Counterfeiting of Credit Cards and the Smuggling of Hundreds of Pounds of Marijuana into the United States HaltedJuly 3rd, 2002 10:00 a.m. Delta, B.C. The Organized Crime Agency of British Columbia (OCABC), in conjunction with numerous Canadian and U.S. law enforcement agencies, has completed a lengthy and complex investigation involving the counterfeiting of credit cards and the smuggling of hundreds of pounds of marijuana into the United States. Numerous other criminal activities and offences were uncovered during the course of the investigation. In January 2000, responding to information received from the Vancouver Police Department Gang Crime Unit, OCABC began an investigation into the criminal activities of several high level members of the "Big Circle Boys". This file was dubbed "Project Coconut". This investigation initially focused on a large-scale cross border counterfeit credit card scheme but, as it progressed, it became evident that members of the suspect groups were also involved in the smuggling of significant amounts of marijuana into Washington State by boat from a marina on Vancouver Island. Vancouver based Vietnamese marijuana producers provided the marijuana to the Chinese exporters who arranged for the marine transport and then delivery to distributors in Bellingham and Seattle. Investigators intercepted three such shipments and seized approximately 555 pounds of marijuana in total. After the second marijuana shipment was seized by police in October 2000, the Chinese exporters mistakenly believed that one of their couriers had stolen the load, to sell himself. It was determined that the courier, his wife and children who lived in Atlantic City were in grave danger and OCABC contacted the Atlantic City Police and the FBI. A short time later in Atlantic City, two men who had just flown out from Vancouver, were arrested on the doorstep of the courier. One of the Chinese exporters has been charged with counseling a person to commit murder. In January and February 2001, OCABC executed search warrants at various residences and businesses in Vancouver and Richmond, seizing marijuana, ecstasy and cash. In total approximately 825 lbs of B.C. Marijuana, worth more than $2 million U.S. dollars were seized during the course of this investigation, 3000 ecstasy pills and $300,000.00 in Canadian and U.S. currency. The drug seizure caused great stress between the Chinese and Vietnamese groups. The Chinese were interdicted with Vietnamese drugs causing friction and mistrust between these crime groups, which would eventually split as a result. In June 2001, Canada Customs Inspectors at the Pacific Highway Commercial Truck Crossing located 49.5 kilos of cocaine and approximately $65,000.00 U.S. cash in the sleeper of a tractor trailer unit entering Canada. The information leading to this search came from the "Project Coconut" investigation. On the credit card side of the file, it was established early in the investigation that a major credit card manufacturing factory was in operation in Vancouver with equipment and materials for the factory being imported from California. It became clear that the skimming of legitimate credit cards was being done in most cities in North America, with the skimmed information downloaded into a laptop computer where lists of numbers would be produced for sale. These lists would then be sent by fax to Vancouver for sale by a broker who would sell them to someone with access to the counterfeit credit card factory. It was not uncommon for these brokers to have hundreds of numbers at their disposal for sale. Due to the international scope of this investigation, OCABC sought the assistance and expertise of the US Secret Service. We thank them for their invaluable support. The Calgary Police Service was conducting their own investigation into a major distribution ring of counterfeit credit card distributors. It was determined that the Calgary file and the OCABC file were linked and a successful joint investigation ensued. In January of this year, Calgary announced the completion of their operation which resulted in numerous charges and extensive seizures. In January 2001, warrants were executed at a number of Vancouver residences including a home in east Vancouver that housed what has been described as the most sophisticated and one of the largest counterfeit credit card factories ever seen by authorities in North America. Rarely do police see complete factories set up due to the problems encountered if the factory is compromised. They are usually set up in cells with each stage of the process independent of the other. By doing this, the crime group only loses one phase of the process if police or another crime group compromise the location. Enough material was located at the factory to make counterfeit credit cards conservatively valued at more than $200 million. Records indicated that this factory had likely been in operation since approximately 1994. Upon examination of the factory it was found that much of the equipment had been purchased at a business in San Francisco by one individual. Enough equipment had been purchased to outfit five factories and produce conservatively over $1 billion CDN worth of counterfeit credit cards. A number of persons were arrested at the time of the warrant executions and released with charges pending. A total of 12 persons have been charged with multiple offences. These people are aware of the charges and will be making arrangements with their lawyers to turn themselves in. The remainder will be arrested on warrant in due course. In addition to the smuggling of drugs, this group is also involved in the theft and export of expensive cars to China, out of the state of New York. This information was passed onto US Customs in the early stages of the project. In March 2001, US Customs recovered 30 stolen vehicles from inside freight cars on board a freighter destined for South Korea. These vehicles had all been stolen from Westchester County located outside of New York where they were placed into freight containers and sent by rail to Los Angeles and loaded onto a freighter for transport to South East Asia. Investigators from OCABC flew to New York and worked with investigators there during the wrap-up of this project. As we have mentioned, assistance was required and received at every level of this investigation, assistance from both inside Canada and from the United States. We would like to thank the following for their invaluable cooperation: Calgary Police Service Canada Customs & Revenue Agency Royal Bank Security US Customs Federal Bureau of Investigation (Washington) Federal Bureau of Investigation (Atlantic City) US Secret Service US Border Patrol Washington State Patrol Atlantic City Police Department Delta Police Department Burnaby RCMP West Vancouver Police Department Richmond RCMP US Customs (New York) New York Police Department New York District Attorney’s Office Seattle District Attorney’s Office |