gambling houses and money laundering.

The investigat­ion, led by a group within the Combined Forces Special Enforcemen­t Unit of B.C., also alleged the Lower Mainland-based organized crime group had operations that extended to China and other countries.

Dan McLaughlin, the B.C. Prosecutio­n Service’s communicat­ions counsel, said the first investigat­ion file materials were received by the Crown for assessment on Sept. 27, 2018.

“That process is currently underway. We do not have a time line for the completion of the assessment,” said McLaughlin.

The arrests were announced at a news conference in June 2017.

RCMP Sgt. Brenda Winpenny, a spokeswoma­n for the Combined Forces Special Enforcemen­t Unit, said this week there have been no further arrests and the investigat­ion is complete.

There was a huge volume of materials turned over to Crown because of the complex nature of the investigat­ion, said Winpenny.

The investigat­ion was led by the CFSEU’s joint illegal gambling investigat­ion team, which includes police and investigat­ors from the B.C. government’s gambling policy and enforcemen­t branch.

At the height of the investigat­ion, about 200 people were working on the case.

Officials with B.C.’s Attorney General and Solicitor General offices refused this week to comment on the case.

In May 2016, the Combined Forces Special Enforcemen­t Unit started a probe into criminal organizati­on allegedly operating illegal gambling houses, loan sharking, carrying out money laundering for drug trafficker­s, kidnapping­s, extortions and other violent acts.

“During the investigat­ion, it was apparent there were multiple roles filled by different people (who) enabled or facilitate­d the organizati­on in laundering large amounts of money through casinos,” CFSEU assistant commission­er Kevin Hackett said in 2017 at the announceme­nt of the arrests.

Hackett pegged the amount of money laundered into the “millions.” He would not name any of the casinos, but said they are all in the Lower Mainland.

A search of six homes led to the seizure of cash, drug parapherna­lia, cellphones, computers, and a number of luxury vehicles, including one that had a sophistica­ted hidden compartmen­t. Some of the items seized — stacks of bills in clear plastic bags, scales and bill-counters — were on display at the news conference.

Last year, a separate RCMP nvestigati­on dubbed E-Pirate resulted in criminal charges being laid against an illegal money services business, Silver Internatio­nal, and a Richmond couple. But the charges were stayed in November without explanatio­n.

B.C.’s civil forfeiture office is now seeking to seize a $2.3-million Richmond house, $2 million in cash, River Rock Casino chips and gift cards as the proceeds of crime based on the E-Pirate investigat­ion, alleging money was laundered for customers that included drug trafficker­s importing cocaine from Mexico. The forfeiture suit alleges that as much as $220 million was laundered in a year.

B.C. Attorney General David Eby has said he was incredibly disappoint­ed the criminal charges were stayed in the Silver Internatio­nal base and that the inability to prosecute these cases is a crisis.

 ?? — JASON PAYNE/FILES ?? Kevin Hackett, assistant commission­er of the Combined Forces Special Enforcemen­t Unit British Columbia, has pegged the amount of money laundered by B.C. casinos into the ‘millions.’ Hackett would not name any of the casinos, but he said they are all in the Lower Mainland.
— JASON PAYNE/FILES Kevin Hackett, assistant commission­er of the Combined Forces Special Enforcemen­t Unit British Columbia, has pegged the amount of money laundered by B.C. casinos into the ‘millions.’ Hackett would not name any of the casinos, but he said they are all in the Lower Mainland.

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