“Project Panda,” a major Ontario gang taskforce takedown in May targeting a counterfeit tobacco factory on the Six Nations Reserve near Hamilton and Buffalo, exposes a long-ignored reality: Mexican cartel networks have deeply embedded themselves in Canadian territory near the U.S. border—and are expanding in tandem with Chinese state-linked crime partners, using Indigenous land for counterfeit production and cross-border smuggling.
This is no longer just a policing matter. It is a national security crisis—one that exploits Indigenous communities, land, and jurisdictional protections that have inadvertently shielded criminal networks now designated as terrorist threats. Worse still, the threat has long been known to Canadian, American, and Mexican authorities. Yet Ottawa has failed to act.
Stunningly, an explosive intelligence report released last year labeled Canada a
“safe zone” for Chinese and Mexican cartel networks to traffic weapons, drugs, and counterfeit tobacco through Six Nations land. “Mexican authorities have also stated that Canada is responsible for 12% of all the lost tax revenue for the Mexican Government from illicit cigarettes,” the report says, and alleges that “companies established in Six Nations have introduced up to 500 million cigarettes a year illegally into Mexico.”
That same report
says more than 73 illicit factories have operated over the past 20 years, linked to 173 organized crime groups, including Mexican and Chinese networks.
Heavily armed Ontario Provincial Police units, supported by multiple agencies, raided the factory and associated sites on May 1 and 7. The targets spanned Six Nations, Brantford, and Ancaster—territories sitting between Hamilton, Niagara Falls, and Buffalo. What they found was staggering: 1,360 pounds of illegal cannabis, 3.16 kilograms of psilocybin, 15 firearms, and large skids of counterfeit tobacco packaging, valued at over $3 million. The factory is surrounded by barbed fences and trailer trucks. One of the raids intercepted two vehicles leaving the site with 11.1 million contraband cigarettes worth another $2.8 million.
While Project Panda hasn’t, at least yet, addressed fentanyl on Six Nations land, a related investigation—Project Roll the Dice—carried out by Six Nations Police on May 2, 2025, did target fentanyl trafficking. Search warrants were executed at a Mississauga Road residence and vehicle on the Mississaugas of the Credit First Nation. Police seized 58 grams of fentanyl, 17 grams of cocaine, Canadian currency, drug packaging materials, digital scales, and multiple cellphones.
Project Panda drew scant attention from Canadian media, with coverage limited to local outlets. But
The Bureau’s document analysis and interviews with law enforcement sources reveal a deeper crisis: Canada’s national security vulnerability runs through southern Ontario and Quebec—stretching from the Six Nations of the Grand River, into Brantford, along the St. Lawrence, and directly to the U.S. border. This corridor has become a protected staging ground for Chinese organized crime, long embedded with the Hells Angels, now operating in concert with Mexican cartels.
Though the factories operate on Indigenous land, Ontario police
have made clear they are controlled by non-Indigenous organized crime syndicates.
“This investigation involved a tobacco manufacturing facility operated by members of a non-Indigenous criminal network who do not reside on the territory,” Project Panda investigators stated, adding that tobacco sales directly fund organized crime networks. The profits do not benefit local communities.
Confidential sources told
The Bureau that Mexican cartel operatives are behind the factories and reserve-based casinos. Their presence is enabled by jurisdictional grey zones, preferential tobacco tax exemptions, and a persistent political unwillingness in Ottawa to confront the threat.
Behind the Mexican cartels, as in Canada’s fentanyl superlab economy, loom Chinese Triads. Canadian intelligence has long warned of this dual-threat structure. Sources close to Project Panda confirm the violence is intensifying, with shootings and firebombings linked to cartel enforcement groups. Seizure evidence shows high-powered firearms and growing operational sophistication.
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