(Dreamstime)

By Sheldon Spackman

$25,000 Fine

Red Deer man sentenced in major contraband tobacco bust

Feb 27, 2023 | 12:02 PM

A Red Deer man charged in what Alberta Gaming, Liquor and Cannabis (AGLC) described as one of the largest ever contraband tobacco seizures in the province’s history has been given a $25,000 fine.

Ali Abdulhseen Al-Hameedawi, 47, was sentenced in Calgary provincial court last week on one count of selling/transporting/deliver/distribute tobacco, while one charge of fraud over $5,000 was withdrawn.

His co-accused, Husham Bahjat Hakeem, 39, of Calgary, was also fined $25,000 on Jan. 16, 2023, after being convicted on the same count, with his charge of fraud over $5,000 also being withdrawn.

Each were charged with trafficking in contraband tobacco, and fraud over $5000 following an investigation by AGLC in 2021 which led to the seizure of an estimated $4.5 million of contraband tobacco.

The agency says the seizure represents one of the largest in Alberta history and more than $2.5 million in lost tax revenue.

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Calgary Police and the RCMP discovered the contraband during a search of a storage facility in southeast Calgary.

AGLC advises that contraband tobacco:

• is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
• comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
• can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.

“In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight,” AGLC noted in a July 29, 2021 release.

“All wholesalers and importers of tobacco into Alberta must be licensed to sell or import tobacco for resale. Furthermore, all tobacco products must be labelled according to federal and provincial regulations. Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522.”

According to AGLC, in 2020-21, provincial revenue from tobacco taxes was approximately $755 million.

Meantime, officials with Rothmans, Benson & Hedges, acknowledge Canada is an active player in the manufacturing and distribution of contraband cigarettes.

• Federal and provincial governments in Canada lose approximately $2.1 billion annually in tax revenues to illegal cigarettes.
• The contraband market is run by criminal gangs. It is estimated that there are 175 criminal gangs involved in Canada’s contraband trade, according to the RCMP, and funds from illegal cigarettes fund other illegal activities, including guns, drugs, and human trafficking.
• Illicit trade makes cheap, unregulated tobacco products easily accessible—undermining efforts to reduce smoking prevalence and protect youth from smoking

Related: Red Deer man charged in major contraband bust going to trial