Two men are facing numerous charges after the Alberta Gaming and Liquor Commission seized an estimated $600,000 in contraband tobacco.
The estimate is based upon lost tax revenue that would have been generated from legitimate sales.
Officials seized more than 1,600 kilograms of contraband waterpipe tobacco and more than 400,000 contraband cigarettes after executing search warrants on two Edmonton locations and vehicles in March.
The two men were charged with fraud over $5,000 as well as charges under the provincial Tobacco Tax Act.
Both will appear in Edmonton Provincial Court on May 15.
Anyone who imports or wholesales tobacco products in the province must be licensed and all tobacco products must be labelled according to federal and provincial labels.
In 2012-2013, provincial revenue from tobacco taxes totalled $912 million.