RCMP Update: Major Project Bustle Drug & Money Laundering Case
RCMP Federal Policing – Eastern Region has reported a significant development in Project Bustle, a three-year investigation into an organized crime network trafficking cocaine between provinces and laundering illicit proceeds in Newfoundland and Labrador. Stephen Kelly, 45, one of four people charged in the case, has entered guilty pleas to multiple drug trafficking and financial crime offences.
The investigation involved coordinated enforcement activity across several communities, including St. John’s, Appleton, Humber Valley and Gander. Kelly’s guilty plea was recorded on April 27, 2026, and he is scheduled to return to Corner Brook Supreme Court for sentencing proceedings beginning on September 28, 2026.
Official RCMP Case Details
Project Bustle was described by investigators as one of the largest money laundering files undertaken by the RCMP in Newfoundland and Labrador, with more than $1 million in illegal income identified. As part of the operation, officers executed search warrants in several communities and dismantled key elements of an interprovincial cocaine distribution and laundering network.
During the execution of search warrants in St. John’s, Appleton, Humber Valley and Gander, RCMP officers seized:
- Approximately eight kilograms of cocaine
- More than $173,000 in cash
- 1.7 kilograms of illicit cannabis
- A quantity of contraband tobacco
- Drug paraphernalia and items associated with trafficking operations
- A Range Rover SUV
- An Acura SUV
- A 2013 Yamaha SX 210 twin-engine boat
- A 2013 Shore Lander boat trailer
- A quantity of gold coins
- A quantity of gold bars
- High-end jewellery
- Encrypted cellular phones
Stephen Kelly was one of four individuals arrested and charged in relation to this complex investigation. On April 27, 2026, he pled guilty to the following offences:
- Conspiracy to traffic cocaine
- Possession of cocaine for the purpose of trafficking
- Trafficking cocaine – four counts
- Possession of property obtained by crime over $5,000 – five counts
- Laundering the proceeds of crime
According to RCMP Federal Policing, disrupting organized crime, large-scale cocaine distribution, and associated money laundering has a direct impact on community safety across the province. Their mandate in Newfoundland and Labrador includes addressing transnational and serious organized crime, national security–related offences, and cybercrime throughout their police areas and federal policing jurisdictions in Canada.
CrimeCanada.ca Safety Perspective
From the perspective of CrimeCanada.ca, Project Bustle highlights how organized drug trafficking and money laundering can quietly affect communities across Newfoundland and Labrador—from major centres like St. John’s to smaller communities such as Appleton and Humber Valley. Large quantities of cocaine and illegal cash move through local neighbourhoods long before a major enforcement action becomes public.
Illicit drug markets are closely tied to other crime, including property offences, violence, and financial exploitation. Community safety is strengthened when residents promptly report suspected stash houses, unusual short-stay traffic at homes, or unexplained high-value assets that appear inconsistent with known income. When in doubt, residents should contact local police or Crime Stoppers anonymously. Staying informed through ongoing community safety alerts and crime updates helps people recognize patterns and risk factors in their own neighbourhoods and supports a safer province for everyone.
Official Source & Community Safety
This safety alert is based on an official release from the Royal Canadian Mounted Police (RCMP). CrimeCanada.ca aggregates and analyzes this data to keep the newfoundland-and-labrador community informed, aware, and safe. We are an independent safety data aggregator and not the original creators of the underlying incident report.
Read the full official release here: RCMP Official Statement.