1 00:00:01,920 --> 00:00:09,000 Speaker 1: Campsite Media. Do you know where the name Project Mygale? Like, 2 00:00:09,280 --> 00:00:11,719 Speaker 1: could you say what it means? That means tarantula? Right. 3 00:00:12,240 --> 00:00:15,160 Speaker 1: That's Michelle, my editor, and we're sitting down at a 4 00:00:15,160 --> 00:00:20,320 Speaker 1: dinner table with Italian sandwiches, soda cans, and this guy 5 00:00:20,400 --> 00:00:24,160 Speaker 1: this question. He's an investigator, a retired cop of forty 6 00:00:24,239 --> 00:00:28,000 Speaker 1: years who worked on an undercover sting operation called Project 7 00:00:28,160 --> 00:00:31,200 Speaker 1: my Gal. He asked to be anonymous, so we're disguising 8 00:00:31,200 --> 00:00:34,279 Speaker 1: his voice with a filter. So my Gal refers to 9 00:00:34,360 --> 00:00:39,080 Speaker 1: a family of spiders that build trap doors. Did you 10 00:00:39,120 --> 00:00:42,519 Speaker 1: ever see on like the National Geographic Channel, spiders that 11 00:00:42,960 --> 00:00:46,639 Speaker 1: make little holes in the ground and then above them 12 00:00:46,720 --> 00:00:50,040 Speaker 1: they weave little sticks and grass together and literally make 13 00:00:50,080 --> 00:00:52,560 Speaker 1: a trap door, and they wait for a bug to 14 00:00:52,640 --> 00:00:58,560 Speaker 1: come on and wham, they fucking nail it. When Project 15 00:00:58,560 --> 00:01:01,320 Speaker 1: Miguel got started in routine, it was one of the 16 00:01:01,320 --> 00:01:05,600 Speaker 1: biggest cross border police operations in US Canadian history. It 17 00:01:05,640 --> 00:01:09,840 Speaker 1: employed hundreds of officers and several law enforcement agencies, including 18 00:01:09,880 --> 00:01:13,800 Speaker 1: the d e A and Homeland Security. The operation targeted 19 00:01:13,840 --> 00:01:17,880 Speaker 1: cartel runners, money launders, and narcotics traffickers on both sides 20 00:01:17,920 --> 00:01:21,440 Speaker 1: of the Atlantic Ocean. Duffel bags of cash, zip blos 21 00:01:21,480 --> 00:01:24,959 Speaker 1: full of hills and bricks of cocaine. Classic bad guy stuff, 22 00:01:25,880 --> 00:01:28,200 Speaker 1: My gal, I guess we could say it was a 23 00:01:28,240 --> 00:01:31,920 Speaker 1: trap door that bag I just walked Then what would 24 00:01:31,920 --> 00:01:35,759 Speaker 1: you say? That trapdoor was of easy money and these 25 00:01:35,800 --> 00:01:39,080 Speaker 1: people would just go down that hole. And one of 26 00:01:39,120 --> 00:01:41,560 Speaker 1: the people who walked right into that trap was an 27 00:01:41,720 --> 00:01:49,160 Speaker 1: enterprising businessman named Derek White Card A Little Amazing Love 28 00:01:49,280 --> 00:02:02,360 Speaker 1: It Yeah from Camps Media and Dan Patrick Productions. I'm 29 00:02:02,480 --> 00:02:21,240 Speaker 1: Roger Gola and this is Running Smoke, Episode two, The Trapdoor. 30 00:02:23,440 --> 00:02:25,920 Speaker 1: When Derek made a deal to take raw tobacco as 31 00:02:25,960 --> 00:02:28,799 Speaker 1: payment for renting out as race cars, it turned out 32 00:02:28,840 --> 00:02:32,400 Speaker 1: to be much more than a simple business transaction. Derek 33 00:02:32,480 --> 00:02:36,320 Speaker 1: had unknowingly stepped right into a gigantic undercover police operation 34 00:02:36,360 --> 00:02:39,840 Speaker 1: that had been building for months. Police sketched a profile 35 00:02:39,880 --> 00:02:42,400 Speaker 1: of Derek as a major figure in the criminal organization. 36 00:02:43,120 --> 00:02:45,560 Speaker 1: But from what I could tell, all he was doing 37 00:02:45,760 --> 00:02:48,919 Speaker 1: was buying and selling raw tobacco on his mohawk territory. 38 00:02:49,840 --> 00:02:52,880 Speaker 1: So you're probably wondering, how the hell did that make 39 00:02:52,960 --> 00:02:57,480 Speaker 1: him a criminal? Isn't tobacco legal? Answering that question turned 40 00:02:57,480 --> 00:03:01,040 Speaker 1: out to be more difficult than I anticipated. The problem 41 00:03:01,120 --> 00:03:03,720 Speaker 1: was every time we reached out to a law enforcement agency, 42 00:03:04,000 --> 00:03:06,240 Speaker 1: they told us they couldn't comment on an open case. 43 00:03:07,040 --> 00:03:09,880 Speaker 1: But after months of calling around, we did find someone 44 00:03:09,919 --> 00:03:13,040 Speaker 1: who would speak to us, A retired police officer who 45 00:03:13,080 --> 00:03:16,720 Speaker 1: helped investigate the case against Derek, the same investigator you 46 00:03:16,800 --> 00:03:20,040 Speaker 1: heard earlier through a voice changer. His name was never 47 00:03:20,080 --> 00:03:23,280 Speaker 1: revealed in the court proceedings or media reports around Project Miguel, 48 00:03:23,680 --> 00:03:25,640 Speaker 1: so he asked that we don't reveal his name either, 49 00:03:26,240 --> 00:03:29,639 Speaker 1: so we'll call him Jimmy. When I started doing this, 50 00:03:30,480 --> 00:03:34,440 Speaker 1: I had this have somebody explained to me what a 51 00:03:34,480 --> 00:03:38,760 Speaker 1: list of tobacco was, and I guess after ten years 52 00:03:38,760 --> 00:03:42,640 Speaker 1: of doing this, they become a subject matter expertal and 53 00:03:42,720 --> 00:03:46,840 Speaker 1: basically all I focused on was contraband tobacco between the 54 00:03:46,920 --> 00:03:51,760 Speaker 1: States and Canada, specifically how New York plays into it. Now, 55 00:03:51,800 --> 00:03:55,120 Speaker 1: on its face, the phrase contraband tobacco doesn't make a 56 00:03:55,120 --> 00:03:58,320 Speaker 1: whole lot of sense, because, well, tobacco is legal just 57 00:03:58,360 --> 00:04:01,600 Speaker 1: about everywhere in the world. But the difference between regular 58 00:04:01,800 --> 00:04:06,920 Speaker 1: legal tobacco and illicit or contraband tobacco comes down to taxes. 59 00:04:07,520 --> 00:04:11,360 Speaker 1: Almost every government in the world taxes tobacco. So someone 60 00:04:11,400 --> 00:04:15,880 Speaker 1: manages to sneak tobacco into a country without paying those taxes, Well, 61 00:04:16,000 --> 00:04:19,880 Speaker 1: now that's considered contraband, which comes with the criminal charge 62 00:04:20,080 --> 00:04:23,400 Speaker 1: of defrauding the government. Jimmy has been working as a 63 00:04:23,400 --> 00:04:26,320 Speaker 1: cop since he was nineteen, but after he retired about 64 00:04:26,360 --> 00:04:29,840 Speaker 1: ten years ago, he started working on contraband tobacco investigations 65 00:04:29,880 --> 00:04:33,160 Speaker 1: for different law enforcement agencies. He was eager to peel 66 00:04:33,200 --> 00:04:35,080 Speaker 1: back the curtain on an issue that not a whole 67 00:04:35,080 --> 00:04:38,560 Speaker 1: lot of people understand. He had packs of smuggled cigarettes 68 00:04:38,600 --> 00:04:40,880 Speaker 1: and stacks of printed documents laid out on his dinner 69 00:04:40,920 --> 00:04:43,440 Speaker 1: table for me to flip through. He'd also been up 70 00:04:43,480 --> 00:04:46,040 Speaker 1: late the previous night working on a power point presentation 71 00:04:46,160 --> 00:04:48,960 Speaker 1: just for us. The numbers that all get into here 72 00:04:49,000 --> 00:04:52,960 Speaker 1: with you are just staggering, just staggering, the billions of dollars. 73 00:04:53,560 --> 00:04:56,080 Speaker 1: One thing I wanted to know is one pound of tobacco, 74 00:04:56,200 --> 00:04:59,320 Speaker 1: one pound of royal leaf process tobacco, or what I 75 00:04:59,360 --> 00:05:03,080 Speaker 1: call cut rag. You could fit one pound of cut 76 00:05:03,160 --> 00:05:07,440 Speaker 1: rag tobacco approximately in a one gallon zip block back 77 00:05:10,040 --> 00:05:14,560 Speaker 1: no plugment for zip block, zip block the bag for smugglers, 78 00:05:14,520 --> 00:05:16,599 Speaker 1: and the choice of smugglers around the world. Black please 79 00:05:16,640 --> 00:05:20,719 Speaker 1: sponsor s okay. So one pound of tobacco makes five 80 00:05:20,800 --> 00:05:23,520 Speaker 1: hundred cigarettes or roughly two and a half corns. A 81 00:05:23,640 --> 00:05:28,280 Speaker 1: tractor trailer holds thirty four thousand pounds of cut rack tobacco. 82 00:05:28,839 --> 00:05:33,039 Speaker 1: So here's the problem for Canada. Thirty four thousand pounds 83 00:05:33,080 --> 00:05:35,880 Speaker 1: of cut rag times five hundred cigarettes per pound. If 84 00:05:35,880 --> 00:05:38,040 Speaker 1: you run all the numbers, what you come out with 85 00:05:38,240 --> 00:05:41,440 Speaker 1: is that a single tractor trailer of contraband tobacco that 86 00:05:41,480 --> 00:05:45,600 Speaker 1: illegally crosses the Canadian border comes out two around seven 87 00:05:45,680 --> 00:05:49,520 Speaker 1: and a half million dollars innovated taxes, and those trucks 88 00:05:49,560 --> 00:05:54,080 Speaker 1: cross every day. It was a massive logistical accomplishment. I mean, 89 00:05:54,200 --> 00:05:57,040 Speaker 1: we can organize a coffee and donut run without an 90 00:05:57,080 --> 00:06:00,880 Speaker 1: argument for ten minutes. These people are doing international money laundering. 91 00:06:01,440 --> 00:06:07,240 Speaker 1: They're they're transporting contraband for thousands of miles. Tobacco brought 92 00:06:07,320 --> 00:06:09,920 Speaker 1: a lot of different groups together. The project my Gal 93 00:06:10,000 --> 00:06:15,280 Speaker 1: exposed that if you want to bring tobacco attractor trailers 94 00:06:15,320 --> 00:06:19,640 Speaker 1: worth up into your facility, you need an organized network 95 00:06:19,720 --> 00:06:25,480 Speaker 1: to do that. Who better than organized crime. Tobacco is 96 00:06:25,520 --> 00:06:28,960 Speaker 1: a commodity for organized crime. Whenever they could make money 97 00:06:28,960 --> 00:06:35,200 Speaker 1: off of their going to exploit it's funding their other businesses. 98 00:06:35,320 --> 00:06:38,120 Speaker 1: They used to use cash to fund their drug businesses, 99 00:06:38,320 --> 00:06:41,400 Speaker 1: They used to use cash to fund their human trafficking business, 100 00:06:41,680 --> 00:06:46,080 Speaker 1: to fund their their gun business. Elicit tobacco has become 101 00:06:46,120 --> 00:06:51,560 Speaker 1: the new currency for organized crime. They use cigarettes and 102 00:06:51,640 --> 00:06:57,120 Speaker 1: it makes my skin crawl. And the thing about organized 103 00:06:57,160 --> 00:06:59,520 Speaker 1: crime is that it needs someone at the top to 104 00:06:59,800 --> 00:07:03,880 Speaker 1: or nize the crime. In this case, investigators had their 105 00:07:03,880 --> 00:07:07,440 Speaker 1: eyes on a man named Sylvan et Tier by Day. 106 00:07:07,680 --> 00:07:10,520 Speaker 1: Etia was the owner and operator of a prohibition themed 107 00:07:10,520 --> 00:07:15,920 Speaker 1: bar in Montreal's suburbs called Well Prohibition by Night. Though 108 00:07:16,240 --> 00:07:19,400 Speaker 1: he was an alleged associate of the Hell's Angels, managing 109 00:07:19,400 --> 00:07:23,840 Speaker 1: tobacco transport and money movement among various criminal organizations. Sylvan 110 00:07:25,640 --> 00:07:30,800 Speaker 1: Sylvain's function was he was the sort of the the frontman, 111 00:07:30,880 --> 00:07:33,920 Speaker 1: if you will, for for the organized crime slash Hell's 112 00:07:33,960 --> 00:07:37,920 Speaker 1: Angels organization that was running these operations, or I should 113 00:07:37,920 --> 00:07:42,600 Speaker 1: say that was profiting from these operations. Sylvan's operation worked 114 00:07:42,720 --> 00:07:46,280 Speaker 1: like this. First, he would have his guy's wire money 115 00:07:46,320 --> 00:07:48,640 Speaker 1: to a broker in North Carolina to purchase a load 116 00:07:48,640 --> 00:07:52,360 Speaker 1: of tobacco attractor trailer's worth, which would run you about 117 00:07:52,360 --> 00:07:56,600 Speaker 1: eighty thousand dollars. Then Sylvan's guys would arrange for drivers 118 00:07:56,640 --> 00:07:58,760 Speaker 1: to go pick up the tobacco with a semi truck. 119 00:07:59,680 --> 00:08:01,680 Speaker 1: Under Cover police would be staked out at the North 120 00:08:01,680 --> 00:08:05,400 Speaker 1: Carolina warehouse, writing down license plate numbers of suspicious trucks 121 00:08:05,560 --> 00:08:08,480 Speaker 1: and sending them to colleagues at the border, But the 122 00:08:08,520 --> 00:08:11,960 Speaker 1: smugglers were one step ahead. The drivers would stop and 123 00:08:12,040 --> 00:08:15,160 Speaker 1: we're in Jersey or New York, unload their tobacco and 124 00:08:15,200 --> 00:08:18,800 Speaker 1: swap trailers to throw cops off the trail. Then they 125 00:08:18,840 --> 00:08:21,760 Speaker 1: would drive on up to the border. This was the 126 00:08:21,800 --> 00:08:25,720 Speaker 1: most policed part of the tobacco route. Customs agents from 127 00:08:25,760 --> 00:08:29,520 Speaker 1: both countries would be watching every vehicle going across that line, 128 00:08:30,080 --> 00:08:33,680 Speaker 1: and they were trained to spot illegal shipments. If the 129 00:08:33,679 --> 00:08:36,920 Speaker 1: cops were gonna nab one of sylvan etsgates trucks, this 130 00:08:37,200 --> 00:08:43,520 Speaker 1: is where it would happen. They will take those tractor 131 00:08:43,520 --> 00:08:47,240 Speaker 1: trailers in regular commerce and drive into a regular border, 132 00:08:47,280 --> 00:08:50,400 Speaker 1: crossing like you or I could cross, like tractor trailers 133 00:08:50,400 --> 00:08:53,679 Speaker 1: cross each and every single day, and it's welcome to candidly, 134 00:08:54,160 --> 00:08:56,280 Speaker 1: what do you have in your truck at that point. 135 00:08:56,360 --> 00:08:59,199 Speaker 1: The driver will show the border agent paperwork that documents 136 00:08:59,200 --> 00:09:03,360 Speaker 1: what the truck is caring, except that paperwork doesn't say tobacco. 137 00:09:03,760 --> 00:09:08,480 Speaker 1: It's false, but from legitimate companies like Thomasville Furniture. Everybody 138 00:09:08,480 --> 00:09:12,280 Speaker 1: knows Thomasville. So the Canadian border service guy looks at 139 00:09:12,320 --> 00:09:16,040 Speaker 1: that paperwork and sees Thomasville. Well, hey, it's a legitimate load, 140 00:09:16,320 --> 00:09:19,079 Speaker 1: and he'll let them go through. And some of it 141 00:09:19,120 --> 00:09:22,000 Speaker 1: was pretty ingenious, but some of it was pretty stupid too. 142 00:09:22,280 --> 00:09:25,680 Speaker 1: Sometimes we've also seen idiots. We're on the bill of lading. 143 00:09:26,480 --> 00:09:32,199 Speaker 1: They put sawdust. Sawdust going into Canada, the number one 144 00:09:32,240 --> 00:09:35,200 Speaker 1: producer of lumber in the entire world. You think they 145 00:09:35,240 --> 00:09:39,120 Speaker 1: got to import fucking sawdust. Groundballs like that were easy 146 00:09:39,160 --> 00:09:42,040 Speaker 1: to catch for border agents. But truth be told, a 147 00:09:42,080 --> 00:09:44,760 Speaker 1: lot of trucks full of illicit goods across that checkpoint 148 00:09:44,920 --> 00:09:48,440 Speaker 1: every single day with no problem. You have to remember 149 00:09:48,640 --> 00:09:52,400 Speaker 1: these are busy international borders. Agents can't open up and 150 00:09:52,440 --> 00:09:55,120 Speaker 1: search every single semi truck that comes through, or the 151 00:09:55,160 --> 00:09:57,360 Speaker 1: line would be backed up all the way down to Florida. 152 00:09:57,960 --> 00:10:00,600 Speaker 1: So more often than not, so then it's eight trucks 153 00:10:00,720 --> 00:10:03,920 Speaker 1: got into Canada without a hitch from there it was 154 00:10:04,040 --> 00:10:07,319 Speaker 1: smooth sail in the Silvan's warehouse on the outskirts of Montreal. 155 00:10:08,120 --> 00:10:11,400 Speaker 1: According to Jimmy, this is where the Hell's Angels come in. 156 00:10:12,640 --> 00:10:16,680 Speaker 1: Now it gets to these warehouses where literally you now 157 00:10:16,720 --> 00:10:21,760 Speaker 1: have millions of dollars worth of cut rag tobacco store 158 00:10:21,840 --> 00:10:25,240 Speaker 1: in your facility. Bad guys steal from bad guys all 159 00:10:25,240 --> 00:10:30,439 Speaker 1: the time. That's where God invent the guns. You need security. Oh, 160 00:10:30,480 --> 00:10:32,520 Speaker 1: you can't call up the local police and ask them 161 00:10:32,520 --> 00:10:35,040 Speaker 1: to guards of contraband, not, can't you? And that was 162 00:10:35,080 --> 00:10:39,720 Speaker 1: the talian with organized crime and Hell's Angels. So the 163 00:10:39,800 --> 00:10:42,960 Speaker 1: current rate is about six fifty to sixty thou dollars 164 00:10:44,120 --> 00:10:47,760 Speaker 1: to both smuggle attractor trailer load up into Canada and 165 00:10:47,840 --> 00:10:50,600 Speaker 1: to guard it until it's done. And that number is 166 00:10:51,000 --> 00:10:56,720 Speaker 1: the cut that the Hell's Angels and truck drivers would 167 00:10:56,720 --> 00:11:01,440 Speaker 1: get for both the smuggling and storage, so it'll be 168 00:11:01,480 --> 00:11:04,360 Speaker 1: like a smuggling fee of transportation fee. You break it 169 00:11:04,440 --> 00:11:07,320 Speaker 1: up how you want. It cost sixty dollars to get 170 00:11:07,320 --> 00:11:10,600 Speaker 1: the stuff from North Carolina into Counda's safely and securely, 171 00:11:11,280 --> 00:11:14,720 Speaker 1: so it's quite profitable just for the muscle on the street. 172 00:11:15,600 --> 00:11:21,199 Speaker 1: Solvan's operation was massive. It involves brokers, money, launders, outlaw bikers, 173 00:11:21,200 --> 00:11:24,280 Speaker 1: and truck drivers in two different countries. He got in 174 00:11:24,320 --> 00:11:26,960 Speaker 1: the entire supply chain down to his science, and the 175 00:11:27,000 --> 00:11:30,840 Speaker 1: folks involved were making money hand over fist. But as 176 00:11:30,840 --> 00:11:34,880 Speaker 1: the organization got bigger, it also became more vulnerable. When 177 00:11:34,920 --> 00:11:38,080 Speaker 1: you have an operation the size and scope of Mygale, 178 00:11:38,559 --> 00:11:41,720 Speaker 1: with so many loads of cut rag moving back and forth, 179 00:11:42,280 --> 00:11:46,840 Speaker 1: it is inevitable that one of those loads is going 180 00:11:46,880 --> 00:11:51,200 Speaker 1: to get picked off by Canadian Border Services, or a 181 00:11:51,360 --> 00:11:53,960 Speaker 1: tractor trailer is going to have an accident and the 182 00:11:54,000 --> 00:11:57,360 Speaker 1: back's gonna open up and tobacco is gonna spread out everywhere. 183 00:11:58,040 --> 00:12:02,040 Speaker 1: Stuff is gonna happen. Flukes and freak accidents were one thing. 184 00:12:02,480 --> 00:12:06,360 Speaker 1: What Stivan was really worried about, though, was being infiltrated 185 00:12:06,440 --> 00:12:10,560 Speaker 1: by cops. When you have cases of this scope and 186 00:12:10,720 --> 00:12:16,880 Speaker 1: you have players from warehouse employees to forklift drivers, to brokers, 187 00:12:16,880 --> 00:12:23,439 Speaker 1: to bankers, to truck drivers, to sled operators to boat operators, 188 00:12:24,120 --> 00:12:32,880 Speaker 1: you have a great opportunity to insert and undercover coming 189 00:12:32,960 --> 00:12:47,800 Speaker 1: up after the break. You saw me declared to that 190 00:12:47,960 --> 00:12:51,000 Speaker 1: you just wanting that we will get is the truth 191 00:12:50,559 --> 00:12:53,760 Speaker 1: and nothing but the truth I do. I do. The 192 00:12:53,800 --> 00:12:56,400 Speaker 1: tape you're hearing, we got it from the Montreal courthouse 193 00:12:56,520 --> 00:12:59,839 Speaker 1: after months of waiting through forums and files. It's a 194 00:13:00,000 --> 00:13:03,199 Speaker 1: recording of a testimony from one of Sylvan's key collaborators, 195 00:13:03,600 --> 00:13:07,440 Speaker 1: a convicted money launderer named Martin Grennier. He was an 196 00:13:07,440 --> 00:13:09,920 Speaker 1: asset for a guy like Sylvan because he had a 197 00:13:09,960 --> 00:13:13,319 Speaker 1: skill set that was central to any smuggling operation, money 198 00:13:13,360 --> 00:13:17,360 Speaker 1: laundering and transport. So this is a message I received 199 00:13:17,400 --> 00:13:21,160 Speaker 1: from its He he's asking me if I know well 200 00:13:21,520 --> 00:13:25,640 Speaker 1: the driver of the truck that brings the tobacco from 201 00:13:25,640 --> 00:13:31,480 Speaker 1: the US to Canada, the transfer I was able to 202 00:13:31,520 --> 00:13:35,839 Speaker 1: move money to UH to outside of Canada, the the 203 00:13:36,080 --> 00:13:39,640 Speaker 1: the contact and I also had contacts in the transport 204 00:13:39,679 --> 00:13:44,720 Speaker 1: world for bouge in order to remove some tobacco. He 205 00:13:44,760 --> 00:13:46,400 Speaker 1: was put in charge of running the nuts and bolts 206 00:13:46,440 --> 00:13:49,240 Speaker 1: of the smuggling operation and making sure things went smoothly. 207 00:13:49,640 --> 00:13:51,439 Speaker 1: Here he is telling the court about a time that 208 00:13:51,520 --> 00:13:54,480 Speaker 1: Sylvan centem a text asking if he knew why cops 209 00:13:54,480 --> 00:13:57,439 Speaker 1: were sniffing around the warehouse. The reason he gives me 210 00:13:57,600 --> 00:14:00,280 Speaker 1: is that after we went to pick up a load 211 00:14:00,320 --> 00:14:04,240 Speaker 1: of tobacco in Buffalo, three or four weeks after the 212 00:14:04,360 --> 00:14:08,600 Speaker 1: police went there because then the libor, so the police 213 00:14:08,600 --> 00:14:12,720 Speaker 1: went there to verify everything. And then he tells me 214 00:14:12,800 --> 00:14:18,719 Speaker 1: also that after we dropped the load of tobacco at 215 00:14:18,720 --> 00:14:27,240 Speaker 1: Saint me there was four cars watching or following the 216 00:14:27,280 --> 00:14:33,080 Speaker 1: dirt truck. That dirt truck that pick up the tobacco, 217 00:14:33,240 --> 00:14:36,000 Speaker 1: saying to me and to bring it to another destination. 218 00:14:36,520 --> 00:14:40,160 Speaker 1: Police were swarming at the DRA applications and tailing his trucks, 219 00:14:40,200 --> 00:14:42,560 Speaker 1: and he was starting to get nervous. Et A wanted 220 00:14:42,600 --> 00:14:44,840 Speaker 1: to know if the drivers could be working with the cops. 221 00:14:45,680 --> 00:14:49,520 Speaker 1: Grant told him not to worry. His guys were legit batties. 222 00:14:49,920 --> 00:14:53,760 Speaker 1: They were experienced narcotic smugglers. And so when when he 223 00:14:53,800 --> 00:14:58,240 Speaker 1: says that, how do you answer him? So I'm telling him, 224 00:14:58,840 --> 00:15:02,040 Speaker 1: I don't think the proble limids coming from us, because 225 00:15:02,280 --> 00:15:06,920 Speaker 1: my driver is also crossing white referring to cocaine. So 226 00:15:08,920 --> 00:15:12,680 Speaker 1: I don't guarantee you that he's not hot, mean that 227 00:15:12,760 --> 00:15:17,120 Speaker 1: he doesn't have police following him. But I confirmed to 228 00:15:17,200 --> 00:15:20,000 Speaker 1: him that my driver is sitting down at his house, 229 00:15:20,320 --> 00:15:24,000 Speaker 1: so there's no problem from my side. But all of 230 00:15:24,040 --> 00:15:27,200 Speaker 1: that was a lie because the man still then et 231 00:15:27,280 --> 00:15:31,520 Speaker 1: C was texting was a double agent. Martin Grenier had 232 00:15:31,560 --> 00:15:35,080 Speaker 1: been working with the cops for years, feeding information back 233 00:15:35,120 --> 00:15:38,400 Speaker 1: to his handlers on every single money transfer and tobacco shipment. 234 00:15:39,200 --> 00:15:42,480 Speaker 1: Oh and the drivers that Sylvan was worried about, Yeah, 235 00:15:42,720 --> 00:15:46,240 Speaker 1: they were undercover officers too. Do you know who did 236 00:15:46,240 --> 00:15:53,600 Speaker 1: the transporting for you? Yeah? HSI don't tell. So it 237 00:15:53,720 --> 00:15:58,080 Speaker 1: was HSI um so undercover agents working honor and security 238 00:15:58,080 --> 00:16:09,040 Speaker 1: in the United States. What my gal offered was a 239 00:16:09,160 --> 00:16:14,800 Speaker 1: very unique opportunity to insert undercover agents anywhere along the line, 240 00:16:15,240 --> 00:16:19,240 Speaker 1: from the truck driver to a warehouse operator. It was 241 00:16:19,280 --> 00:16:23,880 Speaker 1: a very complete and complex operation. Tell me about how 242 00:16:23,920 --> 00:16:29,000 Speaker 1: you place undercover officers in key positions in this trade. 243 00:16:30,120 --> 00:16:32,640 Speaker 1: You need an informant, You need an inform at the 244 00:16:32,720 --> 00:16:35,720 Speaker 1: vouch for you. You need an informant to say, hey, 245 00:16:35,760 --> 00:16:37,840 Speaker 1: this guy is buying from you, or this guy is 246 00:16:37,880 --> 00:16:47,160 Speaker 1: looking for a new whatever, and it's an introduction. Fortunately 247 00:16:47,200 --> 00:16:50,200 Speaker 1: for investigators, they had the perfect person for the job, 248 00:16:50,920 --> 00:16:54,440 Speaker 1: Martin Grenier. You got arrested in the United States for 249 00:16:54,520 --> 00:17:00,640 Speaker 1: money laundry, Is that right, Okay? And it was. It 250 00:17:00,680 --> 00:17:03,640 Speaker 1: was as a result of that arrest for money laundering 251 00:17:04,040 --> 00:17:07,360 Speaker 1: in the us that you started to work for the police. 252 00:17:07,400 --> 00:17:12,960 Speaker 1: Is that correct? Okay, yes, all right, so can you 253 00:17:13,000 --> 00:17:16,000 Speaker 1: tell us day? Long story short. He worked with criminal 254 00:17:16,080 --> 00:17:19,320 Speaker 1: organizations for years until he was arrested in twenty twelve 255 00:17:19,400 --> 00:17:22,720 Speaker 1: on money laundering charges. Not long after that he made 256 00:17:22,720 --> 00:17:24,400 Speaker 1: a deal with the d e A and the Quebec 257 00:17:24,440 --> 00:17:28,240 Speaker 1: Police Force. We're unclear on the exact terms of that deal, 258 00:17:28,720 --> 00:17:32,679 Speaker 1: but beginning in Martin Grenier was back on the street 259 00:17:32,960 --> 00:17:34,800 Speaker 1: and put word out that he wanted to work with 260 00:17:34,800 --> 00:17:38,400 Speaker 1: his old boss again. And how do you know, Mr 261 00:17:38,480 --> 00:17:46,040 Speaker 1: at Enormous. I know him for having done some criminal 262 00:17:46,080 --> 00:17:49,080 Speaker 1: activities for him over two periods. Back in the day, 263 00:17:49,280 --> 00:17:53,440 Speaker 1: Grenier had been part of Savant Ettier's crew, and after 264 00:17:53,480 --> 00:17:57,040 Speaker 1: his arrest, he managed to rejoin the group. For years, 265 00:17:57,119 --> 00:18:00,160 Speaker 1: Grenier worked as a double agent, managing the legist six 266 00:18:00,160 --> 00:18:03,280 Speaker 1: of Besier's tobacco business and feeding all that information back 267 00:18:03,320 --> 00:18:06,600 Speaker 1: to the cops. Grenier was particularly well placed to get 268 00:18:06,680 --> 00:18:09,679 Speaker 1: high level intel on all the wire transfers and semi trucks, 269 00:18:10,320 --> 00:18:12,119 Speaker 1: and when an order came in for a load of 270 00:18:12,119 --> 00:18:15,160 Speaker 1: tobacco heading to a Native territory on the south shore 271 00:18:15,160 --> 00:18:19,280 Speaker 1: of Montreal, Grenier got a message directly from sylvan Etta. 272 00:18:19,560 --> 00:18:22,399 Speaker 1: I received a message from Chia attended to nine. He 273 00:18:22,520 --> 00:18:25,119 Speaker 1: was asking me if I know someone buy a class 274 00:18:25,200 --> 00:18:30,800 Speaker 1: bar the same good transport I from Sarah. Why they 275 00:18:30,960 --> 00:18:36,720 Speaker 1: y house is to the client client being an individual 276 00:18:36,880 --> 00:18:41,639 Speaker 1: on an engine reservation. When you said the um, you 277 00:18:41,720 --> 00:18:45,040 Speaker 1: had mentioned where the client was located? Sorry, where was 278 00:18:45,119 --> 00:18:50,040 Speaker 1: the client located? Don't so like a yeah, on an 279 00:18:50,080 --> 00:18:55,480 Speaker 1: engine reservation on the south shore. Did you know exactly where? No? 280 00:18:57,200 --> 00:19:03,640 Speaker 1: Did you know the name of the reservation. So during 281 00:19:03,960 --> 00:19:06,320 Speaker 1: a meeting face to face with you, we talked about 282 00:19:06,400 --> 00:19:13,480 Speaker 1: the kawanaki A Reserve and from stage left from the 283 00:19:13,520 --> 00:19:27,200 Speaker 1: Gnawaga Reserve enters Derek White will be right back. What 284 00:19:27,359 --> 00:19:31,840 Speaker 1: debut dis invades you? So at the beginning, who are 285 00:19:31,840 --> 00:19:36,719 Speaker 1: investigating the organization? What you're hearing is court testimony from 286 00:19:36,760 --> 00:19:39,560 Speaker 1: a Canadian border officer who worked on Project My Gael. 287 00:19:40,119 --> 00:19:43,160 Speaker 1: Somehows combed a little bit later on on the during 288 00:19:43,200 --> 00:19:47,200 Speaker 1: the investigation, we can to realize that Mr right On 289 00:19:47,640 --> 00:19:53,400 Speaker 1: is on organization. Also, as it so happened, Paul John, 290 00:19:53,640 --> 00:19:56,359 Speaker 1: the driver that offered Derek Tobacco in exchange for renting 291 00:19:56,400 --> 00:19:58,879 Speaker 1: his race car, well he turned out to be a 292 00:19:58,960 --> 00:20:02,560 Speaker 1: close associate Sylvan Etier, So when Derek made a deal 293 00:20:02,600 --> 00:20:05,080 Speaker 1: with Paul Jean for raw tobacco, it meant he was 294 00:20:05,200 --> 00:20:09,400 Speaker 1: now doing business with Sylvan Ettier's organization. Now, to be clear, 295 00:20:09,640 --> 00:20:12,320 Speaker 1: Paul Jean was never a Hell's Angel or associated with 296 00:20:12,400 --> 00:20:14,879 Speaker 1: them in any way, and he denies having any knowledge 297 00:20:14,920 --> 00:20:19,119 Speaker 1: of Silvan's associations with any criminal organizations. But the fact 298 00:20:19,240 --> 00:20:22,400 Speaker 1: is that because Sylvan was already under heavy surveillance, Paul 299 00:20:22,480 --> 00:20:25,760 Speaker 1: Jean unknowingly wrote Derek into the traps set by law enforcement. 300 00:20:26,440 --> 00:20:30,040 Speaker 1: Derek wasn't the intended target, but now he was impossible 301 00:20:30,080 --> 00:20:33,240 Speaker 1: to ignore, and according to Jimmy, he played a vital 302 00:20:33,359 --> 00:20:36,479 Speaker 1: role in the larger operation that Sylvan was running. White's 303 00:20:36,560 --> 00:20:41,280 Speaker 1: role in this was he was making money and he 304 00:20:41,440 --> 00:20:44,720 Speaker 1: was using, in my opinion on what it appears, his 305 00:20:44,880 --> 00:20:49,280 Speaker 1: native status as sort of like let's run it through me. 306 00:20:49,320 --> 00:20:51,960 Speaker 1: Nobody's going to touch the tobacco on the Indian Reservation. 307 00:20:52,680 --> 00:20:57,119 Speaker 1: A to some extent, He's right, more or less police 308 00:20:57,119 --> 00:20:59,600 Speaker 1: won't go on the Indian reservation certainly and offered tobacco. 309 00:21:00,320 --> 00:21:04,800 Speaker 1: So it's sort of having somebody like White afforded that 310 00:21:05,000 --> 00:21:08,280 Speaker 1: like home plate, like just get it here and we'll 311 00:21:08,320 --> 00:21:12,280 Speaker 1: be safe. Derek was now caught up in the massive 312 00:21:12,320 --> 00:21:15,639 Speaker 1: surveillance operation that had been wired, tapping and tailing Etta's 313 00:21:15,640 --> 00:21:19,040 Speaker 1: crew for months. His text and phone calls were intercepted 314 00:21:19,160 --> 00:21:22,840 Speaker 1: and disseminated to investigators. So the first communication four old 315 00:21:22,880 --> 00:21:27,480 Speaker 1: tweet Mr Derrick White, Texas Mr Samuel Baker sur Baker. 316 00:21:28,240 --> 00:21:33,560 Speaker 1: Mr White, Hey buddy period, which White replies the letter 317 00:21:33,800 --> 00:21:37,680 Speaker 1: k at eight a m. From Mr Jason Hill. Let's 318 00:21:37,680 --> 00:21:40,320 Speaker 1: hear the phone call. These one thirty three in transcripted 319 00:21:42,960 --> 00:21:46,120 Speaker 1: might have camera though fight your fight a remadurant teeth. 320 00:21:46,200 --> 00:21:51,520 Speaker 1: The truck broke down hopefully Tuesday or Wednesday. Attack to 321 00:21:51,600 --> 00:21:54,600 Speaker 1: be legal. These are text messages between Mr Derrick White 322 00:21:54,680 --> 00:21:59,200 Speaker 1: and Samuel Make need the tires. I'll send sponsorship a 323 00:21:59,400 --> 00:22:06,320 Speaker 1: am Monday work question mark. Yeah. That last message might 324 00:22:06,400 --> 00:22:09,840 Speaker 1: sound unrelated and innocuus on its face. Derek is a 325 00:22:09,960 --> 00:22:12,639 Speaker 1: race car driver. Of course he's buying tires and looking 326 00:22:12,680 --> 00:22:17,200 Speaker 1: for sponsors. But investigators already knew who Mr sam Baker 327 00:22:17,440 --> 00:22:22,280 Speaker 1: was one of North Carolina's biggest illicit tobacco brokers. He 328 00:22:22,400 --> 00:22:24,840 Speaker 1: was the guy buying tobacco from growers and processors. In 329 00:22:24,880 --> 00:22:27,960 Speaker 1: the States and selling it to buyers in Canada or 330 00:22:28,400 --> 00:22:32,240 Speaker 1: in Mohawk territories. Derek was using code words to speak 331 00:22:32,280 --> 00:22:34,960 Speaker 1: with Sam Baker, and over the course of the investigation, 332 00:22:35,480 --> 00:22:38,960 Speaker 1: Derek had sent him over two million dollars with memo 333 00:22:39,080 --> 00:22:44,359 Speaker 1: lines like racing expenses and NASCAR parts. Derek wasn't just 334 00:22:44,440 --> 00:22:47,080 Speaker 1: a small player in a tas game anymore. He was 335 00:22:47,200 --> 00:22:52,439 Speaker 1: running his own operation wet Phy. So at the beginning 336 00:22:52,480 --> 00:23:00,720 Speaker 1: he was doing business with the organization Little One. And 337 00:23:01,560 --> 00:23:08,760 Speaker 1: in October twenty fifteen and some rounds roundscomb so we 338 00:23:09,200 --> 00:23:13,360 Speaker 1: we came to the realization that he had his own 339 00:23:13,480 --> 00:23:19,800 Speaker 1: truck the amountain to pick up to tobacco from us. 340 00:23:22,680 --> 00:23:26,560 Speaker 1: Turns out Derek had been buying and selling wholesale tobacco 341 00:23:26,800 --> 00:23:30,360 Speaker 1: for years before he met Paul Jean, but until then 342 00:23:30,600 --> 00:23:33,359 Speaker 1: cops had no idea what he was up to. As 343 00:23:33,440 --> 00:23:36,359 Speaker 1: soon as he shook hands with Paul john though, cops 344 00:23:36,400 --> 00:23:40,000 Speaker 1: started paying attention very closely and they started filling in 345 00:23:40,080 --> 00:23:43,359 Speaker 1: the picture of Derek's tobacco operation. And from all the 346 00:23:43,440 --> 00:23:47,399 Speaker 1: intercepted messages, investigators figured out how Derek was wiring his 347 00:23:47,480 --> 00:23:51,720 Speaker 1: money and handling his logistics. Maybe we could uh, moved 348 00:23:51,760 --> 00:23:54,480 Speaker 1: it up maybe a two a week or three a 349 00:23:54,520 --> 00:23:57,680 Speaker 1: week or something, you know, for you and they don't 350 00:23:57,680 --> 00:24:00,359 Speaker 1: bring into him anymore. It's going to make you, Lauren, 351 00:24:01,160 --> 00:24:06,640 Speaker 1: everybody will be at our circle. And how he organized 352 00:24:06,720 --> 00:24:09,720 Speaker 1: for someone to warehouse's product, a guy they code named 353 00:24:09,880 --> 00:24:21,440 Speaker 1: the old Man. Yeah, okay, And how Derek directed his 354 00:24:21,560 --> 00:24:27,720 Speaker 1: driver's once the tobacco got into Kenny, the trailer riding 355 00:24:28,560 --> 00:24:33,200 Speaker 1: loaded and then be ready to go Sunday nine. Yeah. 356 00:24:34,119 --> 00:24:37,040 Speaker 1: There were heavy criminal elements to the larger organization that 357 00:24:37,119 --> 00:24:40,320 Speaker 1: project Mygale was investigating folks that were even bigger than 358 00:24:40,359 --> 00:24:44,560 Speaker 1: Sylvannetti and who were dealing narcotics and hard drugs, but 359 00:24:44,760 --> 00:24:48,959 Speaker 1: Derek seemed to be totally independent of it. Derek never 360 00:24:49,040 --> 00:24:51,879 Speaker 1: met silvan Ettier, never spoke to him, texted him, or 361 00:24:51,960 --> 00:24:56,439 Speaker 1: communicated with him at all. From what investigators found, Derek 362 00:24:56,560 --> 00:24:59,359 Speaker 1: was only dealing with tobacco and he never had any 363 00:24:59,440 --> 00:25:03,240 Speaker 1: contact the rest of the criminal operation. But that didn't matter. 364 00:25:03,600 --> 00:25:06,760 Speaker 1: Derek was on the Mygale radar and investigators were on 365 00:25:06,880 --> 00:25:10,240 Speaker 1: Derek's trail. They had an informant inside his warehouse and 366 00:25:10,400 --> 00:25:14,640 Speaker 1: undercover officers driving his trucks. Cops knew exactly where every 367 00:25:14,680 --> 00:25:18,040 Speaker 1: shipment was coming from and where it was going, And 368 00:25:18,119 --> 00:25:20,040 Speaker 1: even though they could stop every truck at the border, 369 00:25:20,600 --> 00:25:23,400 Speaker 1: they didn't. They wanted to pounce at the right moment 370 00:25:23,880 --> 00:25:26,440 Speaker 1: when they had enough evidence to go after the Kingpins. 371 00:25:27,320 --> 00:25:31,040 Speaker 1: Jimmy the Anonymous Investigator explained the logic to us, So 372 00:25:31,520 --> 00:25:36,240 Speaker 1: you typically don't want to take off a load if 373 00:25:36,320 --> 00:25:39,720 Speaker 1: you don't have to, because imagine going through this multi 374 00:25:39,840 --> 00:25:44,080 Speaker 1: year operation like Mygale, and then do something at the 375 00:25:44,280 --> 00:25:47,520 Speaker 1: end that screws it up, that makes the bag. I say, 376 00:25:47,760 --> 00:25:49,960 Speaker 1: we're not doing this for two years, we're backing out. 377 00:25:51,240 --> 00:25:53,320 Speaker 1: But when you've got as many trucks going across the 378 00:25:53,400 --> 00:25:56,200 Speaker 1: border as Derek and Sylvanne did, there's gonna be some 379 00:25:56,359 --> 00:26:00,320 Speaker 1: surprises no matter what. Stuff is gonna happen. And it 380 00:26:00,440 --> 00:26:04,360 Speaker 1: always sends a wrench in the works when that happens, 381 00:26:04,400 --> 00:26:07,040 Speaker 1: because the first thing the bad guys do is close 382 00:26:07,160 --> 00:26:10,400 Speaker 1: ranks and go, we have an informant here. But truck 383 00:26:10,440 --> 00:26:12,600 Speaker 1: could have been hit by a fucking meteor, right, and 384 00:26:12,720 --> 00:26:16,159 Speaker 1: they're going to think they have an informant, which is 385 00:26:16,240 --> 00:26:20,520 Speaker 1: exactly what happened in November, just a few days after 386 00:26:20,640 --> 00:26:23,440 Speaker 1: Derek got back from a NASCAR race at Texas Motor Speedway, 387 00:26:23,880 --> 00:26:25,840 Speaker 1: he got the news that one of his money runners 388 00:26:25,920 --> 00:26:29,239 Speaker 1: was pinched by the cops. Investigators saw the whole thing 389 00:26:29,400 --> 00:26:32,600 Speaker 1: unfold from the texts and calls they intercepted from Derek's 390 00:26:32,600 --> 00:26:36,560 Speaker 1: cell phone. They start at eight thirty six A and 391 00:26:36,800 --> 00:26:41,000 Speaker 1: Mr White writes to Mr Hill, they jacked my friend. 392 00:26:41,720 --> 00:26:44,840 Speaker 1: I'll let you know later. Don't want to talk too much. 393 00:26:48,240 --> 00:26:53,320 Speaker 1: The car fucking a little made, fucking loved it. I'm 394 00:26:53,400 --> 00:26:55,280 Speaker 1: just bringing it to what the fucking deal is to 395 00:26:55,320 --> 00:27:01,840 Speaker 1: get rid of it. Yeah, a lot of your Fortunately 396 00:27:01,920 --> 00:27:04,600 Speaker 1: for the cops working this case. Derek got over it 397 00:27:04,720 --> 00:27:08,520 Speaker 1: quickly and chalked up the arrest to bad luck. My 398 00:27:08,640 --> 00:27:11,040 Speaker 1: lawyers said the same thing. It was just a fucking 399 00:27:11,600 --> 00:27:16,720 Speaker 1: arrest of food. I saw silent saying, you know anything, 400 00:27:16,960 --> 00:27:25,000 Speaker 1: fucking sitting anything old verdable that when I said, they really, 401 00:27:25,680 --> 00:27:31,360 Speaker 1: I did fu Trying to the fun ship, Derey thought 402 00:27:31,400 --> 00:27:35,000 Speaker 1: he'd gotten off scott free, but police were biding their time, 403 00:27:35,720 --> 00:27:42,640 Speaker 1: waiting for the perfect moment to open the trapdoor coming 404 00:27:42,760 --> 00:27:45,680 Speaker 1: up next time on running smoke. I thought there was 405 00:27:45,760 --> 00:27:47,639 Speaker 1: no risk because they told me they were doing it 406 00:27:47,760 --> 00:27:50,160 Speaker 1: all legal. I took their word for it. The first 407 00:27:50,160 --> 00:27:52,320 Speaker 1: thing you want him to know is you're screwing your 408 00:27:52,320 --> 00:27:55,000 Speaker 1: gun and issier. The peacekeepers called me and they said 409 00:27:55,040 --> 00:27:58,159 Speaker 1: that we have a warrant for your arrest. So I 410 00:27:58,240 --> 00:28:07,120 Speaker 1: went turned myself in. Running Smokes a production of camp 411 00:28:07,200 --> 00:28:10,840 Speaker 1: Side Media, Dan Patrick Productions and Workhouse Media, written and 412 00:28:10,960 --> 00:28:15,040 Speaker 1: reported by me Roger Golan. Our producers are Leah Paps, 413 00:28:15,200 --> 00:28:18,560 Speaker 1: Laine Gerbig and Julie Dennische. Our editors are Michelle Lands 414 00:28:18,600 --> 00:28:22,640 Speaker 1: and Emily Martinez. Sound designed and original music by Mark McAdam. 415 00:28:23,119 --> 00:28:26,760 Speaker 1: Additional sound and mixing by ewen Lyone from Ewan. Additional 416 00:28:26,800 --> 00:28:30,600 Speaker 1: reporting by Susie McCarthy. Our executive producers are Dan Patrick, 417 00:28:30,760 --> 00:28:33,560 Speaker 1: Josh Dean of camp Side Media, Paul Anderson, Nick Vanella, 418 00:28:33,720 --> 00:28:37,560 Speaker 1: and Andrew Greenwood for Workhouse Media. Fact checking by Mary Mathis, 419 00:28:37,720 --> 00:28:40,560 Speaker 1: artwork by Polly Adams and additional thanks to Greg Horne, 420 00:28:40,640 --> 00:28:44,320 Speaker 1: Johnny Kaufman, Sierra Franco, Elizabeth van Brocklin, and Sean Flynn.