March 10, 2011 4:01 PM

http://www.calgaryherald.com/news/Alberta+authorities+convict+Ontario+money+laundering/4418301/story.html

Authorities in Alberta have registered their first conviction under federal anti-money laundering legislation today after a man pleaded guilty to trying to smuggle nearly $500,000 into the country.

Joseph Dale Butler of St. Thomas, Ont. turned himself in earlier today in connection with the case, which dates back to 2009.

Butler, 35, pleaded guilty in a Calgary court to one count of laundering proceeds of crime under the Criminal Code, and a count of failing to report the importation of currency over $10,000 — an offence under the Proceeds of Crime and Terrorist Financing Act.

It was the first time authorities in this province laid money under the money laundering act, which came into force in 2003.

Butler was entering Canada at the Coutts crossing south of Lethbridge when the Canada Border Services Agency found $477,050 US stuffed inside a duffel bag hidden in a secret compartment built into a horse trailer.

Border officers became suspicious when Butler’s answers to routine questions were inconsistent, prompting them to subject him and his pickup truck and trailer to a more thorough inspection.

“This was a very good case for us,” CBSA spokeswoman Lisa White said.

The Coutts case remains the largest seizure of undeclared cash ever intercepted at a Prairie border crossing,

The Proceeds of Crime and Terrorist Financing Act requires anyone entering Canada to disclose if they’re carrying any amount of cash larger than $10,000.

Although enacted in part to combat terrorism after the 9/11 attacks of 2001, the legislation is also designed to prevent organized crime groups from hiding profits earned by illegal rackets. Cash from drugs and prostitution is often “laundered” through investments in legitimate businesses. Investigators believe the money seized at Coutts is tied to the cross-border drug trade.

Butler is scheduled to be sentenced in Calgary on May 25.

In the meantime, he has been allowed to return to his home in St. Thomas, where he must abide by a curfew and report regularly to the Ontario Provincial Police.