The trial continues !!
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B.C. Securities Commission (C-*BCSC) - Street Wire
BCSC-known Purdy unconcerned with drug money, jury told
B.C. Securities Commission *BCSC
Thursday February 20 2003 Street Wire
by Brent Mudry
In the first Bermuda Short money laundering case, the Miami jury heard damaging direct testimony that Vancouver penny stock promoter John (Jack) Purdy seemed unconcerned after hearing a close associate say the $130,000 their group handled was drug money. (All figures are U.S. dollars.) The revelation came from forester Harold Jolliffe, who pled guilty Tuesday in the money laundering conspiracy, in U.S. District Court for the Southern District of Florida in Miami.
Mr. Purdy, 52, was arrested Aug. 14 in New York in Operation Bermuda Short, a money laundering sting featuring RCMP and FBI undercover agents posing as Colombian Cali cocaine cartel figures. The top targets in the money laundering sting were Mr. Purdy, associate Martin Chambers, a controversial former Vancouver lawyer reputed to be closely connected to the Hells Angels and other organized crime groups, and offshore banker-accountant Michael Hepburn of the Bahamas, both of whom face trial later.
Mr. Jolliffe was the second target in the money laundering sting to plead guilty. Kevan Garner, Mr. Purdy's partner, pled guilty Dec. 6 and agreed, like Mr. Jolliffe, to rat on his associates. The other remaining defendant, Ronaldo (Ron) Horvat, who worked for Mr. Jolliffe, faces a later trial with Mr. Purdy.
Despite the guilty pleas of Mr. Garner and Mr. Jolliffe, Mr. Purdy remains presumed innocent until proven guilty by the jury. Under later cross-examination, Mr. Jolliffe confirmed to defence lawyer Neal Sonnett that his plea deal includes a potential sentence of one to two years, with a likely term at the low end based on "substantial co-operation." Mr. Sonnett suggested that Mr. Jolliffe is thus motivated to help convict Mr. Purdy.
In direct examination by Assistant U.S. Attorney Richard Hong, Mr. Jolliffe testified about his conversations with Mr. Purdy.
After describing how he made a wire transfer of $74,997 as instructed by Ricardo, an undercover FBI agent, Mr. Jolliffe was asked if he told Mr. Purdy about a $150,000 amount handled. "I'm not sure I told him all the details," Mr. Jolliffe replied.
Mr. Jolliffe then described a meeting with Mr. Purdy on Oct. 18, 2001.
"We were meeting, Jack and I, on that day. I was back in Canada. I dropped in at Jack's office (on Vancouver Island) and met with Jack," Mr. Jolliffe testified.
"We discussed several things including financing for Bolivian Hardwood ... and we were talking about other companies Jack was involved with, which would be used to raise funds for Bolivian Hardwood, to keep Bolivian Hardwood going," Mr. Jolliffe told the court.
"The discussion came around to Bill McDonald (the RCMP undercover agent) and the money (the $150,000) I'd taken from Bill McDonald and Ricardo, and another individual -- Ron Horvat -- taking money from them. At the meeting with Jack Purdy, I told him it was drug money, $130,000 worth of drug money."
Prosecutor Mr. Hong then asked what Mr. Purdy's response was.
"Jack did not seem concerned at the time. The discussion was dropped and we went on talking about Master Log and other situations," Mr. Jolliffe replied.
The trial continues. In cross-examination, defence counsel Mr. Sonnett is expected to minimize any damage from Mr. Jolliffe's testimony by grilling the witness intensely.
(c) Copyright 2003 Canjex Publishing Ltd.
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