Kahnawake men on trial for organized crime charges from SQ's largest tobacco smuggling bust

A jury will begin deliberations next week in the trial of two Mohawk men from Kahnawake, Que., facing charges in connection with the Sûreté du Québec's largest operation targeting a cross-border contraband tobacco ring.

Sixty people were arrested on March 30, 2016 in connection with Operation Mygale, an investigation into the smuggling of tobacco from the United States and evasion of millions of dollars in taxes that should have been paid to the provincial and federal governments.

Derek White, 48, has pleaded not guilty to three counts of fraud, three counts of conspiracy to commit fraud and profiting from organized crime, while Hunter Montour, also 48, has pleaded not guilty to aiding organized crime. 

Police said the investigation, which took place between August 2014 and March 2016, showed how tobacco was trafficked from the Carolinas to New Jersey, and imported illegally into Canada via border crossings at ​​​​​​Lacolle, Lansdowne and Fort Erie for sale in Kahnawake and Six Nations of the Grand River in Ontario.

The jury heard four weeks of testimony in Quebec Superior Court at the Palais de justice de Longueuil about the investigation of more than 20 tobacco shipments totalling 2,294 tonnes transported via tractor trailers from a warehouse in New Jersey to warehouses in Saint-Jean-sur-Richelieu and St. Remi.

The investigation involved undercover officers, surveillance, and 11 months of intercepted communications that included more than 1,000 phone and text messages.

The Crown argued White was the head of his own criminal organization that smuggled tobacco into Quebec without paying federal excise duties or Quebec taxes, and Montour was a member of that criminal organization.

"You have to pay the taxes if it's going to legal," said lead Crown attorney David Moffat in his closing arguments this week.

It's the very words White said on a 2015 phone call caught on a wiretap.

Moffat also argued that White worked with Hells Angels associate Sylvain Ethier, who was gunned down a few months after the SQ executed the arrest warrants in 2016.

He said Ethier had his own criminal organization that worked with White's alleged organization through his right-hand man Paul Jean to import illegal tobacco shipments to be sold in Kahnawake and Six Nations of the Grand River in Ontario. The Crown argued the two gangs worked together to import tobacco, though Ethier and White never had direct contact.

Moffat suggested intercepted texts like "How's your pizza dough low or high," "I'm sending moose meat soon" and others about tires, moose meat, golf, and pizza between White, Montour and other members of the alleged gang were coded language about tobacco shipments.

The Crown said White's use of "very vague" language like calling people 'whats-his-face" or "buddy" while on the phone when not using encryption were also evidence against the defendant.

"That's an indication of a technique used by criminal organizations," said Moffat. "I suggest it means they're trying their best to hide stuff."

White 'like any other business person,' says lawyer

Throughout the majority of the trial, White and Montour's defence lawyers Pierre L'Écuyer and Louis Gelinas said little until their closing arguments Thursday morning.

"We were very quiet because we didn't have to prove anything," said L'Écuyer to the jury.

He argued the prosecution's "overwhelming evidence" failed to prove beyond a reasonable doubt that White was responsible for paying the taxes. Drawing on testimony from the Canada Revenue Agency, he said it is the importer, broker or driver's responsibility.

"We have no evidence that Mr. White was one of those people. What we're saying is that Mr. Ethier is the importer and has the responsibility. When it was in Canada, my client purchased the tobacco," said L'Écuyer.

"Their behaviour could be suspicious for many reasons but it does not mean they are guilty of any illegal infractions. I contend that his intention was to buy it and resell it at a higher profit like any other business person."

L'Écuyer also argued there was no evidence that anything White purchased was ever sold in Quebec, noting that surveillance stopped as soon as undercover officers entered Kahnawake's boundaries or shortly after.

"If sold in Ontario, there's no taxes to be paid," he said. "I suggest the reserve was a point of transit to Ontario."

As for the gang charges, he told the jury White's organization is not criminal. He said while White did buy tobacco in Quebec from Paul Jean, their only connection was through the NASCAR racing circuit and he was unaware Ethier existed.

'Tobacco is not illegal' 

Gelinas argued there was no proof presented that links Montour to anyone in Ethier's organization nor White's alleged organization.

"There's no mention in surveillance reports. He's never seen with Ethier. He's never seen with Paul Jean. Never seen with others," said Gelinas.

"He's never seen picking up money. He's never seen in Saint-Jean-sur-Richelieu or St. Remi. I'm not saying it's bad or illegal to be there, but he was not there."

He said the only evidence related to Montour are texts intercepted between him and White, as well as phone logs of calls and messages to Jim Delguercio, a worker at the warehouse in New Jersey.

"They say because Mr. Montour talked to Mr. White and Mr. Delguercio, that makes him helping a criminal organization? There's no evidence," said Gelinas.

"Tobacco is not illegal, so why is talking to Jim in New Jersey? There's nothing illegal about that, or at least they didn't prove it."

The jury will begin deliberations on Tuesday.