Toronto homicide detectives believe a north Scarborough home is where a reputed gangster was killed before his body was encased in a cement-filled barrel and dumped in Lake Ontario.

Police showed up with a search warrant late Monday at 12 Shallowford Ct. -- located near Brimley Road and Steeles Avenue East -- to look for evidence in the case of Quang Lu, 47.

They are working on the theory that Lu was murdered in the basement, with his body taken to the garage for placement in the barrel, CTV Toronto's Jim Junkin reported.

Six years ago, the home was the site of an ecstasy drug bust. Currently it is used as a rooming house, he said.

People on the street were quite surprised to see the police presence in their neighbourhood.

Lu was also known as "The Black Ghost." Police say he had no job or obvious source of legitimate income.

He lived in Thornhill but spent a fair bit of time at the Scarborough residence.

Lu went missing in November 2007 after returning from a trip to China. His 2004 BMW also went missing and still hasn't been recovered.

At the time of Lu's murder, the home was owned by someone in Shanghai, China, Junkin reported.

Police received a tip last month. They investigated and found the barrel containing Lu's remains about 100 metres offshore near Lower Jarvis Street and Queen's Quay on May 23.

Police believe he was dumped about the time he disappeared.

His remains were well-preserved in the concrete, which allowed police to easily identify Lu.

With a report from CTV Toronto's Jim Junkin