A Manitoba man from the RM of Springfield, who was involved in high-level drug trafficking rings, has been arrested after RCMP Federal, Serious and Organized Crime investigators uncovered his illicit drug operations and money laundering crimes.

RCMP report that 39-year-old James Robert McGirr is facing numerous charges after police linked him to several different drug trafficking operations. The RCMP’s Project Divergent, concluded in March 2022, saw 22 individuals arrested for drug trafficking offences, and that investigation opened up avenues into other drug networks, kickstarting Project Decrypt, in which seven people were arrested.

In April 2021, Project Decrypt began by looking at the trafficking of large amounts of illicit cannabis. As the investigation progressed, investigators learned that McGirr had fraudulently acquired a Health Canada licence for a micro-grow operation. In addition, he was using legitimate personal Health Canada medical licences under the names of his associates to feed his criminal networks with the cannabis he was growing.

When investigators were looking at the proceeds of McGirr’s operation, they found that he was laundering his profits by converting cash to cryptocurrency. He did this by purchasing digital money, then transferring that money into a cryptocurrency account. Further, he helped others launder proceeds of crime cash into cryptocurrency.

On June 8, 2023, 10 properties associated to McGirr were searched in the RM of Springfield, Sunnyside, Navin, and seven in Winnipeg. Another property in Winnipeg was searched in August 2023. The searches resulted in the seizure of more than $6 million in drugs, equipment, and proceeds of crime. More than $3 million in property, more than $2 million in illicit cannabis, almost $700,000 in drug and cryptocurrency equipment, more than $203,000 in lifestyle items, more than $15,000 in Canadian currency, and seven firearms were seized during the searches.

McGirr was arrested at his residence in the RM of Springfield when the search was executed. Daniel Erenberg, 33, was arrested at the search of his residence in Winnipeg. Five of McGirr’s associates were arrested throughout the month of June in Winnipeg, and one in September.

“The suspect in this investigation was obtaining Health Canada medical cannabis grow licences through fraudulent means and growing vast amounts of illicit cannabis to sell through a criminal network, and then he was converting that ill-gotten cash into cryptocurrency to fund his lavish lifestyle and other criminal enterprise,” said Inspector Joe Telus, RCMP Intelligence Officer. “We see, through Project Divergent and Project Decrypt, how these networks feed off each other and are interconnected. We are not targeting legal users of cannabis. These large-scale operations are producing illicit product and feeding criminal networks, and the RCMP will continue to work tirelessly to disrupt those networks.”

McGirr is facing five Cannabis Act charges and five Criminal Code charges, including Fraud Over $5000, Identity Fraud, Possession of Property Obtained by Crime, Laundering Proceeds of Crime, and False Pretenses.

Also involved and charged are the following:

  • Daniel Erenberg ran the medical grow operation and is facing charges under the Cannabis Act.
  • Jordan Fletcher, 33, of Ste. Anne, acted as a courier in the operation and is charged under the Cannabis Act.
  • Jamar Smith, 42, of Winnipeg, was a grower for the medical licence grow operation and is charged under the Cannabis Act.
  • Brett Little, 33, of Winnipeg, got the Health Canada micro-grow licence and is charged under the Criminal Code with Fraud Over $5000.
  • Raymond McGirr, 71 of Winnipeg, a relation to James McGirr, is facing firearms charges under the Criminal Code.
  • Michael Heckl Junior was a property owner where the illicit medical grow was taking place. His charges are stayed as he is now deceased.

Police say that all suspects have been released from custody pending court dates.

The RCMP acknowledges the support of its partners in this investigation: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Forensic Accounting Management Group (FAMG), Civil Property Forfeiture, and Seized Property Management Directorate.