Accused drug dealer planned to build campsite, launder money there, lawsuit claims

As an alleged drug dealer drove an undercover Mountie to a plot of land in Tolstoi, he revealed that he planned to use it to further his criminal enterprise.

“While en route to the vacant lot, the defendant (Kelvin) Loewen told the undercover officer that he had six acres of property that he wanted to turn into a campsite with a pool and that he wanted a ‘good way to launder money,’” says a lawsuit filed by the province’s director of civil forfeiture that reveals details of the 19-month investigation into a drug ring in southern Manitoba.

RCMP and Winkler police said in August that officers had charged more than a dozen people in relation to the drug-and-gun trafficking network. The joint investigation began in December 2024, when officers from the Winkler Police Service asked the Mounties for help after they had learned kilograms of cocaine were being imported to a local truck repair business.

Police expanded the probe, dubbed Project Dolor, as investigators learned other types of illicit substances and firearms were being trafficked by the network in a number of communities.

The lawsuit, filed in the Court of King’s Bench last week, shows officers followed the suspects and undercover agents bought drugs.

The filing names two of the more than dozen accused — David Andrew Penner, 47, of the Rural Municipality of Stuartburn, and Kelvin Lery Loewen, 33, of Thornhill, west of Morden, who are charged with cocaine trafficking and firearms offences — as defendants.

The lawsuit seeks to seize the men’s pickup trucks, about $8,200 in cash seized during the investigation, and the land in Tolstoi that’s owned by Loewen.

Officials allege the men used the trucks to deal drugs, while the cash and the land were obtained via criminal activity.

Justice officials say in the court filing that Winkler police became aware that Penner and Loewen were trafficking cocaine in December 2024. In addition, Penner is accused of selling illegal untaxed cigarettes.

Police officers on surveillance duty spotted Penner and Loewen doing what were believed to be drug deals — quick meetings in public parking lots that frequently involved an exchange of bags or packages — on several occasions, the court papers say.

In early May 2025, an undercover police officer got in touch with Loewen and asked to buy cocaine, the filing says.

Loewen arranged to meet the undercover officer at a rural location and when the Mountie arrived, Loewen invited him into his Ford F-150 and drove him to his lot in Tolstoi, the filing claims. Loewen bought the lot in June 2025 for $48,000.

Penner was at the lot when Loewen and the undercover officer arrived; he handed over four ounces of cocaine to the officer in exchange for cash, the court filing says.

Penner told the undercover officer that “his supplier is good to deal with and will take cocaine back if there is a quality issue, and… he makes most of his money, about $4,000 to $5,000 per month, selling ‘smokes,’” the court filing reads.

Later that month, the officer asked Loewen to buy a kilogram of cocaine and Loewen told him it would cost $38,000, the filing says.

The alleged trafficker met with the undercover officer in the parking lot of the Oak Bluff arena, where the officer handed over $38,000 in cash, the court papers say.

Loewen drove to Winnipeg in his pickup and met with the undercover officer in LaSalle two hours later to give him the cocaine, the suit alleges.

In July, police executed warrants at Penner’s home in Stuartburn and in relation to his truck, as well as Loewen’s shop buildings in Thornhill and his truck.

At Penner’s home and in a camper parked on the property, officers found cocaine, magic mushrooms, contraband cigarettes, drug packaging material, a scale, firearms and ammunition, as well as cash, the suit says.

At Loewen’s property, officers found more cash, a digital scale and nine cellphones, as well as a Mexican passport.

Also charged in the probe are 38-year-old Peter Harder and 36-year-old Jacob Harder, both of Winkler, who own the Winkler repair shop; Tyler Thorvaldson, 29, of Carman; Clayton Sprung, 26, of Manitou; Matthew Hofer, 40, of La Riviere; Shawn Wiegner, 41, of Winnipeg; Jonathan Riberio, 31, of Winnipeg; Tyson Hofer, 42, of Morden; Joey Foidart, 46, of Notre Dame de Lourdes; Lillian Hutsell, 37, of McCreary; and Tristian Provinciano, 39, of Winnipeg.

Two other Winnipeg men, aged 38 and 35, were arrested on suspicion of conspiring to traffic cocaine, but had not yet been charged as of late August.

erik.pindera@winnipegfreepress.com