POT TRADED FOR U.S. GUNS, POLICE SAY

Firearms Seized In Major Bust In Toronto Area

Guns used by Toronto criminals are being purchased legally in the
United States, smuggled across the border and then traded for
Canadian marijuana, U.S. and Canadian authorities said yesterday
after a major bust.

"We are the source state of Ontario crime guns," said Special Agent
Regina Lombardo of the U.S. Bureau of Alcohol, Tobacco, Firearms and
Explosives (ATF). "I know there's a direct exchange for the homegrown
hydroponics. It seems to be the demanded exchange here in the
guns-for-drugs exchange."

The ATF joined several Canadian police forces yesterday to announce
the arrest of 10 suspects from Peel, Halton and Toronto on 134 gun
and drug charges, and the seizure of almost 30 guns and a large
amount of drugs. Two arrest warrants and several search warrants were
also executed in Florida and Arkansas, with more expected.

Seized were 26 handguns, all originally from the U.S., more than
10,000 tablets of Ecstasy, 260 grams of methamphetamine, 515 grams of
cocaine and four kilograms of marijuana. The value of the drugs is in
the millions, officials said.

The investigation, dubbed Project Rebel, was launched last October.
Authorities said the long-running, cross-border smuggling operation
is similar to countless active syndicates.

"This criminal group has formed a sophisticated network that was
responsible for exporting large quantities of narcotics, mainly
marijuana and Ecstasy, into the United States from Canada concealed
in vehicles," said OPP Detective Inspector Steve Clegg.

"When the mule reached the United States, the drugs were removed by
members of the group and replaced with large quantities of cocaine,
methamphetamine, firearms and ammunition. The items were then
trafficked to criminals throughout Ontario and across Canada."

Special Agent Lombardo of the ATF said the guns are bought from a
legitimate retailer and then flipped to a dealer for a profit. The
dealer will then exchange them for Canadian drugs.

"They're available in the United to States to people who are not
prohibited. The problem is when those people sell them to prohibited
people. Our tracing limitations are to the last known purchaser, the
person who actually went into a gun shop to purchase those firearms.
There are many blanks between then and now," she said.

The guns seized yesterday were bought legally in the U.S. for as low
as US$140. They are later sold for hundreds, or even thousands, of dollars.

"The markup depends on the supply and the demand. Right now, there
seems to be a demand on our streets for guns," said Det.-Insp. Clegg.

He said the group arrested this week isn't linked to any specific
criminal group, like the Driftwood Crips, the recent targets of
Toronto police raids.

"They're not really particular on who they're selling to, but it's
important to note that these could have eventually ended up in the
hands of gangsters and caused devastation."

Jerry Jesso of the Canadian Border Service Intelligence Unit said
more than 600 smuggled guns were seized trying to enter Canada last
year: "Safe to say, it's a daily occurrence that a gun is seized
going across the border."