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Alberta

Joint Police Operation seizes 2 million in drugs and cash, bringing down a BC-Alberta drug “pipeline”

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From ALERT (Alberta Law Enforcement Response Team) : Several Albertans arrested

Project Elder Disrupts B.C.-Alberta Drug Pipeline

 A two-year investigation by ALERT has cut off a drug pipeline between British Columbia and Alberta. More than $2 million in drugs and cash was seized and a dozen suspects have been arrested.

Project Elder was an ALERT Edmonton investigation that probed interprovincial, wholesale drug distribution. ALERT alleges that a high volume of drugs were being shipped to Alberta involving a complex scheme that included vehicles equipped with hidden compartments.

ALERT alleges the drugs were being shipped to Edmonton and Calgary with further distribution points across the province.

“Organized crime groups don’t respect borders, which is why we need agencies like ALERT that work with law enforcement partners in other jurisdictions to investigate, disrupt and dismantle serious criminal activity such as organized crime and illegal drug trafficking. I want to thank investigators from ALERT and the other organizations involved in Project Elder for their outstanding and tireless work on this long and complex operation that maintains Albertans’ confidence in our law enforcement agencies’ abilities to ensure they are safe, secure and protected in their communities,” said Hon. Doug Schweitzer, Minister of Justice and Solicitor General.

Project Elder concluded on June 5, 2019, with several arrests taking place. Additional arrests and search warrants were staggered over the course of the investigation and took place in Edmonton, Calgary, Innisfail, and Vancouver.

Two homes, two businesses and multiple vehicles were searched. The drugs alone have an estimated street value of $1.5 million. Items seized include:

  • 9.3 kilograms of cocaine;
  • 17.2 kilograms of a cocaine buffing agent;
  • 6.0 kilograms of methamphetamine;
  • 684 grams of fentanyl powder;
  • $514,335 cash;
  • a handgun with suppressor and expanded magazine; and
  • 5 vehicles with hidden compartments.

ALERT used a number of sophisticated techniques and specialized resources to dismantle the group. Project Elder relied heavily on the assistance of: Edmonton Police Service; CFSEU-BC; North Vancouver RCMP; RCMP E-Division; Innisfail RCMP; RCMP Federal Serious and Organized Crime; and Alberta Sheriffs surveillance team.

Project Elder dates back to March 2017 when investigators targeted an Edmonton-based drug trafficking group. ALERT was able to expand the scope of that initial investigation and identified the group’s suspected B.C.-based supplier.

ALERT alleges that Neil Kravets coordinated the supply of drugs from B.C. and oversaw the group’s activities. The 28-year-old man from North Vancouver has subsequently been charged with instructing a criminal organization, among a host of other charges.

Eleven suspects with Kravets’s alleged drug network were arrested, many of whom were charged with participation in a criminal organization and conspiracy to traffic cocaine, methamphetamine, and fentanyl.

A total of 59 charges have been laid against:

  • Neil Kravets, 28, from North Vancouver;
  • Brandon Worsley, 29, from Edmonton;
  • Joseph Nicholson, 29, from Airdrie;
  • Brandon Brown, 22, from Edmonton;
  • Richard Sansoucy, 56, from Edmonton;
  • Gregory Ewald, 44, from Edmonton;
  • Fayiz Moghrabi, 28, from Vancouver;
  • Randolph Chalifoux, 37, from Edmonton;
  • Suk Han, 35, from Vancouver;
  • Andy Estrada, 29, from Edmonton;
  • Daniel Estrada Sr., 58, from Edmonton; and
  • Moshe Banin, 31, from Edmonton;

Members of the public who suspect drug or gang activity in their community can call local police, or contact Crime Stoppers at 1-800-222-TIPS (8477). Crime Stoppers is always anonymous.

ALERT was established and is funded by the Alberta Government and is a compilation of the province’s most sophisticated law enforcement resources committed to tackling serious and organized crime. Members of Calgary Police Service, Edmonton Police Service, Lethbridge Police Service, Medicine Hat Police Service, and RCMP work in ALERT.

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Alberta

Low oil prices could have big consequences for Alberta’s finances

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From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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