-Caveat Lector-
Criminal Intelligence Service Canada - 2001
ASIAN-BASED ORGANIZED CRIME
Highlights
Asian-based organized crime groups continue to be extensively involved in trafficking
cocaine, the production, trafficking and exporting of marijuana, the importation and
distribution of Southeast Asian heroin and have diversified into the distribution of
ecstasy.
AOC groups continue to be involved in large-scale illegal migrant smuggling
operations, using Canada as both a destination country and as a conduit to the United
States.
AOC groups continue to expand their association with other organized crime groups and
criminal gangs at the regional, national and international levels.
AOC groups continue to be primarily based in the urban centres of Vancouver, Calgary,
Edmonton, Toronto and Montreal, but smaller cities and rural areas are increasingly
used to conduct their criminal activities.
The structure of AOC groups includes criminal youth and members of street gangs. This
membership is fluid with members often conducting several different criminal
enterprises simultaneously with members of other AOC groups.
Across Canada, AOC groups continue to be involved in the large-scale importation and
trafficking of drugs, particularly heroin and cocaine, the cultivation, trafficking
and exporting of marijuana, extortion, home invasions, kidnaping, illegal migrant
smuggling operations31, theft, shoplifting, prostitution, assaults, illegal gambling,
loan-sharking, and the production and distribution of counterfeit currency, software,
manufactured goods and credit and debit cards. The groups are also involved in the
laundering of criminal proceeds and the investment of laundered money into legitimate
businesses.
AOC groups in British Columbia continue to associate with other organized crime
groups, particularly youth and street gangs. In the Lower Mainland, high schools with
large English-as-a-second-language populations are often targeted by AOC groups as a
labour pool for a variety of lower-level criminal activities, as a source of recruits
and as insulation to shield senior members from the attentions of rival gangs or law
enforcement.32
There continues to be gang violence in the Lower Mainland, particularly between
Vietnamese gangs. In 1999 and 2000 there were a number of incidents and homicides
involving Vietnamese gangs.33
The smuggling of humans by air and sea continues to be an issue of concern in the
province. In April 2001, 12 female and 24 male illegal Chinese migrants were found in
two soft-topped containers aboard a cargo ship in Vancouver which was destined for
Long Beach, California. The two containers were positioned under two other layers of
containers. Earlier in the month, 23 illegal Chinese migrants were discovered in two
containers in Long Beach. The migrants told officials they paid between $45,000 and
$55,000 US to organized crime groups for the voyage. All but one of the 36 illegal
migrants who arrived in B.C. have applied for refugee status.34
Deportations of the 599 illegal Chinese migrants who arrived in 1999 off the coast of
B.C. on four decrepit ships continued throughout the year with only a small number of
refugee claims approved. The migrants were held in custody while their cases were
being heard by Citizenship and Immigration Canada.35 The policy of holding the
migrants in custody likely caused the smugglers to change tactics. As the migrants
did not arrive in New York City there was no payment.
The investigation and prosecution of individuals responsible for human smuggling is
difficult as the organizations often operate as transnational networks with
subordinate members shielding leaders. Two court cases against those alleged to be
responsible for incidents of human smuggling in 1999 off the coast of B.C. are
concluded. In August 2000, after a six-month trial and almost a year in custody, nine
South Korean sailors were found not guilty of smuggling 131 Chinese migrants into
Canada. The men had been charged with human smuggling, two counts of criminal
negligence causing bodily harming, forcing passengers to disembark at sea and
endangering lives. The charges originated after the migrants, paying $40,000 each,
were dropped off on the shores of the Queen Charlotte Islands, B.C., in the summer of
1999. The men contested that Chinese enforcers, who hijacked the ship and loaded
migrants onto the ship, forced the sailors to smuggle the migrants into Canada. The
Crown has decided not to appeal the verdict. Six of the nine men have claimed refugee
status. This claim is currently before the Refugee Determination Board.36
In February 2001, three men were found guilty of organizing and aiding 187 illegal
Chinese migrants who were found in 1999 aboard a ship destined for Vancouver Island.
A fourth man was found not guilty. The three men were sentenced to four years in jail
and will likely be deported upon release.37
As part of an American investigation, a Coquitlam, B.C. man has been charged with
operating a ring which smuggled hundreds of Korean women into Washington state. The
individual pled guilty to one count of human smuggling and received a three-year
sentence and a US$40,000 fine. He admitted to smuggling about 960 Koreans into the
United States and received about CDN$1,500 for each, for a total of almost CDN$1.4
million.38
As a recent court case in B.C. indicates, AOC continues to be extensively involved in
the large-scale importation of heroin. In a RCMP-led operation, a Hong Kong resident
pled guilty to drug trafficking. In an operation involving police in Hong Kong and
China, the Vancouver RCMP targeted an incoming shipment of heroin which was shipped
from Guangdong province in China. The high-quality heroin was packed in 55 airtight
bricks and hidden inside the false bottom of a shipping container which also held a
legitimate shipment of Chinese-made merchandise. The accused received a 14-year jail
sentence. Six co-accused are still before the court.39
A joint forces operation, Project KATALYST, involving the Edmonton Police Service
(EPS), the RCMP and Criminal Intelligence Service Alberta (CISA), concluded in March
2001 with the arrest of five men and two women. The multi-ethnic gang was involved in
cocaine trafficking to various areas in Alberta.40 Investigation of the ring,
composed of approximately 10 members, began in 2000 after the shooting death of a
mid-level gang enforcer who was killed after he fired on police. The individuals are
charged with conspiracy to traffic cocaine.41 Approximately $340,000 dollars in cash
and property has been seized as alleged proceeds of crime.
Those charged as a result of a 1999 joint forces operation, Project KACHOU, are before
the courts. The 14-month operation, which involved the EPS, the RCMP and CISA,
investigated an AOC family. Thirty-three people were charged with a number of counts,
including cocaine trafficking, money laundering, possessing the proceeds of crime,
conspiracy and participation in a criminal gang. The cocaine was reportedly obtained
in Vancouver, and distributed to areas in British Columbia and Alberta.42
Approximately $1.7 million dollars in property, cash, jewelry and vehicles has been
seized as alleged proceeds of crime.
In Saskatchewan, particularly in the northern half, AOC groups are primarily involved
in the importation of cocaine and heroin from British Columbia and Alberta for
distribution throughout the province. Some individuals have ties to AOC groups from
Edmonton. There has been an increase in AOC groups smuggling cigarettes and liquor
across the province. In Regina, local individuals with links to the DAI HUEN JAI43
in Vancouver were actively involved in counterfeiting, drug trafficking and stolen
autos.
In 1998, an operation targeted a predominantly Asian-based gang in Winnipeg suspected
of trafficking cocaine. Thirty-five men and women were arrested in May 1999,
including three gang ringleaders. One pled guilty to conspiracy to traffic cocaine
and received a four-year sentence. Two more junior associates received two years each
for their parts in the conspiracy to traffic cocaine. In the investigation, more than
2,200 telephone calls were recorded which detailed the shipment of several kilograms
of cocaine from Vancouver to Winnipeg.44
The Akwesasne Mohawk Territory, Walpole Island and the Niagara area continue to be
used by AOC as routes to smuggle goods and people across the Canada/U.S. border.
In January 2000, a Canadian/American joint forces, led by the United States
Immigration and Naturalization Service, targeted human smugglers using the
Windsor-Detroit border as a conduit to the U.S. for illegal migrants. The illegal
migrants, primarily Chinese nationals, would be smuggled into Canada and taken to
Southwestern Ontario where they were either driven across the border or smuggled
across the St. Clair river, near the First Nations community on Walpole Island, into
Michigan. The four-month operation ended with charges against 11 people, including
five Canadians and the seizure of 425 Chinese passports and $260,000 US in bribes.
The five Canadians are before the court.45
In a joint forces operation between the RCMP, Citizenship and Immigration Canada, the
Korean National Police and the U.S. Immigration and Border Patrol, a Korean-based
smuggling ring was investigated. The gang allegedly smuggled about 400 Koreans and
Chinese nationals into Michigan. The gang, which had been in operation for a number
of years, is estimated to have smuggled over one thousand people into the United
States at between US$7,000 to US$25,000 each, depending on how they arrived in North
America. Nine people were arrested in Ontario, nine in Detroit and New York City and
several in Korea. This case is before the courts.46
AOC groups, often in association with other organized crime groups, continue to
exploit new and existing technologies to facilitate the manufacture and distribution
of counterfeit credit cards and other fraudulent documents.
In September 2000, approximately 57 kg of heroin, 17 kg of designer drug pills and
$1.2 million in Canadian and U.S. currency were intercepted and seized as a result of
a year-long investigation, which included cooperation from Vancouver law enforcement,
the Combined Forces Special Enforcement Unit47 and the Canada Customs and Revenue
Agency in Toronto. The heroin, which originated in Southeast Asia, was shipped by
rail after arriving in Vancouver from Guangdong province in China. The drugs were
hidden in 1,700 plastic eggs among 174,000 real duck eggs. The heroin could provide
2.85 million individual doses. Three individuals from Scarborough are charged.48
There has been an increase in AOC-operated marijuana grow operations across the
country, particularly in Calgary and southern Ontario. The bulk of the marijuana grown
in British Columbia is exported to the United States where there is a large market and
a higher profit margin. It is estimated that, in the city of Vancouver alone, there
are approximately 10,000 clandestine marijuana grow operations.
There have been convictions in one of the first cases in Canada of loan-sharking
inside a legitimate casino. None of the more than 400 victims came forward with an
official complaint. Three Toronto-area men pled guilty to charging a criminal
interest rate. The men were fined $61,000, $16,000 and $15,000. One also received
two years probation. Most loans were between $2,000 and $10,000, with a typical loan
being $5,000. First-time loans were $3,000 and had to be repaid in three days. The
first payment of 10% was taken before the client received the money. During the joint
forces investigation which began in 1998, thousands of phone calls were wiretapped.49
Outlook AOC will continue to dominate illegal migrant smuggling from Asia into Canada.
AOC groups will continue to be extensively involved in the importation of Southeast
Asian heroin to Canada
AOC groups will continue to associate with youth and street gangs and use these groups
as sources of labour and recruits and as insulation to shield senior members from the
attentions of rival gangs or law enforcement.
AOC will expand its involvement in the growing and exporting of marijuana.
---------------------------------------------------------------------------- ----
31 According to the Alien Smuggling Unit of the U.S. Department of Justice,
human smuggling from Canada to the U.S. is worth $10 billion annually. Fife, Robert,
�U.S. Attorney General Calls for Crackdown on Human Smuggling,� The National Post
(Toronto), 21 June 2001.
32 Steffenhagen, Janet, �Immigrant Gangs to Recruit ESL Kids: Gangbusters
Draw a Bead on Hoods,� The Vancouver Sun, 18 October 2000.
33 Fong, Petti, �Police Issue Warning over Vietnamese Gang Violence,� The
Vancouver Sun, 16 December 2000; Papple, Sarah, �Two Types of Slaying,� The Vancouver
Province, 12 November 2000.
34 Alphonso, Caroline and Rod Mickleburgh, ��Horrific� Boxes Hid 36 Asians,�
The Globe and Mail (Toronto),11 April 11, 2001; Morton, Brian, �Illegal Migrants
Ordered Detained: All but One of the 36 Chinese People Have Applied for Refugee
Status,� The Vancouver Sun, 19 April 2001.
35 �British Columbia: Chinese Migrants Deported,� The National Post
(Toronto), 14 September 2000.
36 Matas, Robert, �Koreans Found Not Guilty of Smuggling Illegal Aliens,� The
Globe and Mail (Toronto), 4 August 2000; �Six Koreans Want Refuge,� The Edmonton
Journal, 29 August 2000. The trial made legal history in B.C. as it was the first
time television news cameras and microphones were allowed into the courtroom.
37 Alphonson, Caroline, �Three Men Found Guilty of Aiding Illegal Migrants,�
The Globe and Mail (Toronto), 26 February 2001; Alphonso, Caroline, �Chinese Smugglers
Get 4 Years,� The Globe and Mail (Toronto), 17 March 2001.
38 Jiwa, Salim, �B.C. Businessman Accused of Smuggling Aliens, The Times
Colonist (Victoria), 11 December 2000; �B.C. Man gets Three-Year Sentence in Smuggling
Case,� The Ottawa Citizen, 20 April 2001.
39 Ivens, Andy, �14 Years for Trafficker Nabbed in Heroin Bust,� The
Vancouver Province, 2 February 200; Appleby, Timonth, Miro Cernetig and Rod
Mickleburgh, �Drug Haul Biggest in Canadian History, The Globe and Mail (Toronto), 6
September 2000. The same week as the Vancouver heroin was seized, a large heroin
seizure was made in Toronto.
40 �Cocaine Seized, 7 Arrested as Crime Ring Busted,� The Edmonton Journal,
10 March 2001; Humphreys, Adrian, �Cocaine Crime Ring Smashed in Edmonton: Armoured
Police Raid: Probe Launched After Shoot-Out with �Crazy Jimmy,� � The National Post
(Toronto), 10 March 2001.
41 �Cocaine Seized, 7 Arrested as Crime Ring Busted,� The Edmonton Journal,
10 March 2001; Humphreys, Adrian, �Cocaine Crime Ring Smashed in Edmonton: Armoured
Police Raid: Probe Launched After Shoot-Out with �Crazy Jimmy,�� The National Post
(Toronto), 10 March 2001.
42 Blais, Tony, �Crown Case Mapped Out; Organization�s Chart Alleges
So-Called Drug Gang Operated Like Large Company,� The Edmonton Sun, 4 November 2000.
43 The DAI HUEN JAI, also known as the BIG CIRCLE BOYS, is an AOC group with
a national network across Canada and has been involved in a number of criminal
activities, including drug trafficking, extortion, prostitution, gaming offenses and
the manufacture and distribution of counterfeit credit cards and other documents.
44 O�Hallarn, Brendan, �Drug Kingpin Pleds Guilty; Phone Taps Incriminate
�Manager,�� The Winnipeg Sun, 2 February 2001.
45 Richmond, Randy, �Web of Smuggling Still Growing, The London Free Press,
30 December 2000; Richmond, Randy, �Eight Chinese Migrants Nabbed � Two London-Area
Natives Held in U.S. after Young Chinese Found in Van,� The London Free Press, 4
August 2000; Dawson, Fabian, �Mounties Investigate Minister�s China Trip: Elinor
Caplan may have Unknowingly Tipped off People-Smuggling Suspect,� The Vancouver
Province, 19 December 2000.
46 Blackwell, Tom, �Police Crack Korean-based Smuggling Ring,� The Ottawa
Citizen, 24 March 2001; Faulkner, Robert, �Major Player� Sought After Arrests Made in
Asian Smuggling Ring; 1,200 Migrants Transported to US via Canada,� The Toronto Star,
24, March 2001.
47 The Combined Forces Special Enforcement Unit (CFSEU) is a permanent joint
forces operation in Toronto involving a number of police agencies which targets
various organized crime groups, such as AOC.
48 Appleby, Timothy, Miro Cernetig and Rod Mickleburgh, �Drug Haul Biggest in
Canadian History,� The Globe and Mail (Toronto), 6 September 2000; Elliot, Louise,
Dene Moore, �RCMP Cracks Scheme to Bring Heroin into Canada inside Duck Eggs,�
Montreal Gazette, 6 September 2000. This seizure was made the same week as a large
heroin seizure in Vancouver.
49 Humphreys, Adrian, �Loans Sharks Worked Casino Rama: Leaders Pled Guilty:
Interest Rates Reached 3.6 Billion Percent a Year for Gamblers,� National Post
(Toronto), 14 March 2001; Lamberti, Rob, �Casino Loan Shark Fined $61Gs,� The Toronto
Sun, 11, March 2001. Under law, interest rates are calculated over a year to see if
they are above the top legal rate of 60%. The highest rate of interest charged in
this case amounted to 3.6 billion percent a year, although no loans remained unpaid
that long. --------- Check out the Canada First Immigration Reform Committee
http://www.canadafirst.net Free Speech? http://www.canadianfreespeech.com C-FAR
Online! http://www.populist.org Paul Fromm's Personal Site: http://www.paulfromm.com
P.O. Box 332 Station 'B', Etobicoke, Ontario M9W 5L3 Tel: (905) 897-7221 -- Fax:
(905) 277-3914
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