A seven month investigation has led to a major contraband tobacco bust in the Halifax area.
Several convenience stores were searched and 12 people now face a total of 116 charges.
Police raided the stores last week, and seized small amounts of tobacco from some and large amounts from others.
The RCMP say it’s an unusual case.
“It’s not the typical contraband tobacco that’s not stamped properly or bagged properly,” says RCMP Inspector Glenn Lambe. “In this particular case, it’s product that’s bought by an individual, who then sells it to other individuals without a license.”
The majority of the charges are for the purchase, transport and possession of contraband tobacco. Police and Service Nova Scotia claim a retailer who legally bought the tobacco at a discount directly from manufacturers, broke the law by re-selling the tobacco to other retailers without a wholesaler’s license.
“That undermines the whole regime that we have in the province that ensures that there are only licensed wholesalers that are responsible for collecting the taxes,” says Bernie Meagher with Service Nova Scotia.
Service Nova Scotia also claims that one of the stores was the hub of the network. Police are accusing a man and a woman from the store of selling tobacco to other retailers.
The owner of one store says he had no idea he was doing anything illegal, and that he paid all of the taxes that were due. At another store, an employee says that his boss is going to face more than one million dollars in fines.
Potential fines range from $250 for small amounts of tobacco to $100,000 and up, depending on the number of charges. All twelve who were charged will appear in court in provincial court on March 13th.
With files from CTV’s Ron Shaw
