NASCAR driver busted (Update)
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| Derek White |
Derek White has been suspended indefinitely by NASCAR following his arrest on tobacco smuggling charges last week.
The 45-year-old Canadian is facing seven charges arising from a joint U.S./Canadian investigation into a scheme centered around illegally importing tobacco into Canada from the United States.
An updated list of contraband seized in raids connected to the case included more than 116,000lb of tobacco, representing fraud of around $13.5 million, as well as $1.5 million in Canadian dollars, over $3 million in USD, over 1800lb in cocaine, almost 50lb of methamphetamine, 35lb of cannabis, and 100g of Fentanyl.
A statement issued by Canadian authorities said that the smuggling organization had made at least 158 shipments into Canada between August of 2014 and March, 2016, for a total of 2240 tons of tobacco. The total value of the fraud is more than $530m.
Owner/driver White has made 22 starts in the XFINITY Series with a best finish of 18th in Montreal in 2012, and made his sole Sprint Cup appearance at New Hampshire last year, when he finished 39th.
03/31/16 NASCAR driver/owner Derek White turned himself into authorities Wednesday and faces seven charges in connection to the biggest tobacco-smuggling bust in North American history, NBC Sports has learned.
Sgt. Daniel Thibaudeau of the Quebec Provincial Police told NBC Sports that White was being interrogated Wednesday. White, who turned himself in after learning of an arrest warrant in his name, was expected to be arraigned Wednesday night.
Canadian officials, along with assistance from the U.S. Drug Enforcement Administration and Homeland Security, launched the investigation in 2014, Thibaudeau said. Nearly 60 individuals were arrested and nearly 70 searches took place Wednesday. About 700 officers from Canada and the U.S. were involved.
White, 45 and from Kahnawake, Quebec, Canada, became the first Native American driver in the Sprint Cup Series when he raced at New Hampshire Motor Speedway last July. He finished 39th in the 43-car field.
He has made 22 career Xfinity starts from 2012 to this year. He finished last in the 40-car field March 5 at Las Vegas Motor Speedway and failed to qualify for the season-opening race at Daytona International Speedway. White, who owned his team, drove in 13 Xfinity races last year with a best finish of 22nd at Daytona.
White also ran in six Camping World Truck Series races between 2009-14.
Thibaudeau said that the investigation has proof of at least 158 transports of illegal tobacco from North Carolina to Canada from 2014-16. He said about 2,294 tons of tobacco were transported. Thibaudeau said that would lead to about $530 million Canadian in taxes not paid.
Bloomberg reported that the organization bought shipments of tobacco leaf in North Carolina and trucked them to Canada where they were resold. Profits were used to purchase cocaine and some of the money was laundered overseas. By not declaring the tobacco at the border, no taxes were paid.
Thibaudeau said that the seven charges White faces are:
Three counts of conspiracy to commit fraud against the government
Three counts of fraud toward the government
One count of profiteering as a criminal organization
Among the items seized in the various searches Wednesday were:
More than 1,800 pounds of cocaine
About 46 pounds of methamphetamine
Thirty-five pounds of cannabis
100 grams of fentanyl
More than $1.5 million Canadian in cash
More than $3 million U.S. in cash
In a statement, Captain Frederick Gaudreau, Chief of the crime investigation against the State of the Surete du Quebec, said: “The MYGALE project is the largest ever made to date in America on tobacco smuggling, but also on cross-border crime between Canada and the United States.’’