BCSC Eron figure Chambers called an "intolerable" danger
B.C. Securities Commission *BCSC
Thursday January 16 2003 Street Wire..
by Brent Mudry
Controversial former Vancouver lawyer Martin Chambers, an alleged drug money launderer and organized crime associate, faces strong opposition from the U.S. government in his latest bid to win bail from jail, which has been his home for the past five months. In a new court filing in Miami supported by top-secret sealed documents, authorities claim Mr. Chambers presents a serious threat to parties involved the case.
"To be sure, with respect to the defendant, potential witnesses in this case have expressed their concerns for safety to the law enforcement agents in the United States and Canada," states Assistant United States Attorney Richard Hong in a filing dated Monday. "As the court previously observed, moreover, there has been a credible death threat made to one of the defendants in this case. As a result of the threat, that defendant was relocated to an undisclosed place. The threat was not viewed as an idle one."
In addition, "the law enforcement agents have encountered people who have declined to step forward to even acknowledge their acquaintance of the defendant on the basis of their concerns for safety," states Mr. Hong, the lead prosecutor in the money laundering part of the Bermuda Short case.
Mr. Hong argues that "this is not a close case." "There is clear and convincing evidence that the defendant continues to pose a substantial danger to the community. He should continue to be pretrial detained."
To support his argument, the prosecutor has filed several sealed documents -- an affidavit and "certain law enforcement reports" -- which were also mailed to Mr. Chambers's two American lawyers: Donald Re of Los Angeles and Gerald Houlihan of Miami, on Monday. This is the first time defence lawyers have seen any part of the secret RCMP and FBI dossiers on Mr. Chambers, as similar documents were sealed last fall in an ex parte bail hearing voir dire, and Mr. Chambers failed in a subsequent bid to overturn the court sealing order.
"As fully detailed in the reports and affidavit, the defendant's pretrial release from the Federal Detention Center in Miami, regardless of the conditions of release, would pose a serious and intolerable danger to the community, including to the potential witnesses in this case," states Mr. Hong.
The prosecutor also argues that a defence bid to spring Mr. Chambers with a curfew and electronic monitoring is much too risky to even consider. "The defendant and his family can theoretically leave the jurisdiction by an airplane, small boat and/or car, with the use of fake identification cards/passports commonly available in Miami, to another non-extraditable, offshore jurisdiction, and would not be missed by a supervising pretrial service officer until long after the defendant and his family are esconced in a safe haven."
Mr. Hong further argues that even if fool-proof security could be ensured, Mr. Chambers has failed to provide his true financial condition so that an appropriate and substantial bond amount can even be considered. The only financial documentation Mr. Chambers has presented the U.S. government is his Canadian tax returns for 2000 and 2001, in which he declared net income of $40,962 (Cdn.) and $86,256 (Cdn.), respectively. (Oddly, the U.S. government notes Mr. Chambers claimed to live in Edmonton in Alberta, although most court records suggest he lives in B.C.)
"These modest reported incomes are inconsistent with his prior claims of being a 'successful businessman,' with substantial income and assets, as previously reported to the pretrial service officer in St. Louis, and as he stated on audiotapes regarding his properties in Winter Harbour, British Columbia," states Mr. Hong. "Defendant's submission of the tax returns, without more, only raises more questions about the defendant's veracity regarding the disclosure of his financial resources."
The U.S. government also argues that Mr. Chambers has no legitimate business to tend to outside of jail. "Defendant also raises claims that he cannot continue his 'legitimate business' while being in FDC-Miami and that he cannot prepare for his defence for trial at FDC-Miami. First, as the United States explained at the defendant's initial appearance in August, 2002, the defendant's business is money laundering," states Mr. Hong.
"In the audiotape and videotape evidence in this case, the defendant stated that he was in the business of laundering money. He stated to the undercover agents that he could handle a substantial amount of drug proceeds to launder through the international banking system, not just hundreds of thousands of dollars, but millions of dollars. This money laundering business is at the heart of the defendant's 'legitimate business.'"
While Mr. Chambers has not yet unveiled his defence, his long-time Vancouver criminal defence lawyer Howard Rubin presented an affidavit, quoted by prosecutor Mr. Hong. Mr. Rubin claims the audiotape and videotape evidence detailing the alleged narcotics money laundering transactions is actually "consistent with legitimate Canadian insolvency business and the refinancing of insolvent properties and commercial transitions (sic), the bulk of his business for the past 20 years and, in particular, the setting up of companies, Trusts, Professional and Banking relationships in the Caribbean for the creation of a 2nd Mortgage Fund and High Return Pool for restructuring purposes."
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