Contraband tobacco manufacturing facility at Six Nations shut down
OPP say it was operated by members of a non-Indigenous criminal network
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The recent raid on a Six Nations contraband tobacco manufacturer where millions worth of tobacco and drugs were seized is just the tip of the iceberg demonstrating how organized crime has found an extremely lucrative business.
OPP reported Friday that during recent raids, including a May 7 search of a manufacturing facility on Chiefswood Road, they seized almost $3 million worth of illegal cigarettes and other raids led to the seizure of illegal cannabis products, psilocybin and 15 firearms.
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“Contraband tobacco is a billion-dollar industry now,” says Rick Barnum, who retired as the deputy commissioner of OPP investigations and organized crime and is now the executive director of the National Coalition Against Contraband Tobacco.
“If you had pure cocaine to sell, you could make about 100 percent profit but in contraband tobacco, the profit margin is around 400 percent.”
That alone leads to huge interest from organized crime groups that are, according to some on Six Nations, moving to the reserve and getting residents to front their operations.
“Absolutely. There are numerous manufacturers on Six Nations that are producing contraband cigarettes connected to organized crime,” said Barnum, who worked almost exclusively fighting organized crime for 20 years.
“Tobacco is so easy. People think it’s victimless because it’s not a violent crime but it impacts everybody when the province sees taxes from legal cigarette sales dropping. Our studies see the market is close to 50 percent saturated with contraband tobacco and the number is increasing every year.”
Barnum said Criminal Intelligence Service Canada now estimates there are 152 organized crime groups in the country, ranging from well-known groups like Hell’s Angels to smaller operations targeting guns, tobacco or human trafficking.
Tobacco is a sweet spot for criminals because of the high profit and low risk.
“It’s relatively rare police have taken action against contraband tobacco manufacturers,” Barnum said of the Six Nations raid.
“I’m hopeful it will continue and I hope it will send a message and be seen as a bit of a deterrent. Those charged could face some significant consequences and a large fine.”
Organized crime groups are specifically targeting Indigenous communities as they think they can operate with impunity, away from regulators.
“Six Nations has a huge issue with contraband tobacco manufacturing and I know there will be a day when something will go horribly wrong there.”
In a news release Friday, police said 25,000 kg of contraband, other drugs and 15 firearms were seized in searches in Brantford, Six Nations and Ancaster.
Police say 15 firearms were seized during an investigation into a contraband cigarette manufacturing facility. Police allege the manufacturing facility on Chiefswood Road was run by “members of a non-Indigenous criminal network”, generating profits that weren’t invested or utilized by the community.
Dubbed Project Panda, the investigation began in February 2025 and included support from the OPP’s Organized Crime Enforcement Bureau, multiple OPP detachments and units and Six Nations Police.
Officers searched vehicles coming out of the manufacturing facility on March 21 and March 27 and, during the investigation, seized more than 11 million cigarettes with an estimated street value of $2.8 million.
Police also seized more than 616.8 kg of illegal cannabis and a large quantity of other illegal cannabis products with an estimated street value of approximately $3 million.
Approximately 3.16 kg of psilocybin (magic mushrooms) with an estimated street value of $31,600, 15 firearms and multiple skids of contraband tobacco packing material were also seized.
“Project Panda has resulted in a large seizure of contraband tobacco from a facility being operated by members of a non-Indigenous criminal network who do not reside on Six Nations of the Grand River Territory,” said OPP Chief Superintendent Mike Stoddart, Organized Crime Enforcement Bureau.
“The OPP Organized Crime Enforcement Bureau is committed to working collaboratively with our municipal and First Nations policing partners to take enforcement action against criminal networks involved in the production and manufacturing of contraband tobacco.
“The investigation is ongoing. More information will be provided if it becomes available.”
No arrests have been made as a result of the investigation, the OPP said.
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