Calgary police have concluded a complex three-year investigation into alleged money laundering from the proceeds of sales of illegal steroids, with charges against four individuals.

Police have alleged that the owner and operators of Pareto Pharmaceuticals made more than $9 million in illegal profit from the sale of anabolic steroids, and then laundered those proceeds through the purchase of real estate and cryptocurrency.

The investigation involved looking at more than 150 bank accounts connected to Pareto Pharmaceuticals, various shell companies, security investments, purchases of cryptocurrency, and the purchases and sales of real estate.

“Identifying sources of illicit income often leads to the revelation of other criminal activity and networks used to perpetuate elaborate crimes,” said Staff Sergeant Geoff Gawlinski with the Calgary Police Service Economic Crimes Unit.

“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.”

CPS investigators worked with the RCMP, Vancouver Police Department, Canada Post, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Public Services and Procurement Canada’s Departmental Oversight Branch Forensic Accounting Management Group (FAMG), and private firms Chainalysis and Altia.

Millions in products seized by police

Police previously executed search warrants in December of 2022 in Calgary, Chestermere, and Vancouver which at the time saw police seize 82.3 kg of anabolic steroid powder, 3,174 vials of saleable anabolic steroids, 233,388 anabolic steroid pills, 355,643 Canadian Food and Drug Act regularly lated pills, 29 kg of Food and Drug Act regulated substances, and 289 kg of other raw materials used in the production of products.

The total estimate for the substances seized was in excess of $8 million.

“As the investigation continued, police located a manufacturing lab where pills and injectables were being made illegally. Raw anabolic steroids and other supplies were intentionally shipped to Calgary using fake names,” said SSgt. Gawlinski.

“The four suspects would then use fake identities to pick up the shipments and bring them back to the manufacturing lab.”

Also seized was $589,585 in cash, along with an approximate half-million dollars in jewelry.

“With any drug you’re buying, not from a regulated agency, you don’t know what the quality control is. You don’t know what the sanitary conditions are being produced in,” said SSgt. Gawlinski.

“Also, minors are able to access these websites and purchase this product. So there’s a lot of safety concerns that were in front of us.”

Fraser Landeen, George Elias Haddad, Spencer Jonathon Rivers, were charged by police with conspiracy to commit an indictable offence, laundering the proceeds of crime, trafficking of a controlled substance, possession of proceeds of crime, possession of a controlled substance for the purpose of trafficking and production of a controlled substance.

Angela Li was charged with charged with trafficking of a controlled substance, possession of a controlled substance for the purpose of trafficking, possession of the proceeds of crime and production of a controlled substance.

All four individuals are to appear before the court on Jan. 12, 2023.

Archived websites show products on Controlled Drugs and Substances Act were for sale

The service alleged that Pareto Pharmaceuticals sold products that were prohibited under the Controlled Drugs and Substances Act, and restricted products under the Food and Drugs Act through a pair of websites, and directly through gyms.

In a web archived version of one of the websites from Jan. 28, 2022, the company wrote about itself saying “Pareto Pharmaceuticals is an online store of Growth Hormones (HGH), Sexual Aids and Cycle Support supplements. We do not encourage the use of any medications mentioned on this website if they are illegal in that athlete’s Country of jurisdiction,” the site read.

“The information presented here should not be considered medical recommendation in any way. We guarantee 100% client satisfaction, and it is the reason Pareto is at the forefront of Canadian Anabolics scene.”

Among the items advertised for sale by Pareto Pharmaceuticals on that website were items listed under Schedule IV of the Controlled Drugs and Substances Act, including Metribolone, Metenolone (under the brand name Brimobolan), Oxymetholone (under the brand name Anadrol), Oxandrolone (under the brand name Anavar), and Metandienone (under the brand name Dianabol).

The company also had a variety of selective androgen receptor modulators—more commonly known by their acronym SARMs—for sale. The use of SARMs in Canada is not approved for any use and has not been reviewed by Health Canada for safety.

A public advisory issued by Health Canada in 2020 outlined the dangers that class of products poses to users, including heart attacks, strokes, and liver damage. The latter was detailed in a case report where a 32-year-old man developed severe liver injury after using Ligandrol, one of the products indicated for sale by Pareto.

The company promoted the use of SARMs on its website as a “safe alternative to steroids,” stating that the products have minimal effects on tissues other than bones and muscles—a statement that contradicts medical evidence of the harm by SARMs.