GANGS DIVERSIFY INTO NEW CRIMES

Mortgage Fraud, Crystal Meth Added To Menu

Asian organized crime groups are expanding their underworld activities
by moving into white-collar crime such as mortgage and investment
frauds, says a new report by the province's top organized crime
investigators.

In its latest annual report released Thursday, the Criminal
Intelligence Service Alberta says Asian-based groups remain the most
violent in the province -- and are quickly becoming the most
sophisticated, with drug distribution networks it calls "second to
none."

Already responsible for the majority of the marijuana growing
operations in the province, Asian groups are now trafficking highly
addictive crystal methamphetamine in Alberta.

The move, said CISA operations co-ordinator Gary Buss, yields power
and money from various illicit markets.

"What we're starting to see is the groups being more diverse," said
Buss.

A retired RCMP inspector, Buss said organized crime groups seem to
have figured out that overt violence among various factions only
hampers future illegal activity.

By working together, all the groups can benefit from illicit drug
sales, weapons trafficking and extortion, he said.

"There's starting to be some co-operation," he said. "They can sort of
help each other. . . ."

By collaborating with members of outlaw motorcycle gangs, such as the
Hells Angels, "there may be some level of co-operation, or at least
business arrangements," between groups, the report states.

Asian organized crime groups represent the majority of street-level
cocaine trafficking in major Alberta cities, it says.

Police were able to disrupt, but not dismantle, two enemy Asian street
gangs last year after Project Synergy led to the arrest of 114 people
believed responsible for at least 15 violent incidents, including two
murders.

"We certainly had an impact on some of the more violent criminal
networks in Calgary and I think we were successful in dismantling the
one that was behind all of this," said Insp. Brian Skeet of the
Calgary police organized crime control section.

According to the report, the groups were involved in drug and weapons
trafficking, extortions, home invasions, prostitution, high-end
gambling and money laundering.

Many of the major players, including mastermind Minh Truong, 47,
pleaded guilty to several serious charges and remain behind bars.

"(Synergy) was a disruption to the overall picture, but it would be
naive to think there weren't other people stepping in to pick up the
slack," Skeet said.

While CISA continues to believe Asian groups are the dominant criminal
element in Alberta, investigators across the province are tracking the
activities of several other organizations.

Eastern European groups, the Italian Mafia, Jamaican and Middle
Eastern syndicates are involved in a variety of rackets and have ties
beyond the province's borders.

CISA has documented eastern European groups involved in drug
trafficking, frauds, vehicle scams, extortion and money laundering --
though the agency says the criminals are shrewd about conducting their
dirty dealings discreetly.

"One of the Calgary groups is known to be associated to a significant
EEOC group in Vancouver and there are indications that another Calgary
group is associated at a lower level to this same network," the report
says.

Law enforcement agencies have identified three Mafia families
operating in Alberta -- what CISA refers to as "traditional organized
crime" -- involved in prostitution, illegal gambling, fraud and theft.

Organized crime investigators say Mafia families are co-operating with
biker gangs and Eastern European groups when it suits their needs.

Alberta Solicitor General Heather Forsyth said new law enforcement
agencies geared toward larger criminal activities -- such as the
Integrated Response to Organized Crime team -- will continue to get
financial support from the province.

"There's no question that Alberta is leading the pack on this,"
Forsyth said on Thursday. "That's why it was important for me to get
money for policing."

In 2003, IROC received $3.2 million from the province, with an
additional $10 million over the next two years. CISA got another $2.4
million for its 2004 annual budget.