A judge has sentenced two Edmonton men caught with more than 2.7 million illegal cigarettes to three years in prison, describing their scheme as motivated by greed and causing significant harm to taxpayers.
Details of the Case
Justice Lisa Tchir of the Alberta Court of Justice handed down the sentence on June 8, 2026, to Atewebirhan Hab Ghirmu and Esays Teklom Okibmichel, who were arrested in 2023. The unstamped cigarettes, destined for corner stores, were discovered during surveillance by Alberta's Tobacco Enforcement Unit.
Tax Losses and Fraud
The total tax loss to taxpayers was $1,232,516.13, including nearly $781,000 to the Alberta government and about $452,000 in federal tobacco taxes. The judge noted the magnitude of the fraud was significant and required a prison term to deter others.
Surveillance and Arrest
Officers from the Alberta Gaming Liquor and Cannabis Commission monitored the warehouse of AE Global Wholesale Ltd. on September 26 and 27, 2023. They observed Ghirmu moving boxes between vehicles and transferring master cases of cigarettes—each containing 10,000 unstamped smokes—to a convenience store and a Mercedes.
The Crown sought a three-year sentence, while defense lawyers argued for house arrest. The judge emphasized that deterrence and denunciation demanded incarceration for the sophisticated, profit-driven scheme.
