Police arrest 17, seize almost $33M in Montreal-Toronto money-laundering bust

The RCMP says it has cracked down on an elaborateinternational money-laundering network operated byorganized-crime cells in Montreal and Toronto.

Police arrested 17 peoplein early morning raids in the two cities Monday, seizing more than $32.8 million in assets.

"It is by depriving criminal groups of their money-laundering networks that we will shake the very structure of organized crime,'' saidRCMP Supt. Martine Fontaine Tuesday at a news conference.

The network had the capacity to launder millions ofdollars, she said.

Dubbed Project Collecteur, the bustinvolvedmultiple police forces and the Canada Revenue Agency (CRA),theRCMPsaid in a statement Tuesday that offered some details oftheir investigation.

Fontaine calledthe investigation extremely complex and one of the most important of its kind in Canada one of the rare money-laundering probes that has led to gangsterism charges.

Investigators had to narrow theirfocus to certain peopleand keep track of evidence, she said, in a bid to facilitate the prosecution processand not cause delays.

"It's thousands and thousands of documents to disclose and to caveat and to be prepared for full disclosure," Fontaine said.

The arrests were the result of a two-year investigationlaunched in the spring of 2016.Those targetedwere allegedly collecting money from criminal organizations in Montreal and then moving thatmoney through various individuals and currency exchange offices in Toronto.

International network

The group used an informal value transfer system with connections in Lebanon, the United Arab Emirates, Iran, the United States and China, the RCMP said. The funds were then returned to drug-exporting countries, such as Colombia and Mexico.

"This procedure allowed for the laundering of significant amounts of money originating from illegal activities, including drug trafficking. The criminal organizations could thus import drugs through this network," the RCMPsaid.

That network has now been identified and dismantled, according to the Mounties.

Of the suspects arrested, 10 were in Quebec and seven were in Ontario. The suspects, aged 26 to 71, are facing charges that includeconspiracy, possession of drugs for the purpose of trafficking and laundering proceeds of crime.

Three moresuspects are still being sought by police.Police are still looking for:

• Francisco JavierJimenezGuerrero,35, address unknown.
• VictorVargotskii,56, of Montreal.
• FrederickRayman,71, of Unionville, Ont.

The names of those arrested are:

Quebec cell

• Mohamad Jaber,51, Laval.
• Kamel Ghaddar,39, Laval.
• Eric Bradette,36, L'Assomption.
• Sergio Violetta Galvez,43, Laval.
• Alexei Parasenco,26, Montreal.
• Mario Maratta, 64, Sainte-Sophie.
• Sorin Ehrlich,62,Montreal.
• Gary Maybee,57, Austin.

Ontario cell

• Nader Gramian-Nik,56, Vaughan.
• Tania Geramian-Nik,28, Vaughan.
• Sahar Shojaei,45, Thornhill.
• Thomas Hsueh,47, Thornhill.
• Mohammadreza Sheikhhassani,55, Richmond Hill.
• Shabnam Mansouri,38, Maple.

During the investigation and the searches, policeseized drugsincludingcannabis, cocaine, hashish and methamphetamine, witha market value of close to$2.2million, the RCMPsaid.

Bank accounts and money in Canadian and foreign currencies werealso seized, for a value of$8.7million.

The CRA seizedsix properties valued at about$15million, and the RCMP seized property estimated to be worth $7million.

Clandestine swaps in parking lots

RCMPSgt.Franois-OlivierMyettesaid there were two "major organizations" operating one in Toronto and the other in Montreal.

He said the cashwas moved in suitcases, duffel bags andcar trunks.

The RCMP conducted surveillance operations, monitoring secret transactions inparking lots and elsewhere, capturing everything on video.

The suspectssometimesdidn't know each other, he said. They would identify each other during these transactionsby using a predetermined token number often aserial number on the cash.

The cash transactions involved between$500,000 and $1 million at a time. The suspects would pick up bags ofcash in Toronto and then release an equivalent value, mainlyin Dubai, he said.

"It's like if you take money from your left pocket and you exit it from your right pocket," Myettesaid. "That's the way it operates."

50 CRA investigators

Stphane Bonin, director of criminal investigations for the CRA, said 50 CRA investigators were involved in the operation in both Montreal and Toronto.

"Tax evasion and the underground economy both in Canada and abroad are priorities of the Canada Revenue Agency, as well as other tax administrations around the world," he said.

"Results like those reported today are made possible thanks to our tight collaboration with national partners such as the RCMP, as well as international partners around the world."