Two arrested during police bust of Winnipeg magic mushroom store

Two people police allege were openly running an illegal magic mushroom store in Osborne Village are facing drug trafficking charges.

On Thursday, Winnipeg police gave an update on their investigation into the Magic Mush store in the 100 block of Osborne Street, which was selling psilocybin mushrooms earlier this month.

Insp. Elton Hall with the organized crime unit wasn't mincing any words when describing what was going on in the store.

"There is no grey area here. This is illegal and against the law, and we have an obligation to prevent this from happening," he said, calling the operation of the store drug trafficking.

He said the store was selling a lot of product very quickly, with police seeing about 200 people in and out of the store on Friday.

Later that day, officers with the Winnipeg police guns and gangs unit executed search warrants at the store as well as a home in the 300 block of Waterfront Drive and a vehicle police say is associated with two suspects.

Two people, whom police allege were involved in the operation of the store, were arrested at the business without incident.

The two people – a 37-year-old man and 37-year-old woman living in Winnipeg – are now facing two counts of trafficking a scheduled substance, and a single count each of possession of a scheduled substance for the purpose of trafficking and possession of proceeds of property obtained by crime over $5,000.

Police said both have been released on undertakings.

Representatives of the store have been pushing for the decriminalization of magic mushrooms in Canada. They previously suggested this is a safe way to sell the product and is having a positive impact on the community.

Hall said otherwise.

"People cannot arbitrarily break the law anytime they feel it is not fair or they don't agree with it. Law enforcement cannot be expected to turn a blind eye to lawlessness and allow individuals to openly traffic scheduled drugs in contravention of the controlled drugs and substances act," he said.

"This is not how law and order works in Canadian society. By taking no action, police allow the flood gates to open, jeopardizing the safety of many."

Hall said police believe the drugs were being shipped from another province to a home on Waterfront Drive before being transported to the store where they were packaged and sold. He raised several concerns about the operation of Magic Mush, saying the drugs were being packaged on the ground next to a pile of construction debris.

"It was dirty. I would describe it as disgusting quite frankly that drugs were being packaged right beside a pile of rubbish," he said, adding the fact that cash and drugs were on hand in the store also put everyone at risk.

"You are just advertising that you have money and drugs there. Drug rips happen in this city all the time, it is the underworld. Just because you have a door and window in front of you is not going to stop it."

During the search warrant, police seized an estimated $10,000 worth of drugs, including 39 bags of psilocybin, about 260 grams of loose psilocybin and various edible products and capsules. The drugs have been sent to Health Canada for testing.

During the warrants, police said officers also seized a 2018 Mercedes Benz, a bank machine, score sheets, a scale, packaging material, electronics, and around $16,600 in currency. When asked if the store was linked to any organized crime groups or drug networks, Hall would only say the investigation is ongoing.

Hall said while he believes there is merit to decriminalization of magic mushrooms, and even supports it, he said right now psilocybin is still identified as an illegal drug. He added drug trafficking is not the same as advocating for decriminalization.

The lawyer representing the store has said similar stores in Ontario were shut down by police, but reopened the next day and continued on.

Hall said if this store does reopen, police will shut it down again and lay more charges – and Hall said this time he would personally ask the Crown to keep those charged in jail.

CTV News has reached out to the lawyer representing the store, but has not yet heard back.