Canada Dismantles $16m Illegal Cannabis Network in Major Organised Crime Bust
| 2025-03-27
Canadian police seize 17,000 illicit cannabis plants and charge six in an international smuggling and money laundering operation linked to identity fraud.
Canadian police seize 17,000 illicit cannabis plants and charge six in an international smuggling and money laundering operation linked to identity fraud.
Canadian law enforcement officials have disrupted what they describe as a sophisticated international criminal enterprise centred around the illicit cultivation and export of cannabis. The Royal Canadian Mounted Police (RCMP) announced the seizure and destruction of 17,000 illegal cannabis plants from three major grow operations in Ontario, alongside charges against six individuals based in Toronto and Sarnia.
The network allegedly distributed cannabis to markets in the United States and Hong Kong, with plans to extend its operations into Europe. According to the RCMP’s Greater Toronto Area Transnational Serious and Organised Crime Section, the group operated through commercial facilities staffed by undocumented workers living on-site.
The investigation, which began in mid-2022 following a referral from the Ontario Provincial Police (OPP), has also revealed a complex identity theft and financial fraud scheme. Authorities allege that the suspects used stolen personal information to fraudulently obtain Health Canada licences for medical cannabis production. These documents were then used to lease property and expand illegal cultivation.
“This was a highly organised and transnational network with the capacity to generate enormous profits through illegal cannabis exports and financial fraud,” said Inspector Nicole Noonan of the RCMP. “The collaboration and teamwork between federal, provincial, and municipal law enforcement partners underscores our shared commitment to dismantling organised crime.”
List of Individuals Charged
The following individuals have been charged with a variety of offences under the Cannabis Act and the Canadian Criminal Code:
Shao Bo “Barry” Xie, 45, of Toronto
Faced with 13 charges including unlawful cultivation, conspiracy to export, identity theft, and possession of proceeds of crime.
Feng Gao, 42, of Toronto
Charged with nine offences including conspiracy to cultivate and export cannabis, and concealment of illicit proceeds.
Shan “Sam” Gao, 34, of Toronto
Facing nine charges including document forgery, identity fraud, and drug trafficking-related offences.
Xu Han, 26, of Toronto
Charged with seven offences including impersonation for advantage and participation in a criminal conspiracy.
Fang Han, 30, of Toronto
Faces six charges including unlawful cultivation and laundering of crime proceeds.
Zdena “Denise” Mesko, 61, of Sarnia
Charged with identity theft, use of forged documents, and conspiracy to impersonate for advantage.
All six individuals were arrested at the RCMP’s Toronto West Detachment and later released on undertakings. Their first court appearances are scheduled for 7 May 2025 at the Ontario Court of Justice in Toronto.
International Reach and Financial Laundering
Investigators allege that the group laundered millions of dollars in profits through the Canadian banking system. The network’s use of stolen identities not only enabled it to secure Health Canada production licences, but also to obscure the financial origins of its earnings.
The case also involved cooperation with foreign authorities, including the United States Homeland Security Investigations (HSI), and domestic partners such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada Border Services Agency (CBSA), and Peel Regional and Toronto Police Services.
Community Support and Ongoing Efforts
Officials urged the public to remain vigilant and report suspicious activity related to drug trafficking or identity theft. The RCMP stated that continued community support is vital in disrupting the spread of organised crime.
“If you have any information related to illicit cannabis production, please contact your local police or report anonymously through Crime Stoppers,” said the RCMP in its official statement.
Context
Cannabis was legalised for recreational use in Canada in October 2018. However, commercial cultivation and sale are strictly regulated under the federal Cannabis Act. Health Canada grants licences for medical and commercial production, with significant penalties for unauthorised operations.
Despite legalisation, law enforcement continues to dismantle illegal grow operations, which are often linked to organised crime and international smuggling. The scale and sophistication of this particular case, involving identity fraud and export activity, illustrate the evolving nature of illicit drug production and distribution in Canada.
Authorities have reiterated that Canada’s legal cannabis framework is designed to ensure transparency, public health, and safety. Violations undermine these goals and pose risks both domestically and abroad.
The network allegedly distributed cannabis to markets in the United States and Hong Kong, with plans to extend its operations into Europe. According to the RCMP’s Greater Toronto Area Transnational Serious and Organised Crime Section, the group operated through commercial facilities staffed by undocumented workers living on-site.
The investigation, which began in mid-2022 following a referral from the Ontario Provincial Police (OPP), has also revealed a complex identity theft and financial fraud scheme. Authorities allege that the suspects used stolen personal information to fraudulently obtain Health Canada licences for medical cannabis production. These documents were then used to lease property and expand illegal cultivation.
“This was a highly organised and transnational network with the capacity to generate enormous profits through illegal cannabis exports and financial fraud,” said Inspector Nicole Noonan of the RCMP. “The collaboration and teamwork between federal, provincial, and municipal law enforcement partners underscores our shared commitment to dismantling organised crime.”
List of Individuals Charged
The following individuals have been charged with a variety of offences under the Cannabis Act and the Canadian Criminal Code:
Shao Bo “Barry” Xie, 45, of Toronto
Faced with 13 charges including unlawful cultivation, conspiracy to export, identity theft, and possession of proceeds of crime.
Feng Gao, 42, of Toronto
Charged with nine offences including conspiracy to cultivate and export cannabis, and concealment of illicit proceeds.
Shan “Sam” Gao, 34, of Toronto
Facing nine charges including document forgery, identity fraud, and drug trafficking-related offences.
Xu Han, 26, of Toronto
Charged with seven offences including impersonation for advantage and participation in a criminal conspiracy.
Fang Han, 30, of Toronto
Faces six charges including unlawful cultivation and laundering of crime proceeds.
Zdena “Denise” Mesko, 61, of Sarnia
Charged with identity theft, use of forged documents, and conspiracy to impersonate for advantage.
All six individuals were arrested at the RCMP’s Toronto West Detachment and later released on undertakings. Their first court appearances are scheduled for 7 May 2025 at the Ontario Court of Justice in Toronto.
International Reach and Financial Laundering
Investigators allege that the group laundered millions of dollars in profits through the Canadian banking system. The network’s use of stolen identities not only enabled it to secure Health Canada production licences, but also to obscure the financial origins of its earnings.
The case also involved cooperation with foreign authorities, including the United States Homeland Security Investigations (HSI), and domestic partners such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada Border Services Agency (CBSA), and Peel Regional and Toronto Police Services.
Community Support and Ongoing Efforts
Officials urged the public to remain vigilant and report suspicious activity related to drug trafficking or identity theft. The RCMP stated that continued community support is vital in disrupting the spread of organised crime.
“If you have any information related to illicit cannabis production, please contact your local police or report anonymously through Crime Stoppers,” said the RCMP in its official statement.
Context
Cannabis was legalised for recreational use in Canada in October 2018. However, commercial cultivation and sale are strictly regulated under the federal Cannabis Act. Health Canada grants licences for medical and commercial production, with significant penalties for unauthorised operations.
Despite legalisation, law enforcement continues to dismantle illegal grow operations, which are often linked to organised crime and international smuggling. The scale and sophistication of this particular case, involving identity fraud and export activity, illustrate the evolving nature of illicit drug production and distribution in Canada.
Authorities have reiterated that Canada’s legal cannabis framework is designed to ensure transparency, public health, and safety. Violations undermine these goals and pose risks both domestically and abroad.
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