The AGLC says it has seized millions of dollars worth of contraband tobacco through the first few months of 2024. (Photo: AGLC)

By David Opinko

Over $25 million in contraband tobacco seized in Alberta so far this year

May 16, 2024 | 9:46 AM

Officials say a series of investigations into contraband tobacco has lead to several major seizures in 2024, including two that are among the largest in the province’s history.

The Alberta Gaming Liquor and Cannabis (AGLC) says, between six separate incidents since the start of this year, they have confiscated 32,222,080 illegal cigarettes.

They have an estimated retail value of $25.5 million and represent $9.38 million in lost provincial tax revenue.

The largest seizure occurred in Edmonton on April 22. The AGLC Tobacco Enforcement Unit searched a commercial property in the city’s south side, seizing 22,260,000 cigarettes, or 111,300 cartons.

AGL Vice President of Regulatory Services Gary Peck says, “These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue.”

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“AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta,” Peck added.

As outlined in a media release from the AGLC, listed below are the six biggest seizures of contraband tobacco in Alberta so far this year:

April 22, 2024 (Edmonton)

• Following a three-month investigation, AGLC Tobacco Enforcement Unit were granted a search warrant to a south Edmonton commercial property. 60 pallets (22,260,000 cigarettes or 111,300 cartons) of contraband tobacco were seized
• The seized contraband tobacco has a combined total of $6.6 million in provincial lost tax revenue and a retail loss of $18 million
• The matter is still under investigation and charges are pending

April 11, 2024 (Lethbridge)

• Search warrants were executed on a storage unit and a residence in Lethbridge
• 252,240 contraband cigarettes (1,261 cartons) of a retail value of $208,098 and more than $25,000 in Canadian currency was seized resulting in charges. The total provincial tax lost was $75,560
• Vendon Sharp of Lethbridge was charged with possession of unstamped tobacco and fraud over $5,000

March 20, 2024 (Calgary)

• Following a two-week investigation, search warrants were executed on a residence and the Simple Convenience store in Calgary
• A total of 14,780 contraband cigarettes (74 cartons) with a retail value of $12,210 and 46,500 grams of shisha were seized. The potential provincial lost tax revenue was $23,621
• Angosom Beraki of Calgary was charged with section 121.1 CC, possession of unstamped tobacco and fraud over $5,000.

February 16, 2024 (Calgary)

• Three individuals were observed in possession and transferring 80,000 contraband cigarettes (400 cartons) with a retail value of $66,000
• The potential provincial lost tax revenue was $22,000
• Matthew Krebs of Calgary, Jarit McCallum of Saskatoon and Chantel Dombrowsky of Saskatoon were each charged with one count of possession of unstamped tobacco and one count of fraud over $5,000

January 24, 2024 (Edmonton area)

• Following a four-month investigation, an approximate retail value of $7 million in contraband tobacco products was seized by AGLC’s Tobacco Enforcement Unit. A total of 8.7 million cigarettes and 15,000 grams of contraband shisha tobacco was seized
• The seizure took place at a rural property and two residential properties all located in Edmonton. Investigators were acting on information that Alberta residents were involved in the trafficking of contraband tobacco products
• The seized contraband tobacco has a combined total of $2.4 million in potential provincial lost tax revenue
• The matter is still under investigation and charges are pending

January 5, 2024 (Calgary)

• After a month-long investigation, search warrants were executed at a residence, vehicles and the TTK Convenience store in Calgary
• A total of 915,060 contraband cigarettes with a retail value of $251,642; 19,000 grams of shisha; 36 ASP batons; and 18 cannisters of bear spray were seized
• The potential provincial lost tax revenue was $259,480
• Teweldebrhan Kidane of Calgary and Feven Tesfay of Calgary were charged with possession of unstamped tobacco and fraud over $5,000

Minister of Service Alberta and Red Tape Reduction Dale Nally says contraband tobacco hurts law-abiding businesses that follow the rules, and costs Albertans million of dollars each year in lost tax revenues.

“Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law,” says Nally.

The AGLC adds illegally-manufactured products could also pose public health and safety risks as they lack regulatory controls and inspections.

Anyone who suspects illegal tobacco production, packaging, and/or trafficking in Alberta are asked to call the AGLC’s Tobacco Enforcement Unit at 1-800-577-2522. Tips can also be submitted anonymously to Crime Stoppers at 1-800-222-8477, online at P3Tips.com, or by using the “P3 Tips” mobile app.