Crime
Veteran RCMP Investigator Warns of Coordinated Hybrid Warfare Targeting Canada
Sam Cooper
Central to this strategy is fentanyl—a substance whose reach now extends far beyond Canadian borders.
Fentanyl overdoses. Dirty money flooding real estate. Election interference. Foreign-backed antisemitism igniting across Canadian campuses. These are not isolated crises, warns Calvin Chrustie, a veteran RCMP national security and transnational crime investigator. They are interlinked weapons in an accelerating campaign of hybrid warfare targeting Canada—one that is hollowing out state institutions, fracturing social cohesion, and damaging our alliances. In the view of Chrustie, like other North American experts recently interviewed by The Bureau, adversarial regimes are exploiting Canada’s systemic vulnerabilities to destabilize the country from within, with consequences extending into the United States, Australia, the United Kingdom, Taiwan, Japan, and beyond.
In a sweeping interview with the Macdonald-Laurier Institute, Chrustie laid out a sobering account of how foreign states—chiefly China and Iran—are combining their intelligence capabilities with organized crime networks and proxies such as Mexican cartels to exploit Canadian systems. The Bureau has analyzed Chrustie’s comments and connected them to broader findings in its investigations into transnational crime and state-sponsored influence operations.
At the heart of Chrustie’s warning is a shift in how adversaries like China and Iran operate. No longer relying solely on spies or cyberattacks, they are weaponizing organized crime—leveraging fentanyl trafficking, corruption, and influence operations to destabilize democracies.
“Hybrid warfare is the blending of military and non-military means to weaken or destabilize a target,” Chrustie explained. “For hostile states, transnational crime is a tool—just like cyberattacks or disinformation. China, Russia, Iran, North Korea—the CRINKs—use TOC to raise money, create chaos, and undermine our institutions. TOC is no longer just criminal—it’s geopolitical.”
Fentanyl, in this context, is not only a public health catastrophe but a deliberate weapon.
“It’s about destabilizing communities, overwhelming public services, and hollowing out social cohesion,” he said. “Just like the Soviets used propaganda and the KGB used disinformation, modern adversaries use drugs, money laundering, and crime networks to erode their adversaries from within.”
This erosion now extends beyond physical harms into the social and political realm. Chrustie pointed to radical protest movements and the rise in antisemitic incidents on Canadian campuses as evidence of convergence between TOC and foreign influence operations.
“These aren’t disconnected trends,” he said. “The same threat actors behind fentanyl and money laundering are often involved in radicalization efforts. Iranian networks, for example, have long been tied to money laundering and extremist financing. And those networks are not operating in isolation. They’re aligned with China and the Mexican cartels.”
Chrustie argued that radical activism and identity-based polarization are being amplified not just by ideology, but by illicit foreign-backed financing and digital manipulation. “We’re talking about convergence,” he said. “These networks exploit every vulnerability—from public health to political discourse. Failing to connect the dots between TOC, extremism, and foreign interference means we’re always reacting too late.”
Central to this strategy is fentanyl—a substance whose reach now extends far beyond Canadian borders. “There’s no denying the scale of fentanyl production in Canada. It far outpaces our internal consumption,” he said. “We know Canadian labs are supplying Australia in large quantities. And we don’t know how much is crossing into the U.S.—because we’re not meaningfully tracking it. That lack of visibility alone is a serious national security concern.”
Seizures at the border are not the solution, Chrustie argued, because they’re not the full picture. “The U.S. has robust systems for this. Canada doesn’t,” he said. “So pointing to low seizures as proof of safety is misleading—it really just tells us what we’re not seeing.”
And what we’re not seeing, he says, includes deeply compromised infrastructure. “They exploit Canada’s weaknesses, especially in places like Vancouver, where strategic assets such as ports, shipping companies and supply chain infrastructure are key hybrid warfare targets,” he said. “The intent is to target North America through Vancouver-based assets, because it’s a lower-risk operating environment.”
The financial flows enabling this system are equally opaque—and equally dangerous. Chrustie cited the HSBC cartel laundering scandal, which led to a $1.9 billion U.S. settlement, as a historic warning that was never heeded. “The same cartel networks that emerged through the HSBC probe are engaged in Canada today,” he said.
“At one point, more encrypted communication companies linked to TOC and terrorist financers were based in Vancouver than anywhere else in the world,” he added. “These platforms were used globally—by cartels, arms traffickers, terrorists, state proxies. That tells you all you need to know about how Canada is perceived by adversaries.”
So why is Canada such a prime target? Chrustie identifies four layers of failure: strategy, structure, systems, and culture.
“We lack a cohesive, public national security strategy,” he said. “Unlike the United States or Australia, Canada doesn’t clearly define TOC as a strategic national threat. We don’t have a single, unified doctrine coordinating our federal agencies—police, intelligence, border services, foreign affairs. And TOC thrives in those gaps.”
“Our institutions are siloed,” he continued. “Policing is on the front line, but CSIS, CBSA, military and CSE aren’t always integrated. Right now, the RCMP is expected to shoulder most of the burden. But that’s unsustainable. We need an all-agency model.”
Canada’s legal and regulatory systems are another weak point. “Our legal system is designed for a domestic, rule-of-law environment. It’s ill-suited to confront global adversaries who don’t play by those rules,” Chrustie said. “Disclosure rules from Stinchcombe, Charter constraints, and evidentiary burdens mean that complex prosecutions often fall apart or never proceed.”
Finally, Chrustie warned that Canadian political culture is its most underappreciated vulnerability. “Canadians are culturally indifferent to national security,” he said. “We’ve taken a maternalistic approach—shielding the public from harsh realities, hoping to avoid panic or xenophobia. But that silence has allowed foreign actors to operate here with little resistance.”
“The historical paternalist approach of governments and bureaucrats—‘we won’t discuss these issues in public, we are the experts’—that thinking is outdated,” he said. “China, Russia, Iran and North Korea are the biggest fans of that mindset.”
Asked what a real solution looks like, Chrustie offered a sweeping and urgent framework: a national strategy naming hostile states and TOC as geopolitical threats; centralized agency coordination; intelligence-led disruption operations with allies abroad; and legal reforms enabling proactive countermeasures.
“We either need carve-outs with enhanced powers for TOC-related and foreign threat investigations—or we rely more on foreign-facing disruption efforts and accept that prosecutions are secondary,” he said.
He also emphasized grassroots engagement. “The solutions are in the communities, not in the siloed offices of governments,” Chrustie said. “We need to engage business leaders, civic organizations, educators, and diaspora communities. We need to build national resilience—not just enforce laws after the damage is done.”
His closing warning was as stark as his opening diagnosis.
“Canada is a saturated and vulnerable target,” he said. “And until we stop treating this as a criminal justice problem and start treating it as an integrated national security emergency, we will continue to lose ground.”
“There is no room for spectators.”
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Crime
National Health Care Fraud Takedown Results in 324 Defendants Charged in Connection with Over $14.6 Billion in Alleged Fraud
By A 50-district dragnet uncovers transnational fraud, AI-driven deception, and systemic theft from Medicare, Medicaid, and U.S. taxpayers totaling over $14.6 billion
The Department of Justice announced Monday the outcome of the 2025 National Health Care Fraud Takedown, the largest coordinated enforcement action against health care fraud in U.S. history. Federal prosecutors have filed criminal charges against 324 individuals across 50 federal judicial districts and 12 State Attorneys General’s Offices, including 96 licensed medical professionals—among them doctors, nurse practitioners, and pharmacists. The defendants stand accused of orchestrating fraudulent schemes amounting to more than $14.6 billion in intended losses to Medicare, Medicaid, and other federally funded programs.
This historic enforcement action more than doubles the previous national record of $6 billion. As part of this effort, federal and state authorities have seized over $245 million in cash, luxury vehicles, cryptocurrency, and other high-value assets. The Centers for Medicare & Medicaid Services (CMS) separately reported that it successfully prevented more than $4 billion in fraudulent payments in the months leading up to the Takedown. CMS also confirmed that it suspended or revoked the billing privileges of 205 providers linked to fraudulent activity. In the civil domain, federal agencies filed actions against 20 defendants tied to $14.2 million in alleged fraud and finalized civil settlements with an additional 106 defendants, totaling $34.3 million in recovered funds.
The Takedown was led by the Health Care Fraud Unit of the DOJ Criminal Division’s Fraud Section and carried out in close coordination with U.S. Attorneys’ Offices nationwide, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and multiple state law enforcement agencies. Medicaid Fraud Control Units in 18 states also played a central role in investigating and prosecuting the cases.
In remarks accompanying the announcement, Secretary of Health and Human Services Robert F. Kennedy Jr. emphasized that the agency would aggressively work with law enforcement to eliminate the “pervasive health care fraud that drove up costs and harmed patients under the former administration.” Attorney General Pamela Bondi echoed the urgency, calling the action “justice delivered to those who steal from taxpayers and endanger lives.” Matthew R. Galeotti, head of the Justice Department’s Criminal Division, underscored the gravity of the crimes targeted, noting that fraudulent schemes often lead not only to financial losses but also to direct patient harm, including medically unnecessary procedures and worsened addiction outcomes.
FBI Director Kash Patel emphasized that this Takedown represents the largest in the bureau’s history, highlighting the theft of more than $13 billion from federal health programs. Acting Inspector General Juliet T. Hodgkins of HHS-OIG described the scale of harm as unprecedented and reaffirmed the agency’s commitment to safeguarding the public.
Among the most significant components of this national operation was Operation Gold Rush, which uncovered a sophisticated transnational conspiracy responsible for over $10 billion in fraudulent Medicare claims. The scheme was orchestrated by foreign nationals who, acting as a coordinated criminal enterprise, acquired more than 30 medical supply companies across the United States. These companies had already been enrolled in Medicare, and were then used to funnel false claims for urinary catheters and other durable medical equipment. Stolen identities of over one million Americans were used to submit these claims, which had not been requested by patients, nor ordered by physicians.
The conspiracy relied on straw owners sent from Russia and Estonia to the U.S., who were directed by co-conspirators communicating through encrypted channels. Using fraudulent documentation, these straw owners opened U.S. bank accounts for laundering proceeds. Though the organization submitted over $10.6 billion in claims, CMS successfully blocked most of the payments. Only approximately $41 million reached the conspirators via Medicare, but approximately $900 million was disbursed by Medicare supplemental insurers before the fraud was detected.
Four individuals were arrested in Estonia and eight others were apprehended at major U.S. airports and border crossings as they attempted to flee. Law enforcement seized approximately $27.7 million in fraud proceeds from this operation.
Federal prosecutors filed related charges in five districts: the Central District of California, the Middle District of Florida, the Northern District of Illinois, the District of New Jersey, and the Eastern District of New York.
In a separate scheme centered in Illinois, the Department brought charges against five individuals, including two executives from Pakistani marketing firms, who used artificial intelligence to generate fake audio recordings of Medicare beneficiaries purporting to consent to receive medical equipment. This fraudulent data was sold to laboratories and equipment suppliers, which used it to file $703 million in false claims. Approximately $418 million was ultimately paid out on these claims, and the government has so far seized $44.7 million in related assets. The fraud involved not only AI-based deception but also the illegal sale and laundering of stolen personal health information.
Another case exposed a billing company executive based in Pakistan and the United Arab Emirates who conspired with addiction treatment centers to submit approximately $650 million in fraudulent claims to Arizona Medicaid. Some services billed were never rendered, and others were so deficient as to provide no therapeutic value. The operation targeted vulnerable individuals, including members of Native American tribes and the homeless. Kickbacks were paid for patient referrals, and the executive used at least $25 million in illicit funds to purchase a $2.9 million home in Dubai.
The Department also charged 49 defendants in connection with over $1.17 billion in fraudulent claims tied to telemedicine and genetic testing. In one Florida case, an owner of both telemedicine and durable medical equipment companies orchestrated a $46 million scheme involving deceptive telemarketing campaigns that generated unauthorized genetic testing and equipment claims. The Department continues to prioritize cases involving telehealth-based fraud, which often exploits unwitting patients through misrepresented or manufactured consent.
Prescription opioid diversion was another central focus of the Takedown. A total of 74 defendants, including 44 licensed medical professionals, were charged across 58 criminal cases for illegally distributing more than 15 million opioid pills. One Texas pharmacy alone was responsible for over 3 million of these pills, which included highly addictive substances such as oxycodone, hydrocodone, and carisoprodol. The DEA concurrently announced 93 administrative actions to revoke licenses and registrations of pharmacies and providers implicated in the unlawful handling of controlled substances.
Other cases include a $28.7 million scheme in Tennessee involving medications falsely billed to the Federal Employees’ Compensation Fund, where prescriptions were neither authorized by physicians nor dispensed as claimed. In separate indictments filed in Washington and California, medical providers were charged with stealing fentanyl and hydrocodone intended for pediatric patients under anesthesia.
The geographic scope of the Takedown was vast. In total, 189 federal cases were filed across all 50 federal judicial districts, and 91 state-level cases were brought in 12 states by participating Attorneys General. This unprecedented coordination underscores the national impact and bipartisan support for rooting out fraud in American health care systems.
To enhance ongoing efforts, the Department also announced the establishment of a new Health Care Fraud Data Fusion Center.
This joint initiative brings together specialists from the DOJ’s Health Care Fraud Unit, HHS-OIG, FBI, and CMS to leverage cloud computing, artificial intelligence, and large-scale data analytics to detect emergent fraud patterns. The Fusion Center aligns with Executive Order 14243, “Stopping Waste, Fraud, and Abuse by Eliminating Information Silos,” which mandates interagency cooperation and data-sharing to reduce redundancy and increase efficiency in enforcement.
Principal Assistant Deputy Chief Jacob Foster, Assistant Deputy Chief Rebecca Yuan, Trial Attorney Miriam L. Glaser Dauermann, and Data Analyst Elizabeth Nolte coordinated this year’s Takedown from within the DOJ’s Health Care Fraud Unit. Prosecutors from the National Rapid Response team and regional Strike Forces in 27 districts led casework alongside U.S. Attorneys’ Offices and 18 state Medicaid Fraud Control Units. Additional support came from the Department of Labor, VA-OIG, IRS Criminal Investigation, Homeland Security Investigations, the Defense Criminal Investigative Service, the Office of Personnel Management, the United States Postal Service OIG, and numerous other federal and local agencies.
Image sources: US DOJ
Quick Hit:
Two firefighters were killed and another wounded Sunday after a gunman opened fire on first responders tackling a blaze near Coeur d’Alene, Idaho. The shooter was later found dead, and authorities believe the fire may have been set to lure crews into an ambush.
Key Details:
- The ambush began around 2 p.m. local time as fire crews arrived at a brush fire and were met with sniper-style gunfire from a wooded area.
- SWAT teams located the deceased suspect roughly five hours later, with a weapon nearby. His identity has not yet been released.
- The Kootenai County Sheriff said the ongoing fire could not be addressed during the gunfight, calling the attack a “heinous direct assault” on first responders.
Diving Deeper:
A deadly ambush on Sunday afternoon left two Idaho firefighters dead and a third injured after they were shot while attempting to contain a brush fire on Canfield Mountain. The surprise attack reportedly began around 2 p.m., when bullets suddenly rained down on emergency crews from hidden positions in the wooded terrain near Coeur d’Alene.
Authorities now believe the blaze may have been deliberately set as bait. Kootenai County Sheriff Bob Norris described the situation as “an active sniper attack,” saying the scene quickly escalated into chaos with gunfire coming from multiple directions.
“We don’t know if there’s one, two, three or four [shooters],” Norris said in an early evening press conference. “I’m hoping that someone has a clear shot and is able to neutralize [the suspect], because they’re not showing any signs of surrendering.”
Roughly five hours after the first shots were fired, SWAT officers found a body next to a firearm along the Canfield Mountain Trail. Authorities have not confirmed whether the individual was the sole assailant, nor have they publicly identified the person. The FBI, along with state and local agencies, had been deployed to the scene to assist with the operation.
The two firefighters who died have not yet been named. The third, who sustained a gunshot wound, was transported to Kootenai Health and remains hospitalized. His current condition is unknown.
The firefight effectively halted efforts to contain the brush fire, which remained active late into Sunday. “It’s going to keep burning. We can’t put any resources on it right now,” Norris said during the standoff. Shelter-in-place orders were issued for the surrounding area, including the popular Canfield Mountain Trailhead, but those restrictions were lifted after the suspect was found dead.
Idaho Governor Brad Little reacted to the tragedy on social media, calling the ambush “a heinous direct assault on our brave firefighters.” He added, “Teresa and I are heartbroken. I ask all Idahoans to pray for them and their families as we wait to learn more.”
Federal and local officials are continuing to investigate the incident, including the origins of the fire and whether additional suspects may have been involved.
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