Calgary police bust alleged money laundering operation tied to illegal steroid business

Calgary police have charged three men and one woman alleged to be responsible for the production and illegal sale of anabolic steroids over the course of eight years, resulting in an illegal profit of more than $9 million.

Calgary police have charged four people in connection to an alleged multi-million dollar money laundering operation tied to the illegal sale of anabolic steroids.

Investigators say Pareto Pharmaceuticals, an anabolic steroid business, acquired $9 million through the sale of illegal steroids over an eight-year period, which they then laundered through cryptocurrency and real estate investments.

Police began investigating the company back in 2020, but say money laundering investigations are complex and lengthy.

"This was a sophisticated money laundering operation that required extensive time, resources and collaboration with other agencies to thoroughly investigate, so that the necessary evidence could be collected and the right people held accountable," said Staff Sgt. Geoff Gawlinskin a release.

The production and sale of anabolic steroids is prohibited by the Controlled Drugs and Substances Act, and police say the other bodybuilding products sold by Pareto Pharmaceuticals were restricted by the Food and Drugs Act.

Police say the products were sold online on the websites paretopharmaceuticals.com and paretopharma.com, as well as through online sales representatives and in gym. 

The investigation has led to charges against three men and one woman, the owner and operators of Pareto Pharmaceuticals.

"After analyzing more than 150 bank accounts connected to the Pareto Pharmaceuticals business, investigators determined the money was laundered through the use of multiple bank accounts and securities investments belonging to the accused and their shell companies," police said.

"Money derived from the Pareto Pharmaceuticals business was also converted into various cryptocurrencies, which was then used for the purchase and sale real estate. This process allowed for the reintegration of the funds into the banking system as 'clean' money."

During the investigation, police uncovered a manufacturing lab where pills and injectables were being made illegally.

"Raw anabolic steroids and other supplies were internationally shipped to Calgary using fake names and picked up by the suspects using fake identity documents," police said.

"These supplies were then taken to the lab and manufactured into Pareto Pharmaceuticals products, packaged and distributed Canada-wide."

On Wednesday, police searched various locations throughout Calgary and Chestermere, including four vehicles, and a single location in Vancouver, B.C.

As a result, police say a variety of drugs and drug-related products were seized, with a combined street value of approximately $7 million, including:

• 82.3 kilograms of raw anabolic steroid power with an approximate street value of $4,000,000; 
• 3,174 vials of ready-to-sell anabolic steroid with an approximate street value of $317,000; 
• 233,388 individual anabolic steroid pills, packaged and ready-to-sell, with an approximate street value of $350,000; 
• 355,643 individual Food and Drugs Act regulated pills, packaged and ready-to-sell, with an approximate street value of $533,000; 
• 29 kilograms of raw powder of Food and Drugs Act regulated substances, with an approximate street value of $1,740,000; and 
• 289 kilograms and 70 litres of other raw powders and liquids used in the production of Pareto Pharmaceuticals products.

Police say other seized items that are believed to be the proceeds of crime included $589,585 in Canadian currency and approximately $500,000 worth of jewelry.

As a result, 33-year-old Fraser Landeen of Vancouver, B.C. and 33-year-old George Elias Haddad, 29-year-old Spencer Jonathon Rivers and 28-year-old Angela Li, all of Calgary, are facing numerous charges. 

All four are scheduled to next appear in court on Jan. 12, 2024.