In April 2017, the Canadian authorities unveiled charges against Farzam Mehdizadeh, a currency exchange operator, tying him to a transnational network implicated in laundering funds for criminals and extremist groups. However, by the time officials moved to prosecute him, Mehdizadeh had already vanished from Toronto while under police surveillance.
Despite a prolonged three-year investigation, Mehdizadeh fled Canada, leaving the legal case hanging. His whereabouts in Iran, presumed to be his final destination, remained elusive to law enforcement and journalists alike. New revelations about Mehdizadeh emerged during the espionage trial of Cameron Ortis, a former intelligence director with the Royal Canadian Mounted Police (RCMP), convicted of breaching the Security of Information Act.
According to OCCRP, the Mehdizadeh case highlights Canada’s struggles to tackle transnational organized crime, in part because of the sluggish pace of its justice system, said retired senior RCMP officer Calvin Chrustie.
“It’s extremely difficult to lay a charge, as it was perhaps in this case,” said Chrustie, who has worked on similar investigations. “And then it’s extremely difficult, borderline impossible, to get a conviction”.
Ortis, found guilty of sharing confidential details related to ongoing investigations, had connections with individuals associated with the money laundering ring, including Mehdizadeh. However, concrete evidence proving direct information sharing between Ortis and Mehdizadeh was absent.
The “Five Eyes” intelligence alliance, comprising the US, Canada, UK, Australia, and New Zealand, scrutinized Mehdizadeh as part of their investigation into the global money laundering network. Mehdizadeh, among several suspects residing in Canada, was a focus of this international probe.
The legal process in Canada faced criticism due to its delayed actions and challenges in swiftly laying charges. The intricate disclosure laws demanding extensive information for defense lawyers prolonged the preparation of Canadian cases, unlike in partner countries within the Five Eyes alliance.
Mehdizadeh’s arrest in 2016, followed by a year-long gap before charges were brought against him, allowed him to depart Canada aboard a flight bound for Germany. Observations by law enforcement detailed Mehdizadeh liquidating assets and closing business operations in preparation for his departure.
Documents from the case highlighted Mehdizadeh’s involvement in a traditional “hawala” money transfer system, enabling him to move funds globally discreetly. His frequent travels to Iran, Panama, and the UAE, along with the closure of his Toronto-based business, signaled his intention to leave Canada.
Efforts to contact Mehdizadeh through various channels, including his son and former lawyer, yielded no success. His apparent silence in Iran remained evident from the lack of mentions on local news or social media platforms, further complicating efforts to trace him.
Evidence from the Ortis trial shows Canadian authorities zeroed in on Mehdizadeh after a September 2014 meeting in Vancouver of the Five Eyes Law Enforcement Group.
At that gathering, the intelligence allies agreed to share information about the global network run by Altaf Khanani, a Pakistani national who would be sentenced three years later in the US for conspiracy to commit money laundering.
Khanani’s clients included Chinese organized crime, Latin American cocaine cartels, the Taliban, al-Qaeda, and the Iran-backed militant group Hezbollah, according to the US Department of Treasury.
Mehdizadeh was allegedly one of Khanani’s agents in Canada, and internal police emails show that authorities were keen to convict him at home rather than in the US.
“Personally I’m pleased to see that (the Ontario RCMP division) appears to be committed to go after MEHDIZADEH with the view of laying charges in Canada, versus simply assisting a US investigation,” wrote one officer.
Mehdizadeh was arrested on April 17, 2016, after being stopped while driving from Montreal to Toronto with more than 1 million Canadian dollars stuffed into a bag in the trunk of his car.
Mehdizadeh had been surveilled picking up the cash “from a person with known ties to organised crime,” according to the police affidavit from the case against him. Police questioned Mehdizadeh, searched his home and business, and confiscated financial records, but ultimately released him pending charges.
Over the next year, Mehdizadeh remained free as the wheels of justice turned slowly. On April 19, 2017, charges were finally approved against him, and an Ontario provincial arrest warrant was issued the same day.
But Mehdizadeh had already taken the flight to Germany on April 8, according to the police affidavit, which was submitted as part of an application for a Canada-wide arrest warrant. The affidavit states that Mehdizadeh had “probably returned to reside in Iran”, where he had maintained citizenship after emigrating to Canada in 2003.
The legal pursuit against Mehdizadeh hit a standstill, with Canadian authorities deeming him a “flight risk” who had absconded and might never return to face justice.
This case sheds light on the intricate challenges in prosecuting transnational crimes, underscored by the difficulties in apprehending and convicting individuals like Mehdizadeh, who strategically navigate legal systems to evade accountability. As the pursuit for justice continues, Mehdizadeh’s evasion underscores the complexities in combating global organized crime networks, leaving Canadian authorities in a frustrating limbo of unresolved justice.
