Details of an alleged attempt to smuggle large amounts of cocaine from Mexico to Canada are laid out in a civil forfeiture lawsuit against three men who lived together in a luxurious Surrey house
The Sinaloa drug cartel worked closely with three Surrey men in an attempt to smuggle large amounts of cocaine from Mexico to Canada last year, the B.C. government is alleging.
Details of the unsuccessful drug operation are laid out in a B.C. civil forfeiture lawsuit filed Tuesday against James Sclater, Hector Chavez-Anchondo and John Whalen Jr., who lived together in a luxurious Surrey house raided by the RCMP last September.
The lawsuit alleges the three men “are members of, and co-conspirators within, the same drug trafficking organization,” which the lawsuit calls a DTO.
“The DTO used and uses violence, or the threat of violence, to achieve its aims,” the director of civil forfeiture alleged, adding that the unnamed gang traffics ketamine, methamphetamine, alprazolam, oxycodone, MDMA and fentanyl, among other controlled substances.
Since June 2021, Sclater, Chavez-Anchondo and Whalen Jr. “have conspired and have attempted to import into Canada and distribute bulk cocaine from Mexico.”
“As part of these efforts, the DTO has agreed to, and made arrangements to, purchase the cocaine from the Cártel de Sinaloa (‘Sinaloa Cartel’) in Mexico,” the lawsuit said, noting that “the Sinaloa Cartel is a terrorist entity, and the government of Canada listed it as such on 20 Feb. 2025.”
The group’s smuggling efforts were delayed after Sclater was treated for cancer, the director said.
“As Mr. Sclater’s health improved, the DTO renewed its efforts to import and distribute cocaine. These efforts included negotiating with head of the Sinaloa Cartel, Ismael Garcia,” who is known as El Mayo.
The group hit another roadblock when El Mayo was arrested last July by U.S. law enforcement.
“Following El Mayo’s arrest, the DTO commenced negotiations with other parties, known only to the members of the DTO and unknown to the plaintiff, towards the importation and distribution of cocaine in Canada,” the director alleged in his 18-page case.
Each of the three defendants “contributed money on behalf of the DTO, which money was paid to the unknown party to secure the drug shipment,” the case said.
On Sept. 12, 2024, all three went to “a location to pick up what they expected to be their shipment of imported cocaine.”
“They were ultimately unable to locate their transportation connection and did not acquire the cocaine.”
Federal RCMP investigators search Sclater’s house on Sept. 23.
“During the search, the RCMP located hidden storage compartments containing controlled substances, cash, firearms and jewelry,” the lawsuit alleged.
Police seized 23 firearms — 10 handguns, two sawed-off shotguns, two hunting rifles, nine “assault” rifles, including two screw-on sound suppressors, and a speargun, the lawsuit said.
Ketamine, methamphetamine, fake Xanax and oxycodone pills were found in hidden compartments in the house. MDMA and fentanyl were also found, as was the cash.
“The money was bundled or packaged in a manner not consistent with standard banking practices,” the lawsuit said.
The criminal activity alleged includes possession for the purpose of trafficking, trafficking, possession of the proceeds of crime, money laundering, participation in the activities of a criminal organization, laundering the proceeds of crime for a criminal organization, various firearms offences, and attempt to import into Canada a controlled substance.
“Each of the defendants was aware that the property was the proceeds of unlawful activity,” the lawsuit alleged, adding that “Sclater did not have sufficient legitimate income to acquire the 77th Avenue property, and some or all the funds he used to acquire and/or maintain the 77th Avenue property were proceeds of the unlawful activity.
“The 77th Avenue property was also used by as an instrument of unlawful activity, by facilitating the laundering of proceeds of crime,” it said.
None of the three has been charged criminally, though the lawsuit says Sclater “has a criminal record that includes mischief, possession of a controlled substance and possession of a controlled substance for the purpose of trafficking.”
The RCMP’s federal serious and organized crime unit announced some details of its investigation into the group last November.