Contraband cigarettes seized by RCMP

Two men were arrested and more than $8 million in fines and tax penalties assessed after what police are calling “a significant contraband tobacco seizure.”

In a Tuesday press release, Falcon Beach RCMP stated they were called to the weigh station near West Hawk Lake by a Motor Carrier Enforcement officer.

Two males, a 40-year-old driver from Brooks, Alta. and 70-year-old co-driver from Toronto, Ont. were arrested for trafficking contraband tobacco.

In the semi-trailer officers seized 781 cases of contraband tobacco with each case containing 50 cartons.

The total seizure amounted to more than 39,000 cartons or what police say was 7.8 million cigarettes.

The estimated street value ranges from $2.3 million to $3.1 million.

Both suspects were released on appearance notices for an Aug. 7 court date in Steinbach where they will face charges of possession of contraband tobacco under the Excise Act, possession of contraband tobacco for the purpose of distribution under the Criminal Code and possession of unstamped tobacco under the Tax Administration and Miscellaneous Taxes Act.

The Manitoba triple tax penalty is $0.90 per cigarette for a total fine of $7.03 million. An additional federal fine of $0.17 per cigarette adds another $1.3 million to that.

Manitoba Motor Carrier Enforcement Chief Kevin Mantie said cooperation between agencies was critical to the seizure.

“These efforts help protect a fair, lawful market while disrupting organized crime and sending a clear message that illegal activity will not be tolerated,” he said.

The inspection also resulted in five offences for tampering with electronic logging devices and two for major mechanical defects, adding another $15,000 in fines.

Robert Wuskyny, officer in charge of Manitoba RCMP Traffic Services said this seizure shows the importance of working with provincial partners to address illegal tobacco trafficking.

“It’s important for people to know that possessing or selling tobacco products that aren’t properly packaged and stamped is against the law,” he said. “When consumers buy illegal tobacco, they are contributing to criminal activity and potentially funding organized crime.”