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 Frédérick Gaudreau, Chief of the crime investigation against the State of the Sûreté du Québec, 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.’’