Former Diamond Estates CEO charged in contraband wine fraud

The former CEO of Diamond Estates Wines and Spirits is facing tax fraud charges in Montreal involving black market wine.

Murray Marshall, 58, was arrested Tuesday as part of a police sweep that included 10 other people.

Montreal Police allege the 11 individuals imported and sold contraband wine. Police said the wine was imported from Europe, re-bottled and sold as a name brand in Quebec and part of Ontario.

The fraud allegedly involved avoiding $ 14 million in taxes, and happened between 2010 and 2014.

The Montreal Gazette reported Marshall is suspected of being one of the ringleaders and was detained in Oakville, appearing via video in Quebec court.

It also reported part of the Project Malbec investigation involves the First Nations Winery, in Kahnawake, Que.

Diamond Estates Wines, based in Niagara-on-the-Lake, issued a statement Wednesday emphasizing Marshall has not been an employee of the company since his employment was terminated in May 2014.

The company said it is aware of the fraud investigation surrounding the First Nations Winery and has been co-operating fully with authorities.

“Diamond Estates is compliant with, and fully respects, all federal and provincial laws. Diamond Estates has not been implicated in any of the alleged criminal activity,” the statement read.

The company said it ceased doing business with First Nations Winery in December 2014, upon learning of a fraud investigation.

Montreal Police said the arrests came after the seizure of 89,000 litres of contraband wine in December and January and an investigation that included 32 search warrants.

They said they were aided by Halton Regional Police in Oakville and Ontario Provincial Police.

Charges include fraud, complicity in fraud, trademark counterfeiting, receiving stolen goods and recycling the proceeds of crime.

Also charged were Carle Adub, 43, Zache Audette-Hall, 27, Gaetan Breton, 57, Vincenzo Forgetta, 45, Luca Gaspari, 52, Spyros Kapsakis, 65, Liette Labbe, 55, Floyd Lahache, 57, Giuseppe Porcelli, 58, Paolo Simone, 49 and Robert Whitebean, 43.

Police said more arrests are pending.

Diamond Estates is compliant with, and

fully respects, all federal and provincial laws. Diamond Estates has not been implicated in any of the alleged

criminal activity.”